[net.taxes] Real Estate Tax Appeals

dda@houxz.UUCP (08/16/83)

A couple of weeks ago, I posted an article requesting information
on the procedures for a real estate tax appeal. A summary of the
replies follows. Thanks to everyone who replied.

Most people think there is little chance in winning an appeal,
especially without an attorney. However, the only person who had actually
appealed his taxes and replied to me, won his case without a lawyer.
Thus, this perception is certainly open to challenge.

Some comments were along the lines that newer homes are assessed
higher than older homes and appealing the higher assessment won't
do any good unless it is also assessed higher than other new homes
of comparable value. This is supposed to be corrected only when a general
reassessment of a township is made.

One person pointed out that the assessor may check how much the house
is insured for to help determine its value.

My understanding of the tax system is that the assessor is supposed
to assess real estate such that the ratio of market value to assessed
value is consistent throughout a township. (I'm not sure if this is
only within classes of property - e.g. commercial could have a different
ratio than residential - or if the ratios for all property classes
are supposed to be equal.) Then the assessor divides the total assessed
value into the amount of taxes to be collected to determine the tax rate.
Of course, over time the market values of real estate will inflate 
differently depending on the condition of the neighborhood and the property
itself. Thus, reassessments are required periodically so that everyone
pays close to their fair share.

Some other information I received is that the assessment only has to be
corrected if the ratio of assessed value to true value is at least
15 percent higher than the average ratio in the township. This information
is for New Jersey - it may vary in other states.

					Dennis Allen
					houxz!dda