How to Escape High Property Taxes
With a little commitment and some due diligence research, it is possible to avoid a potentially heavy property tax burden. By carefully choosing where to purchase a property, taking the time and effort to protest unfair assessments and by reviewing your eligibility for certain exemptions and rebates, it may be possible to drive down the rate of this tax.
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Instructions
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Carefully research the ad-valorem rates prior to purchasing a house. Because property tax rates are oftentimes set by local government entities, these rates are predicated on any number of jurisdictional factors including township, school district, fire district or county. A house of a certain value which is located in one jurisdiction may have a lower ad-valorem rate than a house of the same value in another jurisdiction just down the road. You can research these jurisdictional variations by visiting the county assessor's office and asking for a breakdown of jurisdictional property tax millage rates. Areas with lower mill levels will charge less in taxes.
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Determine if you will be eligible for a property tax rebate from the state government. As an example, in 2007, New Jersey lawmakers funded a property tax rebate program for certain eligible homeowners. (See References 2) The program has continued since that time although its existence is subject to ongoing legislative appropriations.
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Check to see if you are eligible for a property tax freeze based on your age. Some jurisdictions allow senior citizens to freeze their property tax assessments. Eligibility for the freeze will probably be based on the amount of the senior citizen's annual income. For instance, the city of Nashville, Tennessee allows homeowners ages 65 and older with income less than $35,390 a year to freeze the amount of property tax due annually. (See References 1)
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Claim homestead exemption status on your primary residence. This is probably the easiest and most available method of getting a discount. Many jurisdictions offer a property tax break, known as a homestead exemption, on individuals who are paying property taxes on their primary place of residence. An example of this is in the State of Florida where homeowners can claim an exemption of up to $50,000 on their primary place of residence. (See References 3)
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Protest an unfair assessment if your property has lost value since its purchase. Following the issuance of a new property tax statement, you have the opportunity to protest or ask for a reassessment of your property. This is especially important if home values are declining but your assessment stays the same. (See References 4)
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