Property Taxes Higher in Huntsville

[Murali Jesudoss]

Hello Team,

I just closed a property in Huntsville, AL and observed that the property has unusually little higher taxes than other homes. I noticed that most of the SFH with 3/2 are in the range of 400-500 per year with price point around 100K. The owner had this purchased for 85K or so in 2018 and from 2019 they are paying around 800+ per year. Current year quotes 920+ or so. I just closed this for 120K or so. I am wondering if this would go even higher.

Anyone has any insight on why this property alone would be double tax compare to other homes in the area? Also, any tips to challenge this with the county? Is it worth doing or will it backfire? Thanks!

[Michael S.]

@Murali Jesudoss - the $400 to $500 range per year are Alabama homestead exemption rates - aka owner occupied properties.  In Alabama, your primary residence has a discounted rate via the homestead declaration.  

The higher rate of $800 to $1000 for the similar properties would be for non-homestead properties, such as rental/investment properties.  

There is nothing to challenge with the county on this, as this is routine policy here.