Property taxes again. This month’s column focuses on how to contest the appraisal assigned to your property by the county in order to reduce the amount of taxes that are owed. This column is a continuation of the column printed in the July issue.

Q. How do I contest my property taxes?

A. Your question is somewhat complicated. Two elements make up the amount of property taxes you owe. The first element is the value of your property and the second element is the tax rate (usually a %) assessed by each taxing authority. The only way to contest a tax rate is to write your city, county, school board, and other local governments. You can also show up for council meetings, etc. and object to your tax rates - I wouldn’t get your hopes op though. On the other hand, many people have success contesting their property value.

Q. How do I contest the value placed on my property by the government?

A. Each county has a different procedure; many of them have a website you can consult. Generally, the procedure requires you to file a written protest stating why you believe your value is too high.

Q. What kind of arguments should I place in my contest?

A. There are many reasons your appraisal could be high and your county will provide you with a list of them. The most used reasons are failure to provide a homestead exemption and below market rate.

Q. What is a homestead exemption?

A. If you live in a home and you count it as your homestead, your taxes are automatically reduced, by law, a certain percentage. Also, the law caps how much your taxes may go up each year. If you have seen an unusually high spike in your taxes, you should determine if you are receiving the benefit of your homestead exemption.

Q. What is the market rate?

A. Your property must be valued at the market rate in order to determine your tax amount due. Each year, the county appraisal authority places a value on your property. The value selected must be close to the market rate. In other words, what would a willing buyer pay for your property if it were on the market in a typical sale? Looking at foreclosure sales and bankruptcy sales will not help.

Q. Once I have filed my protest, what happens?

A. Usually, you will receive a written notice of your hearing date. On that date, you will need to appear either personally or through a friend, family member, or attorney to argue you case. You must bring any evidence you have to this hearing.

Q. What kind of evidence should I bring?

A. A number of items will help. First, you should bring pictures of your house. Most often, the county only knows your home as a three bedroom, two baths home and they place the value based upon that information. Sometimes, having photos of the house will give your appraiser a better understanding of what is being valued. Also, you can take photos with you of the surrounding homes to give an idea of the neighborhood you live in. This may help you or hurt you so you should use your discretion here.

Q. What else should I bring?

A. If you recently purchased your house, you can bring copies of your closing papers. Sometimes, these documents will show a value less than the appraised value. If you recently made improvements to your home, you can bring with you the receipts or bids for the improvements also.

Q. Anything else?

A. The most important item you can bring with you is comparables. Comparables are found by researching county records for values placed on property similar to yours and around the same community. Your appraisal office will tell you how to access this information. You are looking for properties that are valued less than your own despite being similar.

Q. How will these materials help me?

A. The law says that taxes have to be uniform. People who own similar properties must pay a similar tax bill. Showing the appraiser comparables with values less than yours is your best evidence to have you value reduced.

Q. What happens at the hearing?

A. Many counties have an informal hearing before the formal hearing and both will be on the same day. You will show up and meet with a staff appraiser first who will have the authority to lower your tax value. If you can not convince this person, then you will be taken before a panel of community leaders to plead your case. Upon the conclusion of the hearing, the panel will select you final property value for tax purposes.

Q. What if I do not like the value chosen by the panel?

A. You may file a lawsuit against the county in district court. You will need an attorney who specializes in these matters and you will need to hire an expert on property value. All of this will be very expensive so you should be trying to save a lot of taxes to make it worth the expense.