Governments struggling over tax revenue declines

Homeowners looking for cash now are having a difficult time due to their tax bills. Across the country, owners are challenging their tax amounts due to the value of their properties declining. The overall result is that local governments are in danger of losing yet another revenue in the already struggling state coffer. It seems that homeowners from New York to Arizona are arguing about their tax bills, and socioeconomics is not a contributor. Homeowners of $10 million-estates to one-bedroom bungalows are taking up arms against the tax bill.

A nationwide crisis

Gus Kramer, assessor in Contra Costa County, California, (see http://www.cnbc.com/id/31747498) said, “It is worthy of a Dickens story. These people are desperate. They know their home’s gone down in value. They have watched their neighborhoods being boarded up. They literally stand in there and say: ‘When can I have my refund check? I need to feed my family. I need to pay my electric bill.’”

Governments are having a difficult time with the issue. According to a survey done by the National Association of Counties, 76% said that falling property tax revenue was significantly eating away at their budgets. Jacqueline Byers, research director for the firm, said, “In the recession today it’s difficult for any government to give up any revenue. The tax revenue being hit hard couldn’t have come at a worse time.”

The recession and the state budget

The recession was difficult on every local government. The staggering growth in unemployment, lack of spending and a drop in revenues for every business have combined to make it difficult on the states. Although many experts are citing the recession as being officially over, there is still a time to regroup and resettle. Byers added, “Though the recession is behind us, its wake isn’t. We still have to wait and see what needs to be cleared up before the market returns to normal.”

Some counties are trying to make ends meet by raising the tax rates associated with home values. The plan is a sketchy one because homeowners looking for cash now don’t have extra funds to put into their homes. Add to the problem the loss of equity in their properties and it’s a difficult thing to ask for more money. Byers said, “Raising tax rates is like squeezing homeowners for something they just don’t have right now.”

Homeowners are asking for reassessments

Many homeowners are requesting reassessments. For example, in Atlanta, Georgia, thousands of people lined up at the local government office to file a request for a reassessment. In Ohio the numbers of requests have multiplied five times over. Robert W. Singer, mayor of Lakewood Township, New Jersey, said, “We have been absolutely getting killed. We have never had this before. Usually they are undervalued. Now, everyone is overvalued.”

The added cost is hampering local governments even more. Property taxes are calculated by a wide variety of things and no one formula is used for towns, counties, schools, and fire districts. Each one has their own set of rules. Because tax formulas vary so widely, not every assessment value that comes back lower is going to translate into a homeowner’s tax bill being lowered along with it.

Homeowners in trouble over tax bills

In the end, homeowners who need cash now to pay their tax bills have to be creative. Bonnie Grassley’s house in Fort Pierce, Florida is having problems making her tax bill. Though she only has to come up with an additional $150 a month, she is unemployed and living off of savings. She said, “My home means everything to me and it is all I really have. I am determined to keep it, come hell or high water. It is a terrible way to lose your home, just over taxes.”

Need fast cash now? Apply HERE!

Image from phillyburbs.com.

The other day I read that Alpine, NJ, despite being the most expensive place to buy a house in the country, has the among the lowest property taxes. When a city official was questioned about this, he said they were able to keep property taxes down, he said they focused on “not becoming a full-service town.

Of course, being on the lower end of the wealth scale, I thought “That isn’t fair that these people who own $4 million homes and obviously have tons of money get to pay less in property taxes!” Today I came across an article about property taxes on CNN Money and discovered that there’s a way for the common folk to get lower property taxes, too.

Dispute property’s assessed value

Beth Braverman from Money Magazine says the only way to get your property tax decreased is to get the estimated value of  your property decreased. You’ve got to come up with a good argument for why the property assessment amount should be decreased, and you must win.

This won’t be as easy as getting an online cash advance, but it sounds like it can be done. Home prices have dropped 27 percent since 2006, so it makes sense that if your property value has dropped, you should not have to pay as much property tax.

Learn the rules

First off, you must appeal your  tax bill within 30 to 90 days from when you get it, depending on where you live. Find out the rules in your area regarding how long you have to make an appeal as well as how much your assessment has to be off by in order to file an appeal.

Make sure you carefully read over your official property record and check to make sure it is accurate. Then, check out zillow.com and compare your homes value to similar homes.

The faster the better

The sooner you file your appeal, the closer to the front of the hearing line you’ll be. Most areas require that you show up in person for your hearing. Braverman recommends sitting in on a property tax hearing to prepare for your own hearing.

If your hearing is after your taxes are due, you will have to pay them. However, if you win your appeal you will get a refund.

If you lose your appeal on the city level, you can appeal at a state level. States usually won’t take appeals from people seeking less than a few thousand dollars.

Be nice!

Braverman emphasizes that property assessors are bombarded with angry people demanding their assessment be changed. If you nicely, pleasantly and informally discuss your property value with the assessor, you’ll stand out.

Never underestimate the power of being nice.