2022 property tax appeals may be less successful

Homeowners who want to appeal their taxes must prove their home is overvalued – a tall order in a time of rapidly rising house prices.

NEW YORK — Homeowners facing rising property taxes are often tempted to appeal. But in 2022, homeowners may not be able to cut their bills like they have in the past, according to The Ascent, a Motley Fool publication.

Property taxes are calculated by taking a home’s assessed value — the amount a local appraiser thinks it might sell for — and multiplying it by the area’s local tax rate. To successfully appeal a property tax, homeowners must prove that their home is overvalued. However, with house prices rising rapidly in 2021, that can be hard to prove.

A call could prove more difficult as house prices have risen in many parts of the country. The National Association of Realtors® (NAR) has recorded double-digit annual percentage gains in existing home prices over the past year. In November, existing home prices rose 13.9% from a year earlier.

Still, some owners can have success with a call. If they feel a valuation has risen too much, they can appeal and show comparable sales at lower prices.

The amount that property taxes are expected to increase due to rising house prices will vary significantly across the country. Changes, even in the assessed value of a house, are not made at the same time everywhere; some local evaluators may do this on a one-year or even five-year cycle.

“It depends on where you live as to when these changes in property values ​​that we’re seeing take place,” said Marc Pfeiffer, senior policy researcher and deputy director at the Bloustein Center for Local Government Research. at Rutgers University in New Brunswick, NJ, in Barrons. .com.

Source: “Appealing your property taxes could be tough in 2022. Here’s why,” The Ascent/Motley Fool (December 25, 2021) and “Here’s what could change your U.S. property tax bill in 2022 and beyond.” beyond,” Barrons.com (December 6, 2021)

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Penny D. Jackson