Countdown to Financial Fitness: Appealing Your Property Taxes

Countdown to Financial Fitness: Appealing Your Property Taxes: We just received our property tax assessment and, like many of our neighbors, we're in shock. I'm reminded of a cartoon illustrati...

Appealing Your Property Taxes

We just received our property tax assessment and, like many of our neighbors, we're in shock. I'm reminded of a cartoon illustrating how a house is viewed through different eyes: You see your house as you know it. The real estate appraiser sees a dilapidated shack. The tax assessor sees a palace.

Our county tax assessor thinks we live in a palace.

I used to not pay much attention to the assessment statement, which arrives each spring. I didn't really know what my house was worth—or care that much—since I wasn't getting ready to put it on the market. The figure the tax assessor provided was merely informational.

The tax bill arrives in the fall, but by then it's too late to appeal. Property owners have 45 days from the date of the assessment to protest the valuation that will be used to calculate the tax bill.

About three years ago, when the real estate market started to recover, our property assessment shot way up. I finally paid attention, and then I found out it's not that hard to appeal. There are companies that charge to file an appeal on your behalf, but the process is simple enough to do yourself and save that fee.

In Georgia, you can print a one-page Appeal of Assessment form, found online at https://dor.georgia.gov/documents/pt-311a-appeal-assessment-form. Fill in your contact information; the rest of the data can be found on your property assessment form. Start with an appeal to the Board of Equalization, the box for which there is no charge.

Under "Property Owner Comments" I write "see attached." Then I prepare a one-page narrative about why my property is worth less than the assessment.

Start with a visit to an online real estate site like Zillow and type in your address. (It's creepy how much information they have about your house.) Zillow will give you a "zestimate" of what your home is worth, i.e., a suggested asking price if you were to list it for sale. If Zillow's estimate is less than what the tax assessor says your property is worth, include it in your narrative.

Then, most importantly, look at comparable sales in your zip code. (Don't worry about homes still on the market; what matters is how much a buyer will actually pay.) Preferably the sales should have been closed within the last six months, but go back further if there hasn't been much activity. Include sales of nearby homes in similar neighborhoods, with similar square footage and similar amenities.

If you use a "comp" for a more expensive home, be sure to point out why that home is worth more than yours. Perhaps it has an extra bedroom or bathroom, a pool, or has more square footage. Maybe the lot is larger or the location is more desirable.

I also note that many of my "comp" properties have had recent renovations, such as a new kitchen, deck, or professional landscaping, whereas my house still has original flooring and appliances. (If you have done a major remodel recently, there's no need to call attention to it in your narrative—just leave this part out.) Remember the cartoon; you're drawing the picture the real estate appraiser sees (the dilapidated shack).

If the "zestimate" and a handful of recent sales of comparable homes in your area are lower than your assessment, you have a good chance of winning your appeal. I've been successful two years in a row, and I'm hoping the results of my 2019 appeal will also be successful.

In our experience for the past two years, when the property tax bill arrives in the fall, it is for approximately 85% of the total amount the county thinks we owe, and it's noted: "under appeal." Then in January, an assessor comes to look at the property (outside only) and make a final determination.

The first year we appealed, we received an additional refund from the county after the assessor's visit. Last year, we received a small bill after the appeal was finalized, but that amount plus the original 85% added up to less than we would have had to pay had we not appealed.

With just a little effort, you could save hundreds of dollars!

Have you ever thought about appealing your property taxes? I'd love to hear your comments.

Sharon Marchisello is the author of Live Well, Grow Wealth.

Countdown to Financial Fitness: Why Must Everyone Go to College?

Countdown to Financial Fitness: Why Must Everyone Go to College?: Our country is reeling from a national scandal involving wealthy parents bribing coaches and administrators at prestigious universities to...

Why Must Everyone Go to College?

Our country is reeling from a national scandal involving wealthy parents bribing coaches and administrators at prestigious universities to admit their children because these kids were unable to get accepted on their own merit. Why is that very expensive piece of paper so important?

College can be a rewarding experience, the source of lifelong friends. A degree is essential for entry into many professions. But without rich parents or a full-ride scholarship, earning a college degree can plunge a student deep into chasms of debt. And sometimes, unable to find a job that pays well enough to retire that debt for decades.

Some high-priced degrees don't prepare the student for any particular career. Thus, the graduate ends up working in the service industry, holding a minimum-wage job that doesn't require a degree at all.

Mired in all that student-loan debt, the graduate is financially unable to start enjoying the elements of the traditional American dream: owning a home, starting a family, indulging one's passions.

In Europe, high school students are directed toward the training that best matches their aptitudes and interests. Why force every child onto an academic path? It's demoralizing for those who are not suited, and it keeps them from developing skills in other fields where they might excel. Fields where good-paying jobs exist.

There's no stigma in many other countries for someone who attends two years of vocational school, apprentices to be a plumber, an electrician, a carpenter, a mechanic, etc., and then immediately goes to work in a lucrative profession, with very little debt. Why not encourage more technical training in America? Why can't it be more respectable to pursue careers where one can earn a decent living without an academic degree?

