Lowering Real Estate Taxes?
In my area Dayton, OH, I am looking at several properties for my new home. In both cases I can buy the properties, which are in fine condition, for less than the county has them appraised for (for tax purposes). My question is: have any of you bought a home for less than your county's appraised tax value and then had the county change the tax valuation total to what you just paid for it? I have called my county's auditors office and get conflicting stories....I talk with one employee and they say as long as it was brought from a real estate agent and was a legitimate purchase, it should be no problem. I hang up the the phone and call in again and get the opposite answer. They said unless the property was bought at a sherrif's auction where inspection was unavailable to the purchaser, I am out of luck. Have you had any similar experiences?
Public Comments
- You have to file an appeal with the county appraisal office, using the arguement that the sale price reflects the current value. They may or may not adjust their appraisal. I have been successful in the past with that approach. Good Luck
- If you are an owner, you can appeal the tax assessor's valuation in accordance with set procedures. Assessor's valuations aren't always based on market value.
- There are many homeowners that never appeal a single increase! During the appeal period (which is usually a limited time once a year), you can bring in at least examples of comparables. This is simply finding homes which are very similiar to yours and show that the taxes on those homes are lower. I did this process before and was very easy to do. Within a couple of weeks I received a letter informing me that my taxes were to be adjusted downward! With just a little work, it will pay big.
- Here is a link on how properties are assessed (the actual code sections): http://codes.ohio.gov/orc/5713 I haven't read the whole thing, but in California, anytime there is a taxable change of ownership (transfers between parent-child, husband-wife, fractional of less than 5%, or into a trust is considered non-taxable change), the property is reassessed. It can be reassessed to the fair market value of the property - either the purchase price if it is an "arms-length" transaction or the assessor can determine what the FMV is based upon comparable sales. If the property is not reassessed after your purchase (it takes a while for it to make its way through from the recorder's office to the assessor's office and then for input into the computer), then you can file an application to lower the value of your property and if denied by the assessor's office, appeal the denial of it to the Assessment Appeals Board (that's what they call them in CA).
- Thanks for the answers, especially the one reply that linked the Ohio code. I have spoke several times with my county auditor's office and they confirm that (as an example) if the property is appraised for tax purposes for $227K and I buy it for $170k, when the appeal "window" is open again next year it should be adjusted down to what I paid for it or very close to that amount. One caveat is that it be an "arms length transaction", which it would be. Thanks again. Steve
