Pros/Cons of disputing tax assessment
What are the pros and cons related to disputing my tax assessment on my property? Is it better to do it to pay less tax, or will that potentially lower my appraisal when I decide to sell?
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Benjamin Aaker
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- Rental Property Investor
- Brandon, SD
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Hi Jeremy,
I'm dealing with this on my primary residence right now and my wife serves as township clerk. I'm not an accountant or lawyer, though.
In my area, South Dakota, the assessed value has almost no impact on the sale prices. They want to keep assessed value around 90% of sale prices and when the sale prices go up, then the assessor argues that the assessed values are too low. They then give a blanket increase in assessments to get to that 90% without anyone actually doing an appraisal.
I would have no fear that disputing my assessment would have any effect on sales price. In fact, that's an argument that the assessor uses when people dispute: "You're telling me that if you sold today, that you would sell it for the price you're telling me it's worth right now?"
If you dispute, you will likely have to pay to have an appraisal done and you may be shocked at how much your property value has increased. The tax savings might not be a whole lot, but it does depend on your area. If you believe they valued your place too high, the custom here is to bring a bunch of sale comps to the assessor when you dispute. This way you have a cogent argument rather than simply a feeling that your taxes are too high. Let us know how it goes.
I'm dealing with this on my primary residence right now and my wife serves as township clerk. I'm not an accountant or lawyer, though.
In my area, South Dakota, the assessed value has almost no impact on the sale prices. They want to keep assessed value around 90% of sale prices and when the sale prices go up, then the assessor argues that the assessed values are too low. They then give a blanket increase in assessments to get to that 90% without anyone actually doing an appraisal.
I would have no fear that disputing my assessment would have any effect on sales price. In fact, that's an argument that the assessor uses when people dispute: "You're telling me that if you sold today, that you would sell it for the price you're telling me it's worth right now?"
If you dispute, you will likely have to pay to have an appraisal done and you may be shocked at how much your property value has increased. The tax savings might not be a whole lot, but it does depend on your area. If you believe they valued your place too high, the custom here is to bring a bunch of sale comps to the assessor when you dispute. This way you have a cogent argument rather than simply a feeling that your taxes are too high. Let us know how it goes.