Association Advocates

Property Tax Appeals

Provided by Association Advocates (Current FRDA Members)

 

Making Sense of Property Tax Appeals In A Down Economy

It would seem to make sense that, if the economy has negatively impacted real estate values, then shouldn't real estate property taxes also decrease to be in line with current market conditions?  Unfortunately, it may not be that easy to change the ways that government has been calculating taxes, especially when they are having their own financial shortfalls.  So what can you do and what are the benefits of appealing your taxes?

First, an Association may get better results by initiating a Tax Appeal than that of an individual homeowner. Your "unit" will be compared to other similar properties in the area including your building.  There are many factors involved in the computation of property taxes and the ability to obtain a reduction. An attorney representing the entire property will have a better chance of success on behalf of all owners.

Second, there is no cost to the Association unless your tax attorney is successful in obtaining a savings. The Board should review the Association's declaration to see if it requires owner approval or just Board approval.  Once approval is obtained, the Board should enter into a contract on behalf of the Association with a reputable firm that is familiar with their Township area and has a reasonable fee.  Fees are based on a contingency of usually 24-33% of the tax savings of the first year.   If successful, they will provide the Board with a spreadsheet itemizing the costs based on % of ownership to bill back to the owners.

Third, do not delay in implementing this process and getting info to your attorney.  There are specific deadlines for each Township area that must be met and different levels of appeals. Find out what the deadlines are for your area either through your tax attorney or the Assessor's office.  A seasoned tax attorney may request important information helpful to your particular area including, but not limited to, obtaining recent appraisals, foreclosures, and closing dates for newly developed properties.