Top 3 Signs You Are A Good Candidate For A Property Tax Abatement or Property Tax Appeal
The one question we get the most from our clients is: “How do I know if I should file a property tax abatement/ property tax appeal application on my property?” While this question can only be determined on an individual basis, we have distilled the top 3 signs we find in all our commercial and residential clients who are successful candidates for property tax appeals in New Hampshire, Massachusetts, and Connecticut.
1.) Your assessed value is significantly higher than fair market value.
Properties that qualify for property tax reductions and refunds by means of property tax abatements/appeals are those pieces of real estate with higher assessed values than fair market values; in other words, when a municipality states a property is worth more than it actually is. There are several reasons assessed values can be higher than fair market value, but the most common reason is that the real estate market changes faster than municipal revaluations can occur. It’s important to keep in mind, however, that because property values are never exact, assessed values should be at least 10-15% higher than fair market values to be successful in a property tax abatement/ appeal.
2.) You’ve been paying your property taxes on time- even though you think they’re too high, incorrect, and/or intend on submitting an appeal.
Property taxes constitute a significant amount of revenue for local and state governments in New England states- especially in New Hampshire. For this reason, it is imperative that property owners and taxpayers pay their property taxes on time, even if they believe their property taxes are too high, incorrect, and/or they intend on submitting a property tax abatement appeal application. Any overpayment of taxes is refunded to the property owner after an abatement occurs.
3.) You have good evidence #1 and #2 are true.
Because property taxes are administered by local and state (and sometimes federal) government agencies, it’s important all property tax abatement appeal applications are accompanying by compelling evidence to prove overassessment and consequent over-taxation. Without evidence, it is impossible for the government agency, and any deciding tribunal, to determine whether the application is based in fact or fiction. Good forms of evidence to accompany property tax abatement and appeal applications may include: qualifying appraisals and/or valuation calculations; relevant property information, like floor plans, blueprints, or photographs; and/or specific evidence useful to support any specific claims.
If you satisfy these three criteria, you are likely an excellent candidate to file a property tax abatement with your New Hampshire, Massachusetts, or Connecticut municipality.