If you have a home, odds are, you regularly pay taxes directly to the local government or through an escrow account that your mortgage lender has set.
These property taxes help in funding public services. However, they may as well drive up monthly mortgage payments. Property taxes may range from several hundred dollars to thousands of dollars depending on the value of your home and how the local government calculates tax rates.
Fortunately, several ways can help in Iowa Property tax reduction. Some of these ways may include the following:
1. Consider Filing for a Homestead Exemption
One effective way to lower tax property taxes is to consider filing a homestead exemption. This exemption is readily available to every homeowner who uses their homes as the primary residence.
It enables them to exempt part of their property’s value from taxes. The exemption amount differs on the location of the property. But it is generally about 20% of a home’s value. In order to apply for this exemption, you must file an application with a county or state appraisal district.
2. Request for a Tax Card
Before challenging any property taxes, you must know what you are paying annually in property taxes. Luckily, you may easily find these details on a property tax card because records for property taxes are public.
Generally, your tax card will document several aspects of your home. These aspects of your home may consist of the following:
- Total assessment
- The assessed value of a home
- The assessed value of a land
- Square footage
- Improvements made
3. See Whether You Qualify for a Discount
Many assessors will give you an exemption for your homestead just for staying in your house. Senior citizens or veterans can also get lower assessments.
Again, confirm with your local or county assessor what discounts apply. If the records for assessment don’t include them, update the assessment.
4. Enlist the Services of a Lawyer
Many individuals lower their taxes successfully by enlisting the services of an attorney. Among the greatest benefits of enlisting an attorney’s services is having someone who files taxes on your behalf and beats the deadlines.
Consider finding an attorney who doesn’t charge upfront fees but bills service contingent on the first year of the tax savings. Weight this against your savings for property taxes to know whether the cost is worth it.
5. Evaluate the Value
In order to determine the current value of your home, the local government will hire an assessor to review your property. The assessor can come to your property, but they normally remotely value properties using tax rolls, software, and old records.
This is why it would be best to review the inventory your county or town has for your property. Things such as an old deck, inground pool, or extra bathroom that no long exists may raise your taxes higher than they should.
The process often involved to lower property taxes is complicated. In order to increase your chances of success, you will need to engage a qualified tax lawyer familiar with the ropes. Considering the amount of money you may save when lowering property taxes, hiring an attorney is something you can’t regret.