Property Tax Appeal Letter
Property tax is the tax imposed on the possession of a certain property. It is a tax imposed by the municipal corporation upon the owners of the property within their jurisdiction based on the market value of such property. It is also called the mileage tax. The property taxation system differs between countries and jurisdictions.
There are three types of properties that are liable for taxation. They are land, personal, and improvement to land. The land defines the area or plot, personal is the movable objects that you use it on that particular land, and improvement to land refers to the structure that you build on the land. Under a property tax system, the state performs an appraisal on the monetary value of each property, and tax is assessed in proportion to that value.
There is a difference between market values for property tax purposes and market value for business or investment purposes. The income from the property is not included in assessing the property tax. It is rather the actual market sale value of the property, which is considered in assessment.
Sometimes, your property might be assessed higher than the other similar property. This means you will have to pay a higher property tax than the other similar property. This treatment in itself is fair enough to file a property tax appeal letter. Before applying for appeal against property tax, it is advisable to consult a property tax lawyer or a tax consultant.
Property Tax Appeal Letter Sample
City, State, Zip Code
Department of Property Affair
City, State, Zip Code
Subject: Request to make a correction in the assessed rate
I am writing this letter to appeal against the property tax assessment of my immovable property located at (address).
This property was just a land of 2000 sq. ft. inherited through our ancestors. We had been regularly paying the property tax that was assessed during our ancestors' time. Last year, I build an immovable property on this land in the form of a building. The build up area of the structure is 1200 sq. ft. It has two bedrooms, one hall, kitchen, toilet and a bathroom.
When I received a statement of the assessment, I found it over assessed. According to your assessment, the calculated market value comes to $300,000. Whereas, the same type property in our neighborhood is assessed to $200,000. This is a huge difference both in terms of market value and property tax. This assessment would force me to pay extra $7,000 as property tax.
I believe some serious error is been committed in assessing the property tax. The value of my home should be at par with $200,000. I, therefore, appeal to you to make the changes in the assessed value accordingly. Please call me if you need to talk with me personally.
Sometimes, you may also need to appeal for refund of excess amount paid in property tax. Make sure to file your property tax appeal with the local government or municipality. This sample of a property tax appeal letter is written to appeal against the over assessed value of the property.