2010 Jul 19th
Tax Appeals Anyone?
Categories: For Buyers, For Sellers
About a month ago I posted a little survey asking if anyone had filed a tax appeal and what the result of that appeal was. This is what I learned:
- People were split about 50 / 50 as to doing it themselves versus using an attorney or service. One person used easytaxfix.com
- Almost everyone accepted the offered settlement.
- Reductions were about 15% of assessed value with translated in most cases to a 1 to 2 thousand dollar savings.
Overall, if your taxes seem out of line compared to your neighbors (especially within your own building) it is probably worth the cost and effort. It’s too late for this year but something to keep in mind for next year. If you are planning on selling, it can only help you. If you are a buyer and the taxes on a property you like seem high, ask if the seller’s have ever appealed. If not, maybe you should do so if you buy.
why do so many people just accept the settlement? i hear that the settlement amounts are still substantially higher then the FMV!
Most people accept the settlement because the cost and trouble of going to hearing usually outweighs the few extra dollars in tax savings you might get. In my case, the settlement came in with my taxes being just $150/yr. more than they should be – close enough that the costs and time spent going to hearing wasn’t worth it. The offer had my taxes reduced $2k a year. I wasn’t going to haggle over another $150. I have a friend in Jersey City who is going to hearing because the city assessor is not accepting the reality of the market in that particular case.
As for doing the appeal oneself, I’m a lawyer and could have done it myself. But the professional I hired has a long-time relationship with Hoboken’s city assessor. It was that relationship that I was paying for – and it’s why my new asessment is almost right on point without any haggling. Anyone who has ever done business in Hoboken will tell you that who you know is more important than what you know.