Issue Date: February 15, 2006

Keep your property taxes in check

By Jody Zink
Licensed Realtor in Ohio & Michigan

For homeowners, it's one thing you can count on. Like finding lint inside your pockets or needing gasoline when the price is hiked. Yes. It's your property tax bill. Just when you thought you couldn't depend on anyone...trust the taxman to pull through.

A necessary evil, property tax bills are generated to support city and county services to taxpayers. And while home values may increase, so do property tax assessments. A higher assessment means you'll pay more in property taxes.

In Ohio, it's the county auditor who is responsible for appraising each slice of real estate every 6 years to determine fair market value. County auditors are also the county's real estate assessor. In Lucas County, properties are divided into 34 different groups and then assessed
according to recent sales. The last countywide mass reappraisal happened in 2000. The figures obtained this year will be released on Jan. 2007 tax bills.

Meanwhile, what if you think you home's value is too high? It's possible. The National Taxpayers Union has estimated 60 percent of taxable residential property in the U.S. is over-assessed. And the American Homeowners Association says only 2 percent of those assessments are appealed. Among those, as many as 75 percent result in a tax reduction.

Now nobody's perfect, and the tax assessor doesn't claim to be either. Errors happen. Maybe the number of bathrooms and bedrooms is incorrect. Maybe the square footage is off. Sometimes things such as non-existent garages are factored in and unfinished basements are counted as finished. Appraisers typically aren't invited inside your home to learn these things. Study your assessment report for errors and compare your home's value with that of similar ones in your neighborhood. Little inaccuracies can have a big impact on your tax bill.

If you found yourself in the market to sell your property, would you sell it for the assessed value? Could you hope to arrive at such a sale price? If not, it may be time for a heart to heart with the staff of your friendly, neighborhood county auditor. The deadline to file an appeal is Friday, March 31, 2006.

The county auditor's office has even set up an Appraisal Hotline specifically for your questions and concerns. Call 419-213-4433 Monday through Friday from 8 to 5. It may not be as difficult as homeowners fear. And making sure the county's data is correct will help you be prepared to talk about your value.

To build a convincing appeal, focus on the facts. A recent purchase agreement, photos, a bank appraisal or the original mortgage on the property are good starts. And for your convenience coming up this spring, the auditor's office will be coming to you. House and home “road shows” will be set up around the city for informal inquiries.

Following the 6-year mass reappraisal, a triennial update will happen in 2009 to compare that reappraised value to the current market. The comparison will show if there's a change in the market. If so, an adjustment in property values could happen on a percentage basis. At which point, it may be good to make sure you're not paying more than your fair share.

Jody Zink is a licensed REALTOR in Ohio and Michigan with the Loss Realty Group. Her column appears every other week in the Toledo Free Press. She can be reached at jody@jodyzinkrealtor.com or 419-725-1881.