$1500 Reduction In Property Tax. Help Your Friends And Neighbors Save Money
Want to make your neighbor think you deserve the citizen of the year award? I just received a letter from our County Tax Board and they are going to lower my tax assessment for the 2008-2009 period by $1,500. I don’t plan on keeping this news to myself and have already started calling friends that live nearby. I live in California and the sluggish real estate market has caused housing prices to fall between 20-35% is some areas. The letter I received from the county tax collector stated that the property values are reassessed in January of each year. The sad, but realistic outlook is my property tax bill may decline again next January due to housing values. Housing continues to struggle with two foreclosures around the corner from my house.
What can you do if you think your property value has decreased? Call your county tax board and tell them your property value has decreased from the previous year. You will be asked to document your home value and provide a letter to the county tax board.
I utilize Zillow.com as they have an easy interface that will allow you to search for homes sold within 1-2 miles of your home. Find several homes that sold within the last year and attach them to your letter.
Doesn’t everyone in your county receive a property tax decrease letter automatically? I found that two friends had received a letter, but three did not know what I was talking about. I wouldn’t assume that you would be receiving a tax break this year and you should be proactive and contact your local property tax agency.
Will the special county assessments be decreased as well? I reviewed my 2008-2009 property tax bill and noted that the special assessments for emergency services, city lighting, storm drains, mello roos, county trails, and 911 remained the same. I would call you county tax office and find out if your special assessments would be impacted by your decreased real estate value.
I don’t like my neighbor so why should I tell him about the decreased property tax letter? Well, if you’re like me, you might need a new fence soon. A common fence shared with your neighbor can easily cost a few thousand dollars to replace. Maybe your neighbor needs new landscaping and always complains that he doesn’t have enough money. Here’s your chance to help him out and tell him about the property tax adjustment.
What to do with your new money? Hopefully you have already budgeted for your 2008-2009 property tax bill so you will be able to put the money in other investments.
1. Apply the tax reduction towards your mortgage. Apply the savings to your principal and decrease the amount owed on your home.
2. Establish an emergency savings account. Dave Ramsey recommends at least $1,000 in an emergency account. You might be more comfortable with more for your families needs.
3. Payoff a car loan or credit card balance.
4. Rainy day fund. Put the money in an ING Orange account or high interest savings account. Do you have a Christmas fund or birthday fund you like to utilize?
5. Start a 529 college plan for your children. You can start with $50 or $100 and start to seed your child’s college fund.
Sending a letter to your county tax board could save you a few hundred dollars and be easier than finding an emergency money source. Have you written a letter to your county tax office? I’m interested to hear what you heard back and if you neighbors are doing the same.
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asithi @ Small Steps to Health Said:
Cyberhomes.com is also another good website. Sometimes they correlate with Zillow.com, but sometimes not.
Posted on September 25th, 2008
MoneyGrubbingLawyer Said:
It’s definitely worth cehcking out whether you will benefit from a reassessment if you’re living in a downmarket. We’re currently in a bit of a boom, so values (and tax values) are climbing quite a bit. When I got my last assessment, it was higher than I thought it should be, but a bit lower than some of the neighbors. I considered calling up for a reassessment, but decided against it when I realized that there was just as much chance of it going up as going down- a reassessment can be a double edged sword, so make sure you’re confident that it’s going to move in the direction you want.
Posted on September 25th, 2008
Greener Pastures Said:
I’m calling today! What a great tip. Our town had an assessment just before things started to crash, too, so I should get at least some savings.
Best,
Lisa
PS stumbling
Posted on September 26th, 2008
Scott Said:
@ Asithi Thanks for the extra resource.
@ MGL I sure wish I had your market right now. We are seeing 20-35% slides here in California.
@ Greener Pastures. Let me know what your county tax board tell you. If your market has fallen, you should receive an adjusted tax bill.
Posted on September 30th, 2008