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Smart Money: How to Slash Your Property Tax

July 9, 2009

How to Slash Your Property Tax
Smart Money
By Lisa Scherzer

... WANT TO LOWER your property tax bill? Consider seeking a reassessment.
The idea is simple. Property taxes are typically calculated based on an official assessment of your home's value. If you can challenge that valuation - and these days, plenty of homes are worth less than their peak value - you've got a shot at shaving money off your tax bill...
... Squeezed by foreclosures and falling revenues, many local governments are facing unprecedented budget shortfalls. To fill some of the gap, more municipalities are raising property taxes - in addition to cutting benefits and freezing salaries. In fact, about 18% of counties whose fiscal year begins between January and June increased property taxes to address revenue shortfalls, according to a survey last month by the National Association of Counties, a group that represents county governments...
... Homeowners would have a hard time fighting the local government on such increases, but there are ways to reduce the impact of the hit. If your assessment is based on a higher valuation from several years ago - say, before 2005, the height of the real estate boom - it may be a good time to get it reassessed, says Gary Painter, director of research at the University of Southern California's Lusk Center for Real Estate. The end result could save you hundreds of dollars a year...