Money Monday: Property Taxes

In this world, nothing is certain but death and taxes - Benjamin Franklin

For my first post back to the blogging world of real estate in 2014, I wanted to focus on Property Taxes.  This is the time of year where people get to see their tax bill - and frankly, people are often surprised by what they see!  

For New Home Owners

First of all, if you purchased a home in 2013, you will get a tax bill at the beginning of 2014.  There is a good chance you don't need to pull out your checkbook.  Typically, if you finance a home, your mortgage company will hold aside funds from your monthly payment and put it into an escrow account to pay the taxes when they come due.  You may never see a bill, just a statement from the bank showing how these funds were handled and if there is any difference in that amount.  When you get your first tax bill, call your lender.  Or call your Realtor.  They will be able to tell you what you might owe, and what to do.  

There is a reason this is confusing- did you know that taxes are paid in arrears?  This means that when your Tax Bill comes in January of 2014, you are actually paying for the first half of 2013.  Usually this is the point where buyers protest - "Wait, I didn't even live there yet!"

On your settlement statement for your house, you would have been given a credit from the seller for taxes during the time they still owned the house and you didn't live there.  This credit is essentially money they give to you - but it gets held by the bank.

Your taxes should be assessed by your purchase price - that essentially becomes the value of the property in a normal transaction.  If you paid significantly less for your house than what the last owner did, you might be able to lower your real estate taxes.  If you live in Summit County, look for the links below that tells you where to find the information and how to appeal it.  

Experienced Homeowners

Did you know that you may be paying more in property taxes than you need to?  

Depending on where you live, your home will be assessed for property taxes every 1-8 years.  If you think about the real estate market over the past few years, home values have changed!  You can find out how often your area does the re-assessment by calling your county assessor.  If it has been awhile since your home was assessed and you think it's value has decreased, give them a call!  You may be able to lower your property taxes.  

Non-Legal Advice:  If you think your property value has gone UP, it might be best not to make that call just yet.  You would be amazed at how many times I find things in homes that have gone unnoticed by the property tax assessor.  They will figure it out eventually!  

Summit County Information

If you live in Summit County Ohio, here are the links you need.

To find your current tax information:

http://fiscaloffice.summitoh.net/index.php/property-tax-search

Awesome detailed description of the parts of your bill 

http://fiscaloffice.summitoh.net/index.php/tbe

Information on how to file a dispute (must be done by April 2 for this tax year):

http://fiscaloffice.summitoh.net/index.php/tbe



I hope this information was helpful.  My full disclaimer is that I am not an attorney, an accountant, a fiscal officer, or even someone who is great at math.  But, as always, what I like to do as part of my job is to help make this field of real estate a little clearer - and to educate my clients!  When I find good information, I am happy to pass it on!