Property Tax Appeal

The Relief Measures Provided By The Governments To Lower Property Tax

Property taxes are one of the most unpopular taxes in the US. In recent years, property values and as a result property taxes have risen nationwide. Therefore, local and state governments have devised certain measures to lower property tax to a certain extent. Such measures are in the form of various property tax relief programs. The relief programs include assistance to property owners through credits, circuit breaker programs (or property tax deferral), and exemptions.

The governments' property tax reduction programs include those designed to limit tax growth through imposition of caps on property tax rates and property assessments. Even the property taxes themselves have been made subject to caps.

Local and state governments have provided certain property tax relief measures for both business property and personal property owners. These include circuit breaker programs that provide credits or rebates to certain category of homeowners and renters. The circuit breaker programs are available in thirty three US states and the District of Columbia. Under these programs, automatic tax relief is available to designated categories of property owners as soon as the property taxes reach a certain critical level.

The level is connected up with the household income. The circuit breaker relief in property tax is no longer available beyond a certain level of household income. The relief is applicable only to certain category of homeowners. Such homeowner categories include those with low-income, senior citizens, disabled citizens and veterans. Such categories also may include renters in certain states.

The total amount of property tax relief provided under the circuit breaker program (as envisaged by the governments) is designed to be contained by income caps and phase out rules. The relief is granted through direct rebates to households and tax credits to property owners against income taxes imposed by states. Circuit breaker relief is not available to homeowners bound by Texas property tax statutes. It is however available to homeowners bound by California property tax laws.

Homestead exemptions or equivalent homestead credits are also provided to property owners. These have a homestead property tax lowering effect as the exemption amount or the equivalent credit amount is to be deducted from the assessed property value. Homesteads are properties in which homeowners and their families reside. The exemption provides no benefits to renters to reduce property tax.

Forty US states and the District of Columbia offer homestead exemptions, whereas fourteen states offer equivalent homestead credit. Homestead exemption is available to homeowners who are senior citizens and disabled and whose income is less than a certain cap. The exemption is also available to disabled veterans regardless of their age.

Sometimes, the above tax relief classifications may not have been properly applied by the government assessors to assess the value of the properties of owners. Therefore, the governments offer the remedy of property tax appeal to property owners to lower property tax for such cases in which the property assessments are faulty. The burden to prove the fault is on the property owners.