I had my taxes go up as a result of the homestead act, How does that
work? What is the benefit if any of the homestead tax?
judy
On 11/30/2011 08:58 PM, Stephen J Gewirtz wrote:
I received an ad in the mail today from an outfit called "Value
Appeal." It shows that my current assessment is $178,600 (the correct
figure) and that if I pay them $99, I should be able to reduce my
assessment to $124,285 based on information they will supply
concerning comparable sales. Since a house two doors from mine just
sold for $200,000 in September, I find it hard to believe the claim.
The ad also claims that I can reduce my real estate taxes by a total
of $3690 until the next reassessment (in January, 2014). Because of
the homestead tax credit, I know that that is totally false. And I
have no idea whether the advertiser is or is not legitimate.
If you have owned your house for a number of years, you probably had
your assessment go way up in January, 2008 and then go down last
January. But thanks to the homestead tax credit, you probably are
being taxed on nothing close to your assessment. Five years ago, my
assessment was a little more that $83,000, and thanks to the homestead
tax credit, my effective assessment has gone up by only 4% per year
compounded for City and CVCBD tax purposes and 10% per year compounded
for State tax purposes. Therefore, I really gain nothing by lowering
my assessment to $124,285 even if the claim that I can do so is true.
On the other hand, if you bought your house just a few years ago and
were reassessed almost immediately based on having paid a high price
during the real estate bubble, you might gain by appealing your
assessment since you are getting little or no benefit from the
homestead tax credit. At the same time, it is not hard to get
information about comparable sales without paying $99. According to
the ad, an appeal has to be filed by December 31 (I just looked
online, and the deadline is the first business day after January 1).
You have the right once a year to appeal/protest your assessment.
Let me add that CVCBD was told by the City to expect a further
reduction in assessments when we are reassessed again in January,
2014. Nationally, because of the number of foreclosed houses that
have yet to go on the market, prices are still dropping and are
expected to continue to drop. I have no idea what is happening with
home prices in Charles Village.
Steve
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