If you had a chance to see me this month on The Money Pro$, we were talking about property taxes. High property taxes affect everyone, but especially during recessions and property values have declined each year since 2006, yet property taxes have increased. Rhode Island is a great place to live, but it does come at a price; If you really want low taxes, move to Louisiana or Alabama, so while there is a trade off, at what point will it be too much? One thing every homeowner should do is make sure you have every exemption coming to you: Homestead, Senior citizen, Veteran, disability, etc. Do some research and get creative, I had a client in East Greenwich who leased some of her land to a farmer who grew hay; she was able to get a reduced rate based on the land use. If you feel your taxes are out of line, you can always try and appeal. Every town is a little different so you need to know the process; the forms you need to file and when the deadlines are for filing the appeal, typically 60 days or less from the time your assessment was mailed. Here is the basic process for appealing your taxes:
- Get a property card- Most are online, this has all the info the assessor used—square footage, the number of bedrooms and bathrooms, and features such as a garage or finished basement. Are there mistakes, errors, etc?
- Comps. You need to know what comparable homes in your area have recently sold for. Compare Size, location, amenities. Find 3-5 properties that are comparable to yours, and if yours is more than 10 % higher, you might have a case
- Make your case: will likely have an informal hearing, if you get denied you have the right to appeal
- File an appeal most appeals are submitted in written form with a statement explaining why you feel the evaluation is inaccurate. Support your claim with evidence (property cards and photos can be useful if comparing the condition of your home to others), and succinctly make your case
