Windfall or mistake?

May 7, 2018 9:31 PM

My property assessment always seemed high, and I just found out why - my assessment was square footage plus "additions" which listed all the rooms in my house. Rooms are supposed to only be counted under square footage, so I have been paying taxes on twice the house. I did see the assessment sheets before, but didn't realize this accounted rooms erroneously, so I've been paying an extra $2000/year in taxes. It's late for an appeal (90 day limit), but do I have any recourse to get back ~$8000 in extra taxes paid?
posted by tasty to Home & Garden (5 answers total)

It depends on the jurisdiction. In Texas there’s only a one year look back period. But California has 4 years. Other states vary. You’re wanting to make a refund request, not an appeal.

You might want to get a professional to help with comps. Accuracy about the property isn’t as important as purchase/fair market price.
posted by politikitty at 9:44 PM on May 7, 2018 [3 favorites]

What did the assessor's office say when you asked them?
posted by humboldt32 at 12:16 AM on May 8, 2018 [3 favorites]

This happened to me on a smaller scale. I was in Florida for the winter when the local (small Maine town ) Assessor "guestimated" an extra 2 baths and a bedroom because he couldn't access the house. I complained, but was basically told "tough luck", along with the usual gov-speak, like fair market value, comps, location, etc., etc. I let it go because it was only a couple of hundred bucks, but if the situation was reversed, I would have been charged, so it is not a two way street. 8K is a LOT of money though, I would seek any and all avenues to get this resolved.
posted by lobstah at 7:36 AM on May 8, 2018

Totally location specific. The county assessor around Chicago has something called a Certificate of Error which is a refund for taxes charged in error.

Heads up, if you do get a refund AND you itemize your property taxes on your federal income tax return, you will have to declare the refund as income next year.
posted by hwyengr at 8:44 AM on May 8, 2018 [1 favorite]

Best answer: This is sorta part of my job (but for business personal, not residential real so IANY Property Tax Analyst), so I will break down why accuracy is not a big concern for your assessment.

Your starting point is the amount that you paid for your house. Most jurisdictions have a limit on how much they can increase that every year, while you can argue your house is worth less at any time.

In many markets, property values are increasing faster than assessments. This means the assessors don't need to be accurate for your assessment most of the time. Accuracy is important in determining the value of all the other homes in relationship to the few sold properties. If a 1000 sqft home sold for 100k, while a 2000 sqft home sold for 200k, and your home is valued at 150k, then accuracy matters. If your home is 1000 sqft, you should have the assessable value brought down. If your home is 2000 sqft, you're still paying under market value.
posted by politikitty at 10:53 AM on May 8, 2018 [1 favorite]