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PROPERTY & INCOME TAXES
PROPERTY & INCOME TAXES MONEY SAVING TIPS
Property Tax Exemptions & Credits
Reducing Your Property Taxes With A Lower Appraisal
Save Money By Filing Your Own Return
Property Tax Exemptions & Credits
Often, property taxes can be lowered by taking advantage of various exemptions and credits offered by tax districts. Sometimes these savings can be significant. Applying for these exemptions and credits is generally quite easy, so make sure you check with your appraiser’s office or tax district and get any credits or exemptions you deserve. Some of the exemptions and credits that may be available are noted below. And keep in mind, it is important to seek good tax advice should you need to deal with bankruptcy and property foreclosure issues.
1. Homestead exemptions. These exemptions are generally for people who are full-
2. Senior citizen exemptions or credits. Senior citizens (check for age limits) often receive a reduction in their property taxes.
3. Credits or exemptions for partial or total disabilities. If you are disabled (including blindness), you may be entitled to a break in your property taxes. If you are a disabled veteran due to service injuries you may be entitled to an additional reduction in taxes.
4. Exemptions or credits for low-
5. Widows and widowers exemptions are sometimes available.
6. Exemptions for certain professions. Sometimes, teachers, police and firemen and perhaps some other professions will receive a tax break.
7. Special appraisal values for agricultural land. Farmland, timberland and other agricultural land often is appraised at lower values due to the land’s use.
Reducing Your Property Taxes With A Lower Appraisal
In addition to credits and exemptions, two factors generally establish the amount of property tax due. The first factor is the tax rate. Tax rates are set by local and state political bodies, and there is little you can do to change the rate, other than trying to influence the political process. The second factor is the appraised value of the real estate for tax purposes. The appraised value for a real estate parcel and improvements is set by the property appraiser for your tax district. In some instances, the appraised value can be reduced significantly by taking certain actions, as described below. And do not fall into the “trap” of thinking a high appraised value for tax purposes is a good thing, because you think it will make your house appear more valuable in the eyes of a potential buyer. Higher tax appraisals only mean one thing: higher property taxes. And buyers do not like high taxes.
1. In many instances, it is possible to get the appraised value of your property reduced. It is not unusual for the appraised value of a parcel of real estate to be inaccurate. Appraisals are usually based on the value of the lot and the cost to construct any structures and other improvements, and/or recent sales prices for similar real estate in your neighborhood. If five property appraisers appraise a piece of property, you will no doubt get five different appraised values. If the property appraiser in your tax district can be shown that the appraised value of your property is not accurate, they will very often reduce the appraised value, resulting in a tax savings to you for at least the current year, and perhaps for many years to come. So, consider challenging your appraised value to see if you can reduce your property taxes. It is very easy to do. If you are considering challenging the appraised value of your property, you must initiate your challenge usually within two weeks of receiving notice of your new appraised value. This is because, once a property appraisal is certified as being final, it is very difficult to have the appraised value changed. So, do not delay. Read below to see if you should challenge your property appraisal, and the steps you should take.
2. The first step in challenging your property appraisal is to determine if the information on file at the property appraiser’s office is accurate. In today’s world, the details underlying most property appraisals can be found on the tax appraiser’s web site. Either do a search on the Internet to find the web site, or call up the appraiser’s office and ask them for the web address. If the appraiser does not provide the information on a web site, you will be able to get the information from the appraiser’s office. This information will be necessary to understand just how your appraised value was calculated, and whether any of the information is inaccurate, or other mistakes were made. Information that is available usually includes the following:
a. The “Appraised Value” of the property and improvements is usually split between land value, building value and value of extra features such as porches and swimming pools, etc. The appraised values will generally be based on 100% of fair market value, although the taxing district could use a different standard. Often there will be a separate and perhaps lower value called the “Assessed Value,” which could be the same as appraised value or lower, due to its calculation as a percentage of fair market value, or because of certain appraisal exemptions
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