Understanding the Tax Appeal Process Key Considerations for Homeowners

When a homeowner receives a property tax assessment that seems too high, it can feel overwhelming. Property taxes affect your monthly budget and long-term finances, so understanding how to challenge an assessment is crucial. The tax appeal process offers a way to ensure your property is fairly valued and that you are not paying more than necessary. This guide walks you through the key steps and important points to keep in mind when appealing your property tax.

Homeowner preparing for a property tax appeal

What Is a Property Tax Appeal?

A property tax appeal is a formal request to your local tax assessor or board to review and possibly lower your property’s assessed value. This value determines how much property tax you owe. If you believe the assessed value is inaccurate or unfair, you have the right to challenge it.

When Should You Consider Filing an Appeal?

You should consider an appeal if:

• Your property’s assessed value increased sharply without a clear reason.

• Comparable homes in your neighborhood have lower assessed values.

• There are factual errors in your property description, such as incorrect square footage or number of bedrooms.

• You have recently made changes that reduce your property’s value, like damage or zoning changes.

Steps to Prepare for Your Tax Appeal

1. Review Your Assessment Notice Carefully

Start by examining the details on your assessment notice. Check for:

• Property size and features

• Recent sales data used for comparison

• Assessed value versus market value

  
  

Errors in any of these can be grounds for appeal.

2. Research Comparable Properties

Look for homes similar to yours in size, age, and location that have lower assessed values or recent sale prices. This data strengthens your case by showing your property is overvalued compared to others.

3. Gather Supporting Evidence

Collect documents such as:

• Recent appraisals

• Photos showing property condition

• Repair estimates if your home has damage

• Sales records of comparable homes

  
  

This is where an appraiser can help. They can provide comps or an appraisal to submit to the board. If the appraisal is submitted, the appraiser has to be present to speak on behalf of the appraisal in the hearing

4. Understand Local Appeal Procedures

Each jurisdiction has its own process. Some require you to submit forms online, others need in-person hearings. Find out:

• Where and how to file your appeal

• Required documents

• Hearing dates and procedures

  
  

Example:

In Bergen and Passaic Counties the deadline to submit is April 1st.

There is also a 15% cushion the assessor receives. If you appeal, your value should fall below the towns value by more than 15%

The time period is 12 months prior to October 1st of the year you are appealing.

Contact your local tax assessor’s office or check their website for details.

Bergen County: https://bergencountynj.gov/faq/tax-appeals/

Passaic County: https://www.passaiccountynj.org/residents/board-of-taxation/tax-documents-and-information/-folder-121#docfold_286_2361_911_121

What Happens During the Appeal Hearing?

If your appeal proceeds to a hearing, you will present your evidence before a review board or assessor. This is your chance to explain why your property’s assessed value should be lowered.

Tips for the hearing:

• Be clear and concise

• Focus on facts, not emotions

• Bring copies of all evidence

• Be prepared to answer questions

  
  

The board will consider your evidence alongside the assessor’s data before making a decision.

Common Mistakes to Avoid

• Missing deadlines: Appeals are time-sensitive. Mark your calendar.

• Lack of evidence: Unsupported claims rarely succeed.

• Ignoring local rules: Follow the exact procedures to avoid dismissal.

• Overestimating your case: Be realistic about your property’s value.

• Not attending the hearing: Your presence can influence the outcome.

  
  

What to Expect After the Appeal

After the hearing, the board will notify you of their decision. If your appeal is successful, your property tax bill will be adjusted accordingly. If denied, you may have options to escalate the appeal to a higher authority, depending on your location.

When to Seek Professional Help

If the process feels complex or your potential savings are significant, consider hiring a property tax consultant or attorney. These professionals understand local laws and can build a strong case on your behalf.

Final Thoughts on the Tax Appeal Process

Challenging your property tax assessment can seem daunting, but it is a valuable tool to ensure fairness. By carefully reviewing your assessment, gathering solid evidence, and following local procedures, you increase your chances of success. Keep deadlines in mind and prepare thoroughly for any hearings.