Experience with applealing Property Tax and receiving refund?

Question

Does anyone have experience appealing the property value of their investment property and receiving a refund IN Memphis?  If so, please share your experience.  Did you use a company?  Did you go through the process yourself?  Did you pay your property tax and then get a refund?  How did you submit for a refund?  How long did it take for the refund to come?  And most importantly, what percentage of money did you get back?

Douglas Skipworth · Answer

@Mel Hayes and @Patrick Soukup,

I just remembered that my friend Joe Kirkland, a closing attorney with CloseTrak in Memphis, wrote the following article early last year about appealing property taxes in Shelby Co.  It's an excellent resource.

https://www.memphisinvestorsgroup.com/content.aspx?page_id=2507&club_id=760095&item_id=522

Douglas Skipworth · Answer

@Patrick Soukup,

I don't know anything about appealing taxes in your area, but my guess is that a third party appraisal documenting the recent sales price would be a great determination of FMV.  Good luck!

Mel Hayes · Answer

Thank you Doug!

Douglas Skipworth · Answer

Hi, @Mel Hayes.

I have appealed hundreds of properties for both myself and our clients over the years.

There are two main items you have to do.  First, you must submit your appeal with the Shelby Co. Assessor's office before the deadline each year (around June 30).  Secondly, you must pay your taxes when they are due (City by August and then County by February).

If you are successful in getting a reduction of your Assessed Value, which lowers the taxes you owe, the City will send you a refund on your over payment.  Usually, all this happens before the County taxes are due, in which case the County will send you a revised tax bill with the reduced amount.

I know this can be a bit overwhelming/confusing your first time, but it's really a pretty simple process once you learn the ropes.

The hard part is convincing the Assessor that your value should be lowered!

Patrick Soukup · Answer

I'm out of Fort Collins @Douglas Skipworth and @Mel Hayes -

Fort Collins it is the FMV, but in reality, if it just sold is the purchase price the FMV? If there have not been any upgrades?

Yeah, I will be sending in a request to lower the assessed value early 2019.

Douglas Skipworth · Answer

If you bought a property in Shelby Co. in 2018 for less than its Assessed Value then you can appeal the 2019 value by 6/30-ish/19.  If you send me the address in a private message then I can walk you through the detailed steps to appeal.

Mel Hayes · Answer

I think each state is different.  Did you buy in Memphis?  In Memphis purchase price has very little to do with it.  Its more about the condition of the property and the FMV of the property.

Douglas Skipworth · Answer

@Mel Hayes,

Always pay your tax bills when they're due.  Worst case, it'll be an over payment towards next year if you get a reduction.  Mostly likely, if you've paid the bill and then get a reduction, they'll send you a refund.

If you don't pay your tax bill when it's due the government charges 1 and 1/2% per month plus penalties and fees.  It's very expensive and adds up quickly.

I would think that your local property manager should be able to assist you.  Appealing the Assessed Value is a very common practice here.

Mel Hayes · Answer

Thank you Doug,

So After I get the bill, I don't pay the bill right away?  I appeal first, then get a new bill?

Experience with applealing Property Tax and receiving refund?

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