A new report from Realtor.com® has found that as many as 40.5% of homeowners are being overassessed for their property taxes, a finding that indicates some tax rates are being raised independent of home value. Realtor.com also announced the release of a new tool to challenge property taxes alongside the report.
“Most homeowners don’t realize they can protest their property taxes, and even fewer know how to do it,” said David Masters, senior director of product at Realtor.com. “Our goal is to help people feel more confident navigating the protest process, and potentially save money.”
According to Realtor.com’s report, the median potential savings for homeowners who choose to undergo the process of challenging their taxes (whether via Realtor.com’s tool or other means) is $539.
Property taxes have been on the rise, with a number of states seemingly raising their tax rates in a manner that is not commensurate with the assessed value of the properties in question. Cited in Realtor.com’s report is data showing that Georgia, Maine, New Hampshire and Wisconsin all had a median tax burden rise that exceeded the value of assessment increases.
Among the five states that saw the largest percent increase in property taxes for the year, Texas was the only state that Realtor.com found had a tax burden that lagged behind assessment values, despite the fact that the report also found that over half (51.2%) of homes were eligible to protest that same tax burden.
Other notable states that were eligible for the highest amounts of property tax relief were South Dakota, California, Iowa and Illinois. California’s estimated median potential savings totaled a notable $1,875.12.
These figures come at a time during which some states have taken measures to curtail the rise of property taxes. Colorado’s Taxpayer’s Bill of Rights (TABOR) legislation requires voter approval for property tax hikes, with excesses (unspent amounts) being returned to citizens. According to Realtor.com, California has also implemented property tax caps, which make comparing similar properties a difficult task, due to the fact that certain properties are grandfathered in at a particular rate, while others aren’t subject to the same rules.
The tool introduced by Realtor.com is available via its “My Dashboard” integration, with features that allow users to compare tax assessments from similar properties, as well as view the assessed value of their own property for comparison. The tool can also connect users to a real estate agent if needed. It requires an opt-in to the site in order to be utilized.
To read the full report, click here.
