Home Tax Guide

According to a variety of news sources throughout the U.S., property taxes are currently way out of proportion with current property values that have fallen an average of 23% nationwide.  Neil Cavuto of Fox News, 60 Minutes on CBS as well as a large number of American Newspapers continue to report on this issue.

What can you do about it?  It is very important to do your homework and be aware of these home value losses in relation to what you are paying for property taxes.  This trend will only accelerate due to the sub-prime, Fannie Mae and Freddie Mac effect on home values.  Homeowners need to stay up to speed on their falling home values and learn all they can on legitimate and sound methods of reducing their property taxes.

There are a few good programs out there for the do it yourself homeowner but be sure you use one that helps you understand how the assessors work along with the PROPER PRESENTATION of your case to the tax assessor.  Going in and complaining that “my property taxes are too high” is a sure pathway to failure in this very important issue!  You have far more control than you may realize with your property taxes if you take the time and effort to learn how the process works.  You can do this but don’t expect the tax assessors to come to you.  Go to them and learn to speak their language regarding property taxes.

In the time period ending on July 1st, 2008, California lost over 144,000 residents in the past year.  This was more than any other state.  Much of this has to do with the high property taxes as evidenced by the January 18th, 2009 story featuring Mike Reilly and his family. (Rochester Democrat and Chronicle AP story)  Reilly moved to Colorado and will be exchanging $4300.00 in California’s property taxes for Colorado and a $1300.00 property tax bill.   Many Californian’s are joining Mike in order to escape the state’s exhorbitant property taxes and going to other less expensive locations.

In upstate New York, especially in the western part of the state, “New York bears the nation’s highest property tax burden as a percentage of home values.” (This according to an article by Brian Sharp in the January 19th, 2009 issue of the Rochester Democrat and Chronicle.)  “The reason upstate New York is so high,” explains Tax Foundation economist Gerald Prante, “is they spend a lot on local government, especially on education, but they don’t have high home values like the rest of the state.”

“The rankings come as no surprise at all, Monroe County Executive Maggie Brooks said.  Property taxes are out of control in upstate New York.  High property taxes have created a crisis in upstate and all of New York.”  Brooks also said, “property taxes in New York State are 79% above the national average.”

Case-Shiller reported recently that home values in 20 selected cities fell 18% from the same time last year.  The study measured the period from October, 2007 to October, 2008.  Three of the cities had a loss of over 30%