If you own a home in Westchester County or any part of the country chances are you feel your property taxes are too high. In Westchester County, for example, this could not be more true. While property values were skyrocketing, most buyers and homeowners did not complain to their town about increasing taxes. Everyone was making money. However, the market has shifted and property values have declined or are declining still. But don’t expect town officials to start reducing your property taxes. That’s not the way it works. Taxes go up automatically, but they herculean effort get them lowered.
Sometimes I think the towns take advantage of homeowners being mis-informed. It has nothing to do with education level or intelligence, it’s just that the information is not made readily available or disseminated effectively (for obvious reasons). And have you ever tried getting information from your local tax office-it’s like getting a root canal without anesthesia.
If you were not aware, your property taxes are calculated based on fair market value. This is where the it gets cloudy. According to real estate definition, market value is defined as “the price a willing buyer would pay a willing seller for a property in its present condition with neither buyer nor seller under pressure to act (such as career relocation, death of a family member, divorce, etc.). A market value sale also is known as an arm’s length transaction“. In English, it means what the house would sell for in the open market. It should be this simple, but of course it’s not. There are variables to this and what the home’s true market value is not necessarily what the town considers. It’s complicated and writing about it is upsetting. Why can’t the town just use the same formula and definition across the board?
I will share an example of how frustrating it is:
There’s a house in Port Chester, 2400 SqFt, 4 bedrooms, 2.5 baths, built in 1995 asking $480,000. Great condition, great space, great price. On a price per square feet basis, best value in town. The home has been listed with 4 different agents and has not sold. The issue? Taxes are $15,000. The town has the house assessed at $689,000. If the house can’t sell at $480,000, then logic says that the fair market value of the home is less than that, right? So where did the town come up with $689,000 and why don’t they lower automatically the same way they raised it automatically?
But know this, you have the right as a homeowner to grieve your taxes and even sue the town in order to lower your property taxes if you can prove that your taxes are too high. Unfortunately, the towns only give you about a 2 week window in the whole year to fight your taxes. And guess what?…We’re in it right now. Usually the window is open for the first 2 weeks in June. Check your local municipality for exact dates. So get moving…Click here for more information on grievance process and official application.
{ 4 comments… read them below or add one }
Jaime, thanks for this valuable information. I also found much more then I was searching for (STAR too!).
Please remove this from this website
Sheila, truth be told, lowering property taxes is as much a mystery as the future of social security. all jokes aside, your best bet is to go to your local tax office file a grievance or you can hire a professional to do it on your behalf-for a fee. For more information, check out http://www.orps.state.ny.us/pamphlet/complain/howtofile/adminreview.htm
How can we have our taxes lowered?