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8 Ways To Lower Your Property Tax Bill
Property tax is a hot button issue that never
fails to get people up in arms. Taxes have been on the rise
for years; outpacing inflation in most places; and the increased
taxes have forced long time residents out of their homes, especially
in tourist areas or wealthy areas like beaches or big cities.
On South Carolina’s Sullivan’s Island, families who have lived
on the island for generations and who help rebuild the community
after the devastation of 1989’s Hurricane Hugo are now being
forced to give up their homes to developers or wealthy newcomers
and head inland, because they can no longer afford to pay the
taxes on the family home. The scene is being replayed over
and over again across the country. With out of control property
taxes now the norm, can you ever get your bill under control?
There are eight simple steps you can take to help take the
bite out of your tax bill and bring your property taxes in
line.
First, you need to know your enemy. Property
taxes are a state government issue, and each state has
its own way of setting
their tax rates. Know who is responsible for the taxes in your
state, how they are coming up with the rates, and where the
money is going. This information may not sound like such a
useful way of reducing your tax bill until you hear the second
step in getting your property taxes down; challenge your property
assessment! Tax expert estimate that at least 60% of tax payers
are paying rates that are based on over assessments of their
property’s worth. Fighting your state’s tax officials might
not sound like a walk in the park, but it’s really not a difficult
process. Each state has its own appeal process; make a call
to city hall, find out what you need to do, and go for it.
One caveat about going down this road, though; shady tax advisors
have begun offering to fight the state for you in exchange
for a commission on your return if your taxes are lowered.
Don’t do it. It’s illegal for them, and trusting the wrong
person with your taxes is playing with fire.
Step
three is paying your property tax early. If you get your
bill in November, pay it before the end of December even if
it’s not due until June. That way, you can claim it on your
federal income taxes as a deduction. Step four is to make improvements
to your home to make it more energy efficient. Some states
offer tax credits for these improvements, but even if your
state doesn’t, the federal government does, and you’ll at least
be able to make some of the money you spent on your property
tax back. Step five is, ask around. Are your neighbors paying
significantly less than you are? Then they must know about
a deduction you don’t. Make sure you claim every penny to which
you are entitled. Step six involves making your property a
dual usage property. Set up that home office, and then grab
yourself a deduction for having an office in your house. Tax
saving idea number seven is opening your home up to charity.
Allow a charity group to hold a meeting in your home once a
month, and deduct your charitable giving from your bill.
Step
eight is one of the most important - get active. If property
taxes are getting too high, too fast, campaign against them.
Get your neighbors involved and demand politicians do something
about the growing tax bills. In the long run, this is the best
way to keep your property tax bills in line.
# # # # # SolveYourProblem.com : 2007
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