Do I have a basis to appeal my property's assessed value for property taxes?

Question: Do I have a basis to appeal my property's assessed value for property taxes?

Answer:

If the taxable value of the property as listed is more than 50% of the property’s market value, then you may have a basis to review or appeal the property’s assessed value.

Example #1: You bought a house five years ago for $200,000. Last year your taxable value was $115,000. If the house next door (essentially the same model) recently sold for $180,000 and your assessed or S.E.V. value is still listed at $100,000 or more, you may have a basis for appeal.

Example #2: A house sold for $200,000 ten years ago. The assessed value in the year after the sale was $100,000. Over the next seven years, the house increased in value to $300,000. The Proposal A cap limited the rate at which the taxable value increased. In 2005, the taxable value was $123,000 and the assessed value was $150,000. This gap between the assessed value and taxable value makes it unlikely that any decrease in property value would decrease the owner’s property taxes.

If the property sold in 2005 for $300,000, however, the taxable value would reset in 2006 from $123,000 to $150,000, eliminating the gap created by Proposal A. If the market value decreases thereafter, the assessed value could dip below the taxable value that continues to rise with inflation.