Challenging Your Tax Assessment

Hello,

I hope this post finds you well in this snowy season. If looking for more information about my offer to charity, click here.

I often get asked about taxes, how does one go about lowering them in Northampton and Lehigh County.

**Please note that all of the following advice is by no means anything more than an opinion based off of my observations. Be advised it is wise to talk to a tax professional, also a Lawyer, to look at the scope of your Real Property situation. This post is more anecdotal to give the consumer an idea of what questions to ask upon meeting with a professional.

First- Your own assessment

The tax assessment of one's home, or any other type of Real Property, is the most important number in the process of refuting taxes. If one buys a home for $200,000 and the assessment is for $300,000, then from a preliminary glance; it would seem a tax reduction should occur. Typically, tax reductions are not directly proportional to sales price. Assessed values are subjective, and when homeowner's challenge their taxes, they are challenging the methodology of the county's tax assessment. This puts the burden of proof on the county.

Northampton County's tax re-assessment was done in 1995

Lehigh County's tax re-assessment  was done in 2012

Second- Your neighbors assessment and when one can challenge their taxes

Upon the purchase of a home is not the only obvious time a person should, and can, analyze their tax assessment. If a neighbor buys a similar home, for less than another neighbor's assessed value, then the latter neighbor might have a case to reduce his taxes . In Northampton and Lehigh County, a person can challenge his taxes once a year. Please call the tax office to find out more details, a person is welcome to represent themselves while challenging their taxes in front of the tax board.

Third-- When it makes sense to contact a Realtor

I have suggested that it makes sense to challenge one's taxes if  a sale price (or Market Value) of Real Property is below an assessment value. If in a local area, homes are consistently selling for less than the assessed value; then getting the public documents stating so, helps a lot. A Realtor can assist in getting these comparables, the more recent the better. Asking a Realtor to do a free Comparative Market Analysis (CMA) may be advantageous.

Fourth- Dynamics further explained

If possible, look for Real Property that is as similar as possible to one's own property. This includes bedrooms, bathrooms, acreage, topography, zoning, present us, sewer, water, construction and anything else.

Fifth- Examples that may or may not reduce taxes

It is widely known that Dryvit Stucco had installation issues when it started to become prevalent in the early nineties. I have not seen it argued in front of a tax review; however, this is something that could, and in my opinion, should affect value. Tax assessments are not scientific, so putting the burden of proof on the tax review board should be the objective of the board.

If you want to discuss this with me, please, get in touch

Stephen

stephen.weinstein@foxroach.com
484-393-2305