What makes property taxes

More sales mean an increase in the assessed value of properties in the area because, well, it's proof positive that the neighborhood is more desirable—so the properties are too. Ergo, Jeff says, your property tax bill will go up.

Most counties assess the value of homes every few years, although in some states they are reassessed annually. When your state and local governments decide to cut or fund a public service that is subsidized by property taxes, you might see that reflected in your assessment.

Maybe they're aiming to better the public school system, or the local roadways. Even if you don't use the service, you might pay for it in property taxes. Similarly, if the state decides to cut funding for those services, your local government has to pull the money from somewhere, and that could mean higher property taxes too.

New homeowners might be surprised when they get a supplemental tax bill in the mail. But for all of the potential increases, there is also the possibility of a potential decrease in your tax bill, should the opposite take place if home sales are dropping off in the area, for example. If you do find an error, it pays to bring it to the assessor's attention as soon as possible so you can get a reassessment if necessary.

Many people allow the tax assessor to wander about their homes unguided during the evaluation process. This can be a mistake. Some assessors will only see the good points in the home such as the new fireplace or marble-topped counters in the kitchen.

They'll overlook the fact that several appliances are out of date, or that some small cracks are appearing in the ceiling. To prevent this from happening, be sure to walk the home with the assessor and point out the good points as well as the deficiencies. This will ensure you receive the fairest possible valuation for your home.

You do not have to allow the tax assessor into your home. However, what typically happens if you do not permit access to the interior is that the assessor assumes you've made certain improvements such as added fixtures or made exorbitant refurbishments.

This could result in a bigger tax bill. Many towns have a policy that if the homeowner does not grant full access to the property, the assessor will automatically assign the highest assessed value possible for that type of property—fair or not. At this point, it's up to the individual to dispute the evaluation with the town, which will be nearly impossible unless you grant access to the interior. The lesson: Allow the assessor to access your home.

If you took out permits for all improvements you've made to the property, you should be fine. Exemptions don't just apply to religious or government organizations. You may qualify for an exemption if you fall into certain categories. Some states and municipalities lower the tax burden for:. Check with your taxing authority to see if you qualify for an exemption. If you've done all you can and haven't managed to get your tax assessment office to see things your way, don't fret.

You still have another option available: the tax appeal. Filing a tax appeal may cost you a small filing fee, which is paid to have someone review your appeal. The tax appeal generally requires the help of a lawyer. Your attorney will likely charge you a fee—sometimes a portion of the savings on your tax bill if your appeal is approved. Your appeal should be filed in a timely manner; otherwise, you're stuck with the bill you receive from your local tax office.

Your lawyer will go through the steps of the appeal and what information is required. In some cases, you may need to take photos and provide details on the current condition of your property.

The board will then review this information, compare it to the most recent assessment and tax bill, and make a decision. You may hear something instantly, or it could take a few months for the reviewer to come up with a decision. If the board approves your appeal, it will only lower the assessment on your home—not your effective tax rate. Although you will still be taxed at the same rate, it will result in a reduction in your tax bill. Keep in mind, though, that the appeal process is not a guarantee that your bill will drop.

It may remain the same or, in rare cases, it may increase if the reviewer feels your assessment is too low. It can be hard to balance the desire for a beautiful home with the desire to pay as little tax as possible.

However, there are some little things you can do to reduce your property tax burden without resorting to living in a dump. Avoid making any improvements right before your house is due to be assessed. Items not subject to personal property tax include intangible personal property; some jurisdictions may tax certain business personal property items but not the equivalent personal use items. If you need help navigating property taxes, check out our informative state content posts , which cover state-by-state the property tax requirements, rates, and laws.

Find an office location nearest you now. Do you need to know how to calculate a capital gain on inherited property that was later sold? If you are a senior, a veteran, or have a qualifying disability, your state, county, or municipality may also offer reduced taxes.

Check with the tax bureaus in your area to see what exemptions they offer and whether you qualify. At Noah, we believe that homeownership is a good investment. And when expected bills happen, tapping into your hard-earned home equity should be an option without resorting to selling your home or incurring more debt.

Your home is often your largest asset, and you should be able to access that wealth when you need it. A Home Value Investment is one of the few options available to homeowners that allows them to tap into their home equity without incurring more debt.

Another benefit of using a financing option like a Home Value Investment is that the funds you receive can go to anything you like. If property taxes rise, you can use home equity funds you received from Noah to pay those bills, in addition to other important goals.

A home equity agreement affects the amount of equity you have in your home. Our Homeowner Protection Program can help our homeowner partners pay unexpected property taxes, mortgage payments, or emergency home repairs. Is your forbearance period ending soon? A Home Value Investment could help prepare you for repayment. Learn more. Blog FAQs. Home Value Investment. Cash-out refinance. Reverse mortgage. Debt Payoff.