Everyone must pay taxes, but no one should pay more than their fair share.

Many homeowners could benefit from appealing their property taxes. In fact, the National Taxpayers Union Foundation reports that 30-60% of taxable property in the United States is overassessed, meaning about that many homeowners are paying too much property tax!

Worse yet, only 5% of taxpayers will contest that assessment. With the help of the Stern team, contesting your property taxes can be quick, painless, and easier than you might think.

How property taxes work

Homeowners should have a basic understanding of property taxes, whether they plan to contest them or not. Property taxes are fees that each property owner pays to the local government based on the assessed value of their property. Percentages vary by county or taxing district. According to a recent article by Rocket Mortgage, Utah has the 12th lowest property taxes in the country, with residents paying an average of $1,367. New Jersey has the unenviable position of being the highest state, with a 2.49% tax rate that results in residents shelling out more than $5,000 per year!

In Utah, tax rates vary from county to county, but are all relatively low compared to other states. The main reason for this is that the state has a large tax exemption in the Utah State Constitution. According to Utah.gov, 45% of your property is exempt. (To qualify for the exemption, you must live on the property at least half the year.) This means you only pay taxes on 55% of the market value of your property. So if your home was appraised at $100,000, your property taxes would only be calculated based on $55,000. Thanks, Utah!

Reasons why you may be paying too much

The first step to making sure you’re paying the correct amount of property taxes is to claim all applicable exemptions. If you haven’t claimed exemptions you qualify for, you’re definitely paying too much. There are several property tax deductions available for seniors, veterans, and people with disabilities. The Utah Property Tax Division explains who qualifies and how to claim these exemptions here.

The second reason you may be overpaying is if your property’s assessed value is too high. Each taxing district conducts assessments by January 1 of each year. Homes are assessed at fair market value, which is the amount that buyers and sellers would agree on in an open market. Occasionally, this value can be too low or too high. In even rarer cases, a property can be assessed twice and the owner must pay twice the amount if the error goes unnoticed – so read your notice carefully.

Major changes to your property will affect the appraised value. Adding or removing swimming pools, cutting down mature trees, or even damage from a natural disaster are all reasons a home’s appraisal may be incorrect.

Typically, property taxes don’t increase when home values ​​increase at a similar, steady pace. Unfortunately, that wasn’t the case with Utah’s housing bubble. Katie McKellar writes in the Deseret News about Utah residents who experienced price shock on their taxes. Tooele County Tax Assessor Jake Parkinson said, “It’s unprecedented that there’s an increase not necessarily because of (the proposed tax increases) but because of the increasing value of your property.”

How can I appeal?

Homeowners who wish to dispute their property taxes need to remember that this does not involve a major fight with the local tax office. It can be as simple as filing a petition to dispute the assessment. If you are a homeowner who has been over-assessed, disputing that amount can save you hundreds of dollars!

The most important thing is to meet the deadline for filing an appeal. This varies from tax office to tax office, but is usually in August or September, or a certain number of days after you receive your tax bill. You can get the tax calendar from your local office. Once you know your deadlines, you must file your appeal, depending on how your county requires it.

For guidance and tips on disputing your property taxes, The Stern Team offers free resources. Click here to schedule a phone call with a representative from The Stern Team who will explain how to dispute your taxes. The Stern Team will even dispute your taxes for free and with no obligation.