Kentucky tax tidbit: $5K new home credit
Maine tax tidbit: blueberry tax

Fighting rising property taxes

If you're a homeowner, this time of year is the only thing that makes your annual property tax payments at least tolerable.

For many, local property taxes are deductible as itemized expenses on federal returns.

Even if you don't itemize, you still can count some of the annual tax bill as part of your standard deduction. Remember, this year you'll have to fill out Schedule L to claim this additional amount.

Of course, a tax deduction that saves you a few hundred dollars is scant solace if you're struggling to come up with thousands to pay the property tax in the first place.

And as real property tax bills across the country continue to rise even though home values have plummeted, property owners are taking action.

Nationally, reports the Wall Street Journal, data from the National Association of Realtors shows median prices of existing homes fell 22.3 percent from 2006 to 2009.

Those declines, however, don't show up as quickly in local tax assessments and associated bills. 

Property tax map 2001-07_Tax Foundation

In fact, a recent survey by the National League of Cities found 25 percent of cities raised property tax rates in fiscal year 2009.

The reason was simple. The hikes were an attempt to offset falling tax revenues.

Fighting higher real estate taxes: There are many ways homeowners are coping with the taxes.

Courts that hear property value appeals are backlogged.

Voters are letting lawmakers know how they feel.

Some homeowners are moving to lower-tax states.

And some are simply falling behind on their property taxes.

The Tax Foundation does a nice job in tracking, compiling data and comparing property taxes across the United States.

Have your real estate taxes gone up or down? Have you applied for all available homestead exemptions or other tax-relief programs? Have you ever appealed your property tax assessment? Did you get it lowered?

Diana Ross seeks reassessment: The rich and famous aren't immune to rising property taxes. In fact, since they tend to own more expensive homes, they are hit with higher bills.

Diana Ross is a lady singing the blues about the taxes she owes on two Connecticut properties, a 12,562-square-foot mansion on five acres that the town says is worth $14.4 million and another piece of land nearby valued at $15.5 million.

The R&B diva pays approximately $168,000 a year in property taxes for the two properties, according to WebCPA.

Six years ago, Ross appealed Greenwich's assessment, won and cut her tax bill by $30,000. Now she's trying again.

Ross showed up again at Greenwich’s Board of Assessment Appeals meeting last week to contest the current valuations.

Related posts:

Want to tell your friends about this blog post? Click the Tweet This or Digg This buttons below or use the Share This icon to spread the word via e-mail, Facebook and other popular applications. Thanks!


Feed You can follow this conversation by subscribing to the comment feed for this post.

CR Mortgage

Don't you feel sorry for Diana Ross, she has to live in a 12,562 square foot mansion.

Gmac Home Loan

The tax deduction is definitely one of the great benefits of home ownership. Not only do you get a deduction but you are also building equity.

omaha ne homes for sale

Now there are a number of homeowners behind on their taxes. Some wish to sell their homes to save on taxes, but they are stuck with, given the housing market.The County collects taxes, plus interest, if the property is sold, the amount of low-interest loans.

Property in Turkey

It's really makes me happy to hear these great stories because seeing is believing. I enjoyed reading this post thanks.

The comments to this entry are closed.