Lower Your Taxes By Appealing Assessments

One result of the decline - or depending where one lives, the collapse - of the residential real estate market is that many homeowners are likely to find themselves with tax assessments that exceed the current market value of their homes. If you believe that you are in such a circumstance, you need to check your assessment against the current market reality in your neighborhood in terms of current sale prices and/or via an appraisal. City assessments are an inexact science at best and are not always quick to catch up with market changes, especially when prices are falling. This is especially true in neighborhoods that have been plagued by numerous foreclosures and/or short sales. A recent Virginian Pilot story looks at the situation in the southside of Hampton Roads. Here are some highlights:

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As home prices fall across Hampton Roads and city assessors scramble to keep up with changing values, persuading a city to lower an assessment - especially by $10,000 or more - could mean hundreds of dollars in tax savings. In the past year, the median price for homes in South Hampton Roads has dropped 7.4 percent, according to Real Estate Information Network, the Virginia Beach-based multiple listing service. Sales of existing homes also have fallen to unusually low levels - another problem for cities trying to value them.

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"We're all up against the same thing," said Jerry Banagan, Virginia Beach's assessor. "The volume of sales is down so much that (it) makes it harder to do an assessment and make comparisons." Several cities have already announced that median assessed values will decline this year. Despite that, for homeowners who think their properties still are overvalued, now is the time to challenge the assessment.

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"If you disagree, you call into the office. We will put them in touch with the appraiser who is responsible for their property." Minor discrepancies such as mistakes in square footage, damage that has occurred in the past year, or the fact that a home is unfinished, are often resolved quickly.

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"We normally get 300 to 500 calls a year," said Chesapeake Assessor William L. Rice. "Out of those, we'll do about 75 or 80 home visits. We come out and take a look. If there's something wrong, it's often something on our property record cards." The assessor shares with the homeowner recent sales in the neighborhood that were used as comparisons.

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If the city does not agree to change the assessment, the last recourse for a property owner typically is to appeal to the city's Board of Equalization. Boards meet at various times, depending on the city.

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Depending upon one's circumstances, filing an appeal with the Board of Equalization may make sense and could translate into savings for a number of years to come. Since each local city has its own process, it is important to file a timely appeal. The burden of proof in an appeal lies with the taxpayer:

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Section 58.1-3379.C of the Code of Virginia: "the burden of proof shall be upon a taxpayer seeking relief to show that the property in question is valued at more than its fair market value, that the assessment is not uniform in its application, or that the assessment is otherwise not equalized. In order to receive relief, the taxpayer must produce substantial evidence that the valuation determined by the assessor is erroneous and was not arrived at in accordance with generally accepted appraisal practice."

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Set out below are the schedules for the cities in south Hampton Roads:

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Chesapeake Board meets: May
File appeal by: May 1
(757) 382-6235
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Norfolk Board meets: July and August
File appeal by: May 31
(757) 664-4732
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Portsmouth Board meets: April
File appeal: Office recommends as soon as possible before the board meets.
(757) 393-8631
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Suffolk Board meets: May
File appeal by: April 30
(757) 514-7475
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Virginia Beach Board meets: December
File appeal: The city accepts appeals all year.
(757) 385-4601