It’s Tax Assessment Time Again
It’s tax assessment time again in the city of Charlottesville.
Here at Solutions, we’ve taken a look at the recent press release from the city of Charlottesville and have found out a few things about this year’s assessments.
Many residents get understandably nervous when their assessments go up as that means their taxes will be higher. First, we will look at this year’s results and then explain how you might go about appealing your assessment.
In the annual review of property, the City Assessor’s Office just released figures that show the total value of taxable property, including new construction, increased by 2.78%. The City has 13,134 taxable residential parcels and approximately 73% stayed the same or declined in value and 27% increased in value:
* Assessments for existing residential property increased in value by 1.78%.
* Assessments for existing commercial property increased in value by 2.33%.
* Combined existing residential and commercial property increased in value by 2%. When new construction is added to the value of existing property the total value of property in the City increased by 2.78%.
The Assessor’s Office reviewed assessments and sales information within the City to determine the assessed value for tax year 2015. Reassessment notices have now been mailed to all property owners as of January 31. Virginia law requires cities to assess all properties annually.
If residents need assistance with paying their taxes, there are existing programs that can help. Residents are encouraged to apply for the City’s Real Estate Tax Relief Program.
Anyone 65 years of age and older with an annual income of $50,000 or less and a net worth of $125,000 or less, excluding their home and ten acres of land, may qualify for the program. Persons under 65 years of age who are permanently and totally disabled may also qualify.
In 2014, this program aided 464 households with an average tax relief of $1,210. Applicants have until March 2, 2015, to apply for the Real Estate Tax Relief Program, and until May 1, 2015, to apply for the Rent Relief Program.
If the program is reauthorized by City Council, applications for the Charlottesville Housing and Affordability Program will be mailed in early July and applicants will have until early September to file.
Last year 502 applicants received $375 and 406 applicants received a $525 grant to assist with their Property taxes.
Please contact the Charlottesville Commissioner of Revenue’s Office at 434-970-3160 for assistance, or visit www.Charlottesville.org/
Property owners who have not received a notice by Feb. 6, or who have questions, are encouraged to call the Assessor’s Office. Property owners wishing to discuss their assessments for 2015 must do so by March 2 to be eligible for a review for 2015.
The Assessor’s office is located on the third floor (Room 320) of City Hall, and the business hours are from 8 a.m to 5 p.m.. The phone number is (434) 970-3136. The assessments are accessible on the City’s website at GISWeb.Charlottesville.org. Appeal forms are on line too at both libraries, and the Assessor’s Office.
Should I consider Appealing my Tax Assessment?
Many residents have valid reasons for wanting to appeal their annual assessment. In order to help them prepare for the process, we’ve provided a few tips to successfully do so.
The key is identifying properties that are very similar to your own in terms of size, style, condition, and location. It’s possible to trim your property tax bill by appealing the value the assessor assigned to your home as that “assessed value” is what’s used to calculate how much tax you owe.
One way to lower your property tax is to show that your home is worth less than its assessed value. You can do the initial research online in just a few minutes or by making a quick call to your Solutions agent.If it turns out you’re right and your property is assessed at too high a value, the process for appealing can stretch out for months.
Read Your Assessment Letter
When your new assessment comes in the mail, it’ll list information about your property, such as lot size or a legal description, as well as the assessed value of your house and land. Your property tax bill will usually be calculated by multiplying your home’s assessed value by the local tax rate, which, in Charlottesville is $.95 cents per $100 of assessed value and $.799 cents per $100 for Albemarle County.
If you think your home’s assessment is higher than it should be, challenge it immediately. You generally have less than 30 days to do so, though each taxing authority sets its own timeline. Procedures are often outlined on the back of the letter.
Follow these five steps to challenge your assessment:
1. Decide if an appeal is worth your time.
How much effort you decide to put into a challenge depends on the stakes.
For example, if the median property tax was about $2,000 that’s about 1% of the roughly $200,000 median-value home.
If you’re able to lower your assessed value by 15% to $170,000 and therefore save 15% on your property tax. That lowers your tax bill to about $1,700, a net savings of about $300.
2. Check the data.
Make sure the information about your home is correct. Is the number of bathrooms accurate? Number of fireplaces? How about the size of the lot? There’s a big difference between “0.3 acres” and “3.0 acres.” If any facts are wrong, then you may have a quick and easy challenge on your hands.
3. Get the “comps.”
Ask your Solutions agent to find three to five comparable properties — or “comps” — that have sold recently. Alternatively, check a website like http://www.
If you’re willing to pay between $350 and $600, you can hire an appraiser to give you a professional opinion of your home’s value.
Once you identify comps, check the assessments on those properties. Most local governments maintain public databases. Your Real Estate professional can help you with their locations.
If the assessments on your comps are lower, you can argue yours is too high.
Even if the assessments are similar, if you can show that the comparable properties are superior to yours, you may have a case for relief based on equity.
4. Present your case.
After you’ve done your research, call your local assessor’s office. Most are willing to discuss your assessment informally by phone. If not, or if you aren’t satisfied with the explanation, request a formal review.
Pay attention to deadlines and procedures. A typical review, which usually doesn’t require you to appear in person, can take anywhere from one to three months. Expect to receive a decision in writing.
5. Appeal if you don’t like the review.
If the review is unsuccessful, you can usually appeal the decision to an independent board, with or without the help of a lawyer. You may have to pay a modest filing fee, perhaps $10 to $25. If you end up before an appeals board, your challenge could stretch as long as a year, especially in large jurisdictions that have a high number of appeals.
But homeowners often do triumph. Here are a few things to keep in mind:
- The appeals board can only lower your real estate assessment, not the rate at which you’re taxed.
- There’s a chance that your assessment could be raised, thus increasing your property taxes.
- A reduction in your assessment right before you put your house on the market could hurt the sale price.
An easier route to savings might lie in determining if you qualify for the property tax exemptions discussed above based on age, disability, military service, or other factors.
