Assessment on property taxes incorrect - question...

Tsing Tao · Apr 28, 2014

This is something I've not run into before. We bought our home three years ago. As I was reading my tax forms the other day I noted the Sq footage being used in the calculation for property tax was incorrect. By about 600 sq feet. Needless to say, this changes the calc quite a bit. My question is on the previous years - can I go back and try to get that money back?

Searching around doesn't yield a whole lot.

Arnie · Apr 28, 2014

I appraised a friends some years ago and noted the same thing- he was paying taxes on air. He called the county and they came out to confirm what I found, but would not refund any money...just corrected living area for years going forward.

Tom B · Apr 28, 2014

Tsing Tao said:
This is something I've not run into before. We bought our home three years ago. As I was reading my tax forms the other day I noted the Sq footage being used in the calculation for property tax was incorrect. By about 600 sq feet. Needless to say, this changes the calc quite a bit. My question is on the previous years - can I go back and try to get that money back?

Searching around doesn't yield a whole lot.

You may have already reviewed this, but, here are some facts on amended returns from the IRS site.

http://www.irs.gov/uac/Nine-Facts-on-filing-an-Amended-Return

mgookin · Apr 29, 2014

Tsing Tao said:
This is something I've not run into before. We bought our home three years ago. As I was reading my tax forms the other day I noted the Sq footage being used in the calculation for property tax was incorrect. By about 600 sq feet. Needless to say, this changes the calc quite a bit. My question is on the previous years - can I go back and try to get that money back?

Searching around doesn't yield a whole lot.

You haven't said where you are so asking on here is like asking a wall.

I suggest you start by asking whomever you pay the money to. Then you can go from there and ask someone who is familiar with that jurisdiction if they think you were given proper information.

blah12345678 · Apr 29, 2014

Aren't you in California? If not, then ignore the rest...

If so, assessed value is just sales price * 1.02^years owned. Base value = purchase price = assessed value. It has nothing to do with square footage, lot size, improvements, etc.

Annual assessed values and the tax rate are limited by Prop 13. The assessed value can only go up by a max 2% per tax year. The tax rate is 1% of assessed value.

The base value is based upon your purchase price 3 years ago. So, let's say in your case you bought a fixer for $500K:

Year Assessed Value 1% tax
0 500,000 5,000
1 510,000 5,100
2 520,200 5,202
3 530,604 5,306

That's all there is to it in California. Except the myriad of school district fees, sewer fees, and all the other local taxes approved by voters over the years...

Tsing Tao · May 1, 2014

Tom B said:
You may have already reviewed this, but, here are some facts on amended returns from the IRS site.

http://www.irs.gov/uac/Nine-Facts-on-filing-an-Amended-Return

This isn't an IRS issue, it's a county assessor issue. I will, no doubt, have to file the refund (if and when I get it) on my income taxes. The question is how to get the refund.

Tsing Tao · May 1, 2014

mgookin said:
You haven't said where you are so asking on here is like asking a wall.

I suggest you start by asking whomever you pay the money to. Then you can go from there and ask someone who is familiar with that jurisdiction if they think you were given proper information.

I'm in Florida, but the process should be similar I would think.

blah12345678 · May 1, 2014

Sorry, I was confusing you with jem, who's in California...

There are companies that (allegedly) work to secure lowered assessment values and thus lower prop taxes. Basically, they prepare what's necessary to file an appeal and request a reassessment - putting together comps of sales prices and assessed values.

Here's a site that shows you how to do it yourself - http://www.frontdoor.com/real-estat...ment-due-to-a-decline-in-a-homes-market-value

Maybe it'll help. Maybe it won't.

I've never heard of anyone getting a reassessment, let alone a refund, for a previous year. I believe you may only appeal the current tax year's assessment, and there is a limited window in which to appeal that assessment. Miss the window, and you have to wait until next year. No recourse...

Tsing Tao · May 2, 2014

Thanks, Blah.

Sit rep update for any who care. Assessor came to my property, was polite, but dumb as a box of rocks. We went through the plans he had, which were obviously wrong. He had 600 sq footage higher than was accurate. He will resubmit to Tallahassee (no freaking idea why county real estate taxes have to go to the state capitol hundreds of miles away, but whatever) and they'll change it. I'll also get a refund check for the past three years of over charging.

blah12345678 · May 2, 2014

Tsing Tao said:
Thanks, Blah.

Sit rep update for any who care. Assessor came to my property, was polite, but dumb as a box of rocks. We went through the plans he had, which were obviously wrong. He had 600 sq footage higher than was accurate. He will resubmit to Tallahassee (no freaking idea why county real estate taxes have to go to the state capitol hundreds of miles away, but whatever) and they'll change it. I'll also get a refund check for the past three years of over charging.

Wow, how did you get him out there so fast? And without having to file an appeal or go before the appeal board. Amazing....

Is the refund going to be worth the effort?