The assessed value ascribed to a property is supposed to reflect its fair market value. Anyone looking at the dollar value of their assessment would likely scratch their heads in bewilderment. “Clearly the number that appears on tax bills and public records cannot be right.” That’s where the Residential Assessment Ratio (RAR) comes in. Each town and village in Westchester County has a RAR which when divided into the assessed value should indicate the true market value of that property. The RAR varies each year but so, of course, does the value of property. We have all been acutely aware that property values have been steadily declining in almost every Westchester community.
So, what if you do the math and divide the assessed value of your property by the RAR and are amazed at the value at which your town says your property would sell? (To find out the current RAR for your town call your assessor’s office.) Do you think that number is too low? Too high? Does it bear any resemblance to reality? It is important to know how close to reasonable the municipality’s version of fair market value is relative to the “real” fair market value. For that you can hire an appraiser or ask your trusted Realtor to do a market analysis. If that analysis falls close to 10 % lower you should seriously consider grieving your taxes. If your property has been on the market at a price close to the municipality’s version and not sold, especially over an extensive period of time, you have additional evidence that you are unfairly taxed. Ultimately a contract of sale for a much lesser amount is substantive evidence of over-assessment.
Incidentally, if you do the numbers and find that your house would likely sell for much more than the predictor of the municipality, you are under- assessed. I am told by attorneys who do a great deal of tax work, that one third of properties are appropriately assessed, one third under–assessed and one third over-assessed. The failure of Westchester County to re-evaluate all its taxable parcels over an extended period of time has lead to great inequities in taxation. However, initiating the grievance process WILL NOT prompt an increase in your assessment.
What does grieving property tax involve? There is a process in New York State called Tax Certiorari and it is frequently handled by attorneys that specialize in that field. However, you may most certainly try on your own. Attorney fees are typically contingent upon their success and generally are one half of the tax savings for the first year. The period during which one may grieve taxes is very limited for the Towns of Westchester; this year from June 1 to 21. Applications along with supporting evidence are filed with your town’s assessor’s office. The Town assessor may decide to re-assess your property. If not, you appear on grievance day and make your case before the Board.
You might again be denied! Municipalities have costs, many of which are unfunded mandates. NY State, in the midst of its fiscal crisis will most assuredly offer less help to communities to meet their costs. It is not surprising that tax review boards and assessors are reluctant to lower the amount by which an individual homeowner is assessed. They do not want to collect less tax from anyone at a time when revenues are shrinking everywhere. That is an explanation but not a justification!
What is your recourse if you’re denied here, too? There is a small claims assessment review (SCAR) to whom you petition. This can be done electronically. For more information go to http://www.westchesterclerk.com/index.php?option=com_content&view=article&id=19&Itemid=214
You may have to live with high taxes but they should not be unfairly high!