Success with appealing taxes??

Question

I would like to hear about your success and or failure to get a lower property assesment. I am looking at a fourplex that has insane taxes for the area it is in. It's current taxes are about $8600, . I am told that the current owner had them lowered from 10k. Similiar properties are being taxed around 4k. The realtor said" You should be able to have it lowered about 1500 if you ask for a reassement". Even if I would be succesful in lowering it 1500, it still is too high.

I know I can go appeal the taxes myself, but am wondering if I would be more succesfull with profesional help. Are there lawyers that special in this? Can anyone recommend a strategy to
hat would almost guarantee a serious reduction for these property taxes ? I am hesitant to move forward with this big unknown.

Ingrid Nagy · Answer

If you think its worth less and you have the "potential" next year to reduce the taxes but are not certain it would work, make him an offer based upon existing your analysis.  Worst they can say is no.

The attorney is Robert Giancaterino of Skoloff & Wolfe in Roseland.  You can google his number.  they work on contingency; don't know if they do NY.   I have not done an appeal with him in a while but he successfully reduced taxes on my home and on a condo project for us years ago.  Good Luck!

Michael S. · Answer

Ingrid:

The property I was writting about is in NY and I was informed that the owner did appeal them himself last year and got them lowered from 10k. His deduction certainly helped the situation but the current taxes are not anywhere near where comprable properties are at. I have been mulling the idea of presenting a lower offer than I normally would, but becuase of the current taxes and it's current condition,  I'm still on the fence if I want to get involved. I am sitting on the side lines and observing.They have already dropped the asking price twice in the last 3 months.  As far as the Jersey attorney is concerned, I would love to have that information for potential future use.

Tod R. · Answer

Hey Jawsette,

I've heard this strategy before.  It makes sense if tax values are commonly used to value properties for purchase/sales.  In these parts, the sales price is not disclosed and therefore, tax values are known to not be reliable indicators of true values.  There is a similar strategy being used on tax returns for businesses people expect to sell in the near future.  In other words, don't be overly aggressive on expense deductions and deferral of income in order to make the business appear as profitable as possible.

Ingrid Nagy · Answer

I've done an appeal on my home several times with and without an attorney successfully.  In NJ we are flooded with appeals since we have some of the highest property taxes in the country.  Has anyone ever done an appeal on an income producing property?  I am curious how the municipality assesses a building.  They can't use standard sales comps and if they compare a building to another, how do they obtain the income figures and calculate their assessment?

Jim Wineinger · Answer

This may sound strange to some of you, but I am appealing my taxes based on the assessment being far to low.

Just as appealing their being to high it is easily done. Start with the tax assessors office and they will direct you further.

As far as mine goes I am currently valued at only 58K when they should be about 125K per the comps in the area. Getting that additional money appraised will allow for more in the refinancing that the bank will allow to be "cashed out" of the property, which will in turn allow me some lattitude in the next purchase I have planned in Septembers acution sales.

Mark Yuschak · Answer

I appeal every one of my buy and hold properties.  I don't bother getting involved in the arguement for the flip projects.

In Michigan, you can only contest your taxes during the March Board of Review.  I pull all the comps, then my wife divide and conquer and hit all the local municipalities and present our case.  The key is to be realistic, yet firm with the reviewers.  Most of the time they'll see our point and reduce the assessed value.  If they don't, we can take the case to the State (called the Tax Tribunal in Michigan).  In every instance, we have won against the Tax Tribunal.

Ingrid Nagy · Answer

Mike, I noticed you are from Jersey.  If the property is in NJ PM me and I can give you the name of a tax appeal atty I used over the years.  Appeals here are on a contingency basis so atty would collect 1/3% of the tax savings for the first year as his "fee".  Unfortunately you can't appeal unless you own the property obviously and the deadline is April 1 of next year.  However you can go to the assessor's office and get information on the previous assessments/taxes on the property historically.  If I were you I would chew the seller down on the price because of the high taxes and see if he bites.  My question is why didn't he appeal this year?

Rich Weese · Answer

Like Tod, I'm in TX. I appealed all my properties and received a SUBSTANTIAL reduction on most properties. You appeal it yourself. I received nearly 400K in assessed reductions. In texas, that equals a lot of taxes saved. I got the impression that if you show up, have a decent explanation, they give you the benefit of the doubt. Rich at houston airport in thunderstorns now. SH--!!(ship)

Scott M. · Answer

One of the members here had a thread not to long ago - her name is Kel S and she and her husband posted up a nice letter they used to get their taxes reduced in OH - do a search for her and look at her threads.

As others have said it really dpeends on your local area and laws.

Tod R. · Answer

In Tx we have property tax consultants.  I don't believe they are licensed, but I do think they have to register with the appraisal districts.  We do have the option to litigate, which requires a lawyer.  It may be worth a meeting with a property tax consultant/lawyer for advice.