Property Taxes Payments and Property Tax Reduction Guidelines

If you are in a higher tax bracket in 2008 than you are in 2007, you may want to wait and pay your property taxes in January of 2008. This will help lower your total tax liability in 2008. If you are in a higher tax bracket for 2007 and expect to drop into a lower tax bracket in 2008, you may wish to pay your property taxes in December of 2007 so you can claim it on your income taxes to reduce the tax liability for 2007. Other reasons to wait or pay your taxes may also include other deductions you may or may not have in a given year.

When you pay your property taxes, you should make sure to receive a receipt. This is needed for your tax records as well as showing proof of payment if the community would ever say you still owe money on your taxes. After paying your property tax bill, you can then claim it on that year’s tax return.

Property tax reduction

If your fair market value is $105,000 and it was overly appraised, when you try to sell it, you are going to lose money and still have a balance due on a mortgage payment. If a reputable appraiser says your property is only worth $80,000 then you are not going to receive $105,000 for that property. If you property taxes are assessed for a house worth $105,000 and the property is only worth $80,000 on the market, you need to find a tax reduction and quick. You are over paying your taxes by hundreds of dollars in most cases.

A property tax reduction also comes from applying for a different status on your property tax bill. If you bought a two family home and converted it into a single-family home, you are entitled to a reduction in property taxes, only if you did not increase the value of the property. Single family and two family properties have different tax rates. You can have this adjusted by visiting the taxing authority and filling out the paperwork to change the classification of the property. Once this is accept by the committee, your property will be reassessed and a different tax rate will be used to determine your new property tax liability.

If you need to apply for a hardship exemption in your state, you must find out the specifics that are required to obtain an exemption. Hardship exemptions are not given to everyone and some states may not offer this service. The hardship exemption may qualify you for a partial exemption or total tax exemption. Your local community however determines this.

The property tax for a veteran who owns a property that is their residence can receive a discount, but they do have to meet certain guidelines. The veteran must have received an honorable discharge. The veteran must have some particle disability and be at least sixty-five or older. Residency requirements might also apply depending on your state. You can apply with your county’s tax registrar to find out if you qualify. Keep in mind that ever community has different guidelines that may be more laxed or stricter for reductions and discounts.

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