Arguments include, "But college provides a well-rounded education." "College should be a right." "Mine is the first generation to have the opportunity to go to college." However, many people learn just as well, if not better, outside the classroom. Some students don't even develop an interest in learning until later in life, after their formal education is finished. These days, there are countless opportunities for continuing education: reading, travel, public television programs, online webinars, professional organizations, special interest clubs, community colleges. All one needs is the basic foundation of reading, writing, and thinking—the skills that should be taught in the first twelve years of school.

I don't regret going to college, and I don't mean to sound hypocritical by implying that others shouldn't go. Just look at the price tag, and decide if you're getting good value for your money.

What are your thoughts on college? Should everyone go? I'd love to hear your comments.

Sharon Marchisello is the author of Live Well, Grow Wealth.

Countdown to Financial Fitness: Learn Your Foreign Currency

Countdown to Financial Fitness: Learn Your Foreign Currency: We recently returned from a trip abroad, and I'm constantly amazed at stories from fellow travelers about how they grossly overpaid for...

Learn Your Foreign Currency

We recently returned from a trip abroad, and I'm constantly amazed at stories from fellow travelers about how they grossly overpaid for services because they didn't understand the local currency. If there's one bit of homework you should do before you visit another country, find out what the exchange rate is.

It's especially confusing when you have to add lots of zeros to the currency unit to reach the USD equivalent. Local currency can seem like monopoly money. But tack on an extra zero or two, and suddenly you're handing out serious funds for tips and cab rides.

For example, we talked to a guy who thought he was tipping his bartender a generous ten dollars. After comparing notes with a local customer at the bar, he found out he'd just given the guy one hundred dollars. On the bright side, he got great service for the remainder of his stay!

When you exchange money, take a moment to look at the bills and coins you receive. Get a feel for how much each is worth compared to your home currency. Some denominations may look similar but vary greatly in value.

If the exchange rate for local currency versus your home currency is not easily divisible (i.e., two to one, three to one, ten to one, etc.), don't be afraid to whip out a calculator if you're not good at doing math in your head. We spoke to some women who'd paid three times the amount they thought they were negotiating for a cab ride from the airport into downtown Buenos Aires. (At this writing, there are approximately 38 Argentine pesos to the U.S. dollar. They'd just come from Chile, where the exchange rate is about 650 to one; they'd assumed the two currencies were similar in value.)

Sometimes it's easier and more cost-effective to pay with a credit card than to exchange money so you can pay with cash. However, many inexpensive services cannot be paid for with credit cards or foreign currency: bus rides, purchases at street markets, meals at small local restaurants, lots of taxis. If you do pay with a credit card, try to use one that doesn't assess foreign transaction fees, which can add up. Also, make sure you're clear on the amount charged. The vendor may quote the price in dollars but the charge will be entered in local currency. Verify that the amount on the slip you sign is equivalent to what you were quoted.

We had an overnight stay in Buenos Aires before boarding a cruise ship and we were able to pay for our hotel and transportation from the airport with a credit card. But when we inquired about a taxi to the pier, we were told the drivers only accepted local currency. The pier was quite close; the desk clerk advised us the fare should not be more than 300-400 pesos.

So, we set out to get cash from an ATM, which we do frequently when we travel abroad. But every machine we encountered assessed a transaction fee of between six and ten dollars. The fee wouldn't have been so onerous if we were withdrawing a large sum of money, but for the small amount we wanted, it did not seem cost effective.

After four or five unsuccessful attempts to withdraw money without an excessive fee, we decided to return to the hotel and cash a twenty-dollar bill at the desk. We knew the exchange rate would be worse, but they shouldn't charge a fee. Except then we found out our hotel did not offer currency exchange.

The desk clerk suggested he could call the taxi company and give them our credit card number, which they could charge when the ride was complete. We agreed, and he called us a cab.

En route to the pier, we verified the arrangement with the driver. Credit card number to the home office? He knew nothing about it. Frantically, he started texting back and forth with his dispatcher.

As we neared the pier, we eyed the meter, which still showed less than 200 pesos. "What if I just give you cash in U.S. dollars?" my husband asked.

"Much better," the cab driver replied. When we arrived at our destination, we handed him a five-dollar bill, and he was happy.

(When we got home, I checked my credit card statement to make sure no duplicate charge had appeared from the cab company. Fortunately, there was nothing.)

On board the ship, we played trivia with an Argentine native of Buenos Aires, and we told him the story of our cab ride.

"Ooh… you got ripped off! Five dollars!" he guffawed. "That ride shouldn't have cost you more than 100 pesos."

So we, too, were gullible, overtipping tourists. But the ride still cost us less than withdrawing local currency for the fare out of the ATM.

For more saving and investment tips read Live Well, Grow Wealth.

Countdown to Financial Fitness: Plan for Contingencies

Countdown to Financial Fitness: Plan for Contingencies: Going without an expected paycheck is a hardship for most people. I've seen statistics claiming that one in three Americans is one payc...