Thursday, June 4, 2009

Assessments Draining Your Wallet Find Out Why

By Valerie Faltas

In addition to your basic property taxes, if your property tax bill seems unusually high especially during this housing crisis you may have a Special and/or Direct Assessment on your home. Depending on the area your home is located, there may be charges necessary to pay off any voter-approved general obligation bonds or other indebtedness, special assessments, or direct levies. For example, a Direct Assessment may be applied to your property if voters decide to establish a sewage system in a neighborhood that is older where most of the homes use septic tanks. The direct assessment is used to cover the cost of this improvement to the community.

Normally, the direct assessment would be applied over a period of several years so the voters are not overwhelmed by the cost of the new improvement to their community. Special and Direct Assessments have a specific purpose, a specific improvement to a community and will only last as long as was determined to cover the cost of the community improvement. Typically, such indebtedness results in a small fraction of a percent increase in the tax rate.

Direct levies are applied on the property tax bill by the county tax collector on behalf of the local levying agency or district, not on behalf of the assessor, auditor-controller, and/or the county tax collector divisions. Remember, that Special and Direct Assessments are based on voter approved indebtedness so if there is any dispute it has nothing to do with the Office of the Assessor. For more information, or if you disagree with a special assessment against your property, you must contact the levying district directly. Generally this information is on your property tax bill.

It is not wise to refuse to pay a property tax bill that contains the special or direct assessment, even when the direct levy amount is under review. Keep in mind that even if you disagree with your property tax bill it is always wiser to pay the bill and get refunded later than to have a lien against on your residence. The processes to remove a delinquent property tax bill and all of the fines, need numerous signatures and forms within the Assessor and Tax Collector and is pretty messy. So keep it simple, pay your property tax bill, any exception to this would be an extreme case.

About the Author: Valerie Faltas, Property Tax Expert has been involved in all facets of real estate for over ten years including assessments, appraisals, estates and trusts, investing and much more. She is a Certified Property Tax Appraiser, Licensed Residential Appraiser and a member of the International Association of Assessment Officers. As a real estate investor and advisor she is well versed in all aspects of real estate. To contact Valerie Faltas go to her website: www.propertytaxlittleblackbook.com.

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