How To Dispute Your Property Tax Assessment?
Each January the City’s of Alberta mail out their property tax assessments. These municipalities need to arrive at a homes value to later serve a property tax bill.
I might consider disputing my property tax bill IF I think my homes assessed value is unreasonably high. I want to pay property tax based on the fair market value of my home, contributing money to my City and Province, who in turn provide me the community I live in.
If I think my property assessment is to high, here’s how to dispute it, and win!
1. Review and read my assessment. Pause and think logically about my property assessment for one second. If I have context of the value from the previous year, great! If I just purchased my home, I have a VERY clear understanding of the market value. This is the first domino to fall in the process. Is my assessed value reasonable?
2. Log into my City’s online database to confirm property details. On the back of my property assessment are instructions on how to log into this database. Doing this took me about 5 minutes. Keep your login details handy for next time. Once inside this database, I confirmed the details of my property. The square footage of my home, lot size or number of buildings on my property might be incorrect, effecting the valuation.
3. Search similar property values. When logged into the City’s database, search the value of similar properties (property type, age, size, lot size etc). This gives me context to the market place. If I live in a neighborhood where a builder created the entire community, home values should be relatively similar. If I live in an eclectic area, I do my best to find a similar home for context.
4. Check Realtor.ca for home listing values. Another way to gain market context, and ultimately build my case proving over valuation of my home, is checking similar homes for sale. Are similar homes being listed for sale at significantly lower prices than my property assessment? If so, I think my case is building!
5. Request a Realtor complete a comparative market analysis (CMA) for you. Realtors have access to home listings AND (more importantly) home sale prices. I can connect with my Realtor and ask them about my property value. I have several TOP Realtors who are more than happy to help you – my clients out. Let me know if you want to speak with someone from my team.
6. Request a home appraisal. This will cost about $150. An appraiser will come to my home, view the inside and complete a comprehensive report compared with similar homes that have recently SOLD in my area.
Depending on how much evidence I collect, at some point I’ll begin the appeal process. The exact appeal process is detailed on the back of your property assessment.
I recommend doing as much market research and homework as possible BEFORE calling into these people. I’m essentially trying to prove these people wrong or suggest there is a mistake. This typically doesn’t go over well, UNLESS there is data to support the case.
If I am unable to change my assessed value on the phone with my municipality, my case can be sent to an appeals board. This independent board is made up of local Realtors, home appraiser and other Real Estate professionals. These people will have basically the same property data I do, so I want to be prepared.
Here’s an example of the annual savings I might experience with a ten thousand dollar drop in assessed value: $64/yr. Savings with a twenty thousand dollar drop in assessed value: $128/yr. Savings of thirty thousand dollar adjustment: $192/yr.
These are not massive numbers, BUT changing my assessed value also keeps the City in check from over charging me in future years.
If you take on the City’s property assessment department, do let me know and GOOD LUCK!
