Receiving a new tax assessment of your residential or commercial real estate can be an exciting and stressful experience. Although the tax assessment numbers are nowhere near as accurate as an appraisal or market determination of the value of your property, evaluating the value that the state determines your property to be worth can certainly give you an idea as to how your investment is performing. Because the state performs so many tax assessments each year and uses very broad indicators to estimate the value of the property, the assessed value of properties can be extremely inaccurate.
If the state assesses your property for an amount that is less than you believe it is worth, it may cause some stress, as your assets may not be as valuable as you thought. This stress probably isn’t warranted, however, because the state assessment is used only to determine how much in property tax you owe on the property. If the state undervalues your property, don’t be offended, it’s probably best to simply pay the lower-than-expected tax bill. You can always obtain an appraisal or do market research to determine what your property is actually worth.
When the state has overvalued property in a tax assessment, it presents more of a problem. If the tax assessment of your property is excessive, it could result in tens of thousands, or more, of unjustified tax increases that you must pay. The good news is that tax assessments can be appealed. Rhode Island General Laws Section 44-5-15 sets forth the procedures for appealing a tax assessment. When followed properly and if there is a factual basis for the appeal, pursuing an appeal could save you thousands in property taxes.
The deadline to start filing an appeal for the 2021 tax assessments is January 31, 2022, with the final documents due by March 15 of this year. Because of the severe economic impact that the Covid-19 pandemic has had on some businesses and real estate holdings, the 2021 assessments may be even more inaccurate (and inflated) than in years past. Because of this, property owners should seriously consider appealing any tax assessments that seem excessive.
Are You Interested in Appealing a Tax Assessment?
The procedure for appealing a tax assessment amount can be complicated, with several document requirements and deadlines that must be met before the tax assessor will even consider your appeal. You don’t need to navigate this tough procedural landscape alone. The qualified Rhode Island real estate tax attorneys at Bilodeau Capalbo have successfully helped our clients reduce their tax burdens by appealing assessed values using the procedures set forth by Rhode Island state law. Our experienced attorneys can handle all of the paperwork, deadlines, and possible hearings that may come along with your appeal. If you are looking to avoid paying excessive property taxes this year, reach out to one of our attorneys and we can take a look at your case. Remember, the first documents must be filed before January 31, 2022, so time is of the essence. Contact us to schedule a free consultation with a qualified Rhode Island real estate attorney by calling 401-300-4055 today.