Four Compelling Reasons to Appeal Your Property Tax Assessment
As a partner in Lake County’s largest tax appeal firm, Lake County Appeal, LLC, I am often asked if it really makes sense to appeal one’s property tax assessment.
The thought process for some taxpayers is to pay their fair share of taxes and move on with life. Some taxpayers didn't even know they could appeal!
The simple answer to that question is that due to the current economic environment in which we find ourselves, almost every property owner in Lake County should appeal their property tax assessment. The reasons for my answer
are many but the most compelling are:
1) Lake County property owners are currently burdened with the 15th
highest property taxes in the nation. Our property tax bills in Lake County are
413% above the national average. The situation is untenable and an appeal sends the message that we’re not going to pay a penny more than we have to on our tax bill.
2) Nationally, about 70% of all real estate properties are over-assessed yet only 2% of property owners ever appeal their over-assessment. Last year, about ten percent (10%) of Lake County property owners appealed their assessment. Even though we are protesting in record numbers, that still leaves a large number of property owners who are not appealing their over-assessment.
3) In this economy, the appeal process is tilted in favor of the property
owner! In this declining environment the bar is set higher for the assessor than it is for the property owner when establishing the value of a property. Assessors must use the last three (3) years of sales data when calculating your assessment. However, when arguing a case to the Board of Review we only need to establish the value of the property as of January 1st of the preceding tax year. So as prices
bump along the bottom and get lower, the process actually favors the property
owner. As one of Lake County’s Township Assessors stated in a recent newsletter, people who don’t appeal…”Will see an unfair increase in their tax bills as the tax burden is shifted from the “complainers” to the “non-complainers”. The final result is an unfair shifting of the tax burden to those who do not (appeal).”
4) While it is relatively inexpensive to file an appeal, the process can be
quite intimidating. The process is opaque and fraught with twists and turns that only an experienced and professional appeal firm can negotiate. A property owner can file an appeal on their own but I liken it to walking blindfolded into a sawmill. And what is your time worth? It takes quite a bit of time, energy and experience to do the in-depth research, gather all the requisite data, prepare an intelligent, cohesive and professional appeal, attend the hearings and argue before the Board of Review.
Mark A. Perlman,Partner
Lake County Appeal, LLC
847.790.7400
forest barbieri
7:34 pm on Wednesday, August 15, 2012
Obviously this is a not so veiled advertisment for the services of appealing your tax bill for you. The lawyers then take a large chunk of any amount they may save you ususally over a 3 year period with the largest being the first year.
Appealing your taxes is a SIMPLE and easy task that may take you all of 15 minutes online and then a quick stop into Morraine County offices right here in town. There is little that a lawyer can offer that any normal person cannot do on their own in few minutes except bill you:)
Mark A. Perlman
10:46 am on Thursday, August 16, 2012
Forest:
We are neither lawyers nor do we "take a large chunk...over 3 years".
I would take issue with your statement that it is a simple and easy task for most property owners. Most people have neither the time nor expertise to deal with the process. My experience, in talking with many of our clients, is that the process is time consuming and frustrating.
Me
10:52 pm on Wednesday, August 15, 2012
No wonder Patch is going broke. They accept these posts that are no more than unpaid advertising.
Richard Heineman
9:02 am on Thursday, August 16, 2012
They say without proof " Nationally, about 70% of all real estate properties are over-assessed yet only 2% of property owners ever appeal their over-assessment.". I do not believe this and more importantly it has nothing to do with Highland Park. This is an scam that the patch has accepted as a blog. Are they going to be liable for the money that these people extract from consumers?
Mark A. Perlman
10:39 am on Thursday, August 16, 2012
Richard:
I pulled that number from an article in US News and World Reports but I am unable to locate it now. The National Taxpayers Union however, recently stated that over 60% of all homeowners are over-assessed and that less than 5% of the property owners ever appeal. It was not meant to imply that that is the case in Highland Park and I apologize if that is what was taken away from what I wrote. (It very well may be the case in Highland Park but there is have no evidence to that effect.) I will be more careful in the future.
Additionally, there are many, many reputable firms that can, and do, assist property owners with their tax assessment appeal and I recommend that homeowners who are interested in finding out if their property is over-assessed in this environment contact one of the many appeal firms that do a fine job.
Richard Heineman
9:07 am on Thursday, August 16, 2012
I meant, appears to be a scam.
Walter White
9:42 am on Thursday, August 16, 2012
I've used this company and they are legit. They were successful in reducing my taxes and they only take 25% of the first years savings.
Richard Heineman
9:57 am on Thursday, August 16, 2012
I stand corrected, but still think that Forest's comment applies
forest barbieri
5:10 pm on Thursday, August 16, 2012
Mark:
With the economy we have had over the last few years, remembering that your tax basis is a year in arrears, most residential cases basis for appeal is that the accessed valuation no longer accurately reflects the lower home value
.
Accessments are generally about 33% of market value as a guide in your ability to get a reduction.
This can easily be supported by researching recent sales in your area as well as current actual for sale asking prices versa a few years ago. This is a simple google search which will give you several sites providing the information. Print out those thaqt support your claim. In addition, a quick read of the Morraine County Accessors web page reveals information relative to available deductions such as Senior, Homestead et al.
Finally, you fill out a form (available online), submit it to or at the Morraine County Accessor office, 777 Central Ave, HP, IL 847.432.2100. They are very helpful and can easily answer your questions or guide you in acomplishing this.
In this process, very little "expertise" is needed and you do not need to give 25 - 35% of your savings plus "retainer" fee to a lawyer doing the exact same thing. Not complicated at all and very little time will be spent on this process. If it were complex or difficult, Harvard Law School would have classes for appealing residential real estate tax. They don't:)