What to Keep and Where to Find Them? – Property Tax Records
Property Tax Records are records which most people find cumbersome to keep and they therefore usually throw them away. However, keeping your records can be the easiest things you will ever do. Not only should you keep your records intact, but you should also keep any other document or receipt that is related to the same. For example, it doesn't make sense to keep your property tax records but throw away the bank receipts used to pay those taxes.
Why Keep Them: The importance of keeping property tax records safe is usually appreciated when you happen to be a "victim" of regular audits. Now don't keep them just for the sake of the regular audits. Some eventualities may come that greatly demand the presence of intact records. One of these unfortunate incidents is divorce. The reason why divorce related cases usually take forever is because of the absence of such documents. The property tax records are used by the legal system when in comes to splitting of belongings.
Also, keep records of any property you buy or renovate over the years. This will come in handy when the actual value of the property is needed for a particular reason; say taking a loan or selling the property off. It also helps you in claiming the gain from the tax department when the mature period comes. Otherwise, you will find it hard to convince a financier or even a buyer that the property is worth much more than they think it is. Generally, the shortest time you should keep your copies is 15 years, but keeping them forever is even better.
Since I have been an appraiser for several years and being knowledgeable with the mass appraisal system, I have seen first hand that property owners do not understand that they have the legal right to appeal their property values and also not a clue on the procedure of property tax appeal.
Before you get started take a look at your current tax appraisal. Check measurements, square footage and any description of number of rooms or whether or not a basement is finished, etc. Make a list of any errors.
When the file is full, label on it the range of months of the records in it. Keep these property tax records in one place, say a particular drawer or a specific place that is safe and that you will easily trace. Also, remember to keep these tax records separate from other records or other documents.
Remember there is commonly a time frame in which to file a property tax appeal. Most jurisdictions have a set time every year to process appeals. So if you're contemplating an appeal to reduce your market value and possibly lower property taxes, then my advice is to find out when are you able to set an appointment. Then begin to research and prepare your case.
This brings us back to the paperwork that most people try avoiding. It is good to store your property tax records in soft copy online, but always remember to download a compressed hard copy to file.
Harris Smith is a writer on personal finance education. Her article tackles the pros and cons of home equity line of credit . A Debt Consolidation loan will change your life.
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