Tax assessment — a loss and a win

1 comment January 18th, 2008

You can write about things but it’s way more instructive to actually go through things.

I finally had my challenge to my 2007 tax assessment by the Winnebago County Board of Review.

The Rockford Township Assessor’s office wanted to raise the fair market value of our home in Loves Park from about $116,500 to more than $130,000.

I challenged the assessment, pointing out since the beginning of 2005 only two homes in my neighborhood — not on the riverfront — had sold for more than $112,500 and none for as high as $130,000.

I was shocked when my challenge was denied. So I decided to take it directly to the board of review. My contention there was going to be my house had been raised from $102,500 to $116,500 in 2006 and to raise it again in 2007 — a year sale price increases were flat across the county and down in several parts — was excessive. I was seeking to raise it to $124,000.

Well, the first thing I learned is that the county was considering sales from 2004 through 2006. They were going back farther than I looked and not considering anything from 2007 because they are assessing your house’s value on Jan. 1, 2007. That threw me.

When I had my hearing I was encouraged to come to the final review to see how they make decisions. So I showed up and didn’t learn much since they denied my arguments almost without comment. So that was a loss.

At the same time, though, they did take up my application for a reassessment because of last year’s August flood. That also was granted rather quickly. So in 2008, I’ll be paying taxes on a discounted fair market value of about $108,000. The lower value takes into account we couldn’t use half of our house for five months.

Now, it may have been a waste of time if not for one little nugget. They strenuously argued a case where a house originally was assessed with a fair market value of $400,000. After being challenged, it was dropped to $339,000. The home owner took his case to the board of review because he wanted it lowered to $300,000 and he had paid an assessor to value his house and the private assessment valued the house at $300,000.

One of the members of the board of review argued that the house already had been lowered and didn’t want to lower it further. In the end, though, they dropped it to $300,000 because if the homeowner challenged the assessment to the state the county was unlikely to win because an independent assessment, as long as it’s a reputable assessor, carries tremendous weight.

That’s good news for me in 2009. We refinanced our house in December and had to have the house assessed. The assessment came in at $128,000. So when my notice comes around in late 2008 for what my assessment will be in 2009, I’ll be challenging to have it lowered to $128,000.

So this story is to be continued.

Follow up note. I’m still looking for feedback on real estate. If anyone — who does not work at the Register Star — reads this and emails me, I’ll take you out to eat on me at one of our fine downtown restaurants.