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February 18, 2010

Property-tax appeal success story

Louis Wilen of Olney will be paying less in property taxes this July than he otherwise would be, thanks to a successful appeal. And he didn't have to wait for a reassessment to register his disagreement.

As I mentioned back in December, homeowners can appeal in the midst of the three-year assessment cycle, not only when a new notice shows up in their mailboxes. Wilen is heading into the third year of his assessment period, and he was convinced his property is worth less than the state assessors' calculation of several years back.

Original value:  $526,360.

New value, post-appeal: $456,810.

That's an almost $70,000 drop, which he notes is a tax savings of about $715 -- assuming no system-wide changes, such as a rate hike.

Successful appeals don't always work out to a property tax savings for homeowners. If, thanks to the state's homestead credit, you're paying on $200,000 of a $350,000 assessment, you'd need a more than $150,000 decrease to end up with a smaller bill.

But Wilen notes that his appeal dropped him below his homestead credit amount, so he's ahead.

If you've appealed, have you had your hearing yet?

Posted by Jamie Smith Hopkins at 7:00 AM | | Comments (6)
Categories: Homestead Property Tax Credit, Property taxes
        

Comments

Heard back a few days ago on one successful appeal in Howard County for an 80k reduction. (480->400)

Still waiting on an Anne Arundel appeal on a rental townhouse aiming for a 45k reduction. (290->245)

We bought in the fall at fair market value, in an arms-length transaction that was not a short sale or foreclosure. Our purchase price was just over $200K; the assessed value of the place was $400K.

We appealed. We sent our documentation including other nearby sales for the same price/sf as we paid. We didn't ask for a hearing since it seemed like they were either going to go with the purchase price as showing fair market value or not.

I'm delighted to report that they were entirely reasonable and dropped the assessed value by almost 200K to right around what we paid. It cuts our monthly property tax *dramatically*.

Here's to bureaucracies sometimes acting quite rationally and sensibly!

We appealed in Baltimore City for a $45k reduction and received a letter giving us a date and time to call in for our "hearing."

I called in and the lady who answered the phone says "What do you think your house is worth?"

I tell her what we paid (in September) and start explaining why that is fair market value, etc, etc. She just cut me off and said we'd hear back in 6-8 weeks. The whole process was utterly ridiculous. I'm hoping the appeal was successful and will try to protest if not.

It really makes me mad proberty taxes are just another way to drain you dry. Its your property and you are paying for it over and over again. This to me is very illegale. Wake up people . Why to let our so called law makers get away with this.

I had submitted a property tax appeal last year, after I received my appraisal. Unfortunately, I missed the cutoff date for last year, so it came effective this year. I actually missed the teleconference date. Result? A couple of weeks later before I sent in a request for a re-hearing I received a determination that they were reducing my value from $250+K to $170K, taking it back to about the value I purchased it for in 2004. Big savings and done really without me having to put up a fight (other than simply asking for the appeal). I think they recognize property values have taken a huge hit folks. Contrary to popular belief, they're not out to gouge you.

Pensions for the the city workers and politicians must be funded by the taxpayers. However taxpayers owe over 125 million dollars on pension benefits which the taxpayers must make up so paying your full tax assessment helps to allow our city retirees to retire with their pensions and health benefits.

Don't be Un -American, pay up so others can retire!

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About Jamie Smith Hopkins
Jamie Smith Hopkins, a Baltimore Sun reporter since 1999, writes about the regional economy. Her reporting on the housing market has won national and local awards. Hopkins is a Columbia native and has lived in Maryland all her life, save for 10 months spent covering schools in Ames, Iowa.
She trained to become a wonk by spending large chunks of time as a geek and an insufferable know-it-all.
Baltimore Sun articles by Jamie
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