Property Taxes: A Governmental Revenue Source and a Homeowner’s Major Expense
For most local and state governments, property taxes are the single largest source of revenue. Nationally, in 2003, over $297 billion was collected in property taxes. While property taxes can be good business for governments, it’s definitely not the case for the majority of homeowners.
For homeowners, property taxes represent the single largest home-related expense outside of their mortgage. Its true that recent low mortgage rates have allowed homeowners to cut their monthly payments, but spiraling property taxes have eliminated much of that savings for many.
What may be even harder to swallow is the idea that your property may be over-assessed. In fact, according to the National Taxpayers Union, approximately 60% of all taxable property may be over-assessed. Yet, only about 1 in 50 owners actually challenge their assessments.
What’s the moral of the story? Carefully review your property assessment. Check for errors. Compare your property to comparable neighboring properties. If you believe an error has been made, contact your county’s assessment office for an appointment to discuss your bill with the assessor.