West Springfield Board of Assessors reduces property tax bills for Verdi Club

 

The Board of Assessors recently granted property fiscal 2012 tax abatements to both the Verdi Club and the Tatham Memorial Club after already awarding tax relief to the Elks Club and the Dante Club.

Those actions have allowed Mayor Gregory C. Neffinger to make good on a campaign promise to give those four social club property tax abatements.

While running for office last year, the mayor said he would abate the property taxes for the four social clubs, all of which sought abatements after receiving property tax bills for the first time last year.

The Tatham Memorial Club, the Elks Club and the Dante Club had their tax bills reduced based on the amount of charitable use of their facilities as well as their charitable activities.

The Board of Assessors also determined that the Elks property was overvalued and the Verdi Club got an abatement based on its parking lot being overvalued.

Neffinger said Wednesday that he is satisfied with the board’s actions.

“My biggest concern was that the clubs get a fair bill and the Town of West Springfield treat them in a way that is thorough, accurate and comparable to other cities and towns. I feel that has happened,” the mayor said.

Meanwhile representatives for neither the Verdi Club nor the Tatham Memorial Club were available for comment Wednesday.

The Tatham Memorial Club got its taxable valuation reduced from $268,400 to $201,300, lowering its tax bill from $9,565.78 to $7,174.34, according to Principal Assessor Hans Doup.

The Verdi Club saw its property tax bill reduced by $965.84 to $9,002.66 based on having its taxable value reduced from $252,600 to $225,000, according to Assessors Department records.

The Elks Club got its tax bill reduced from $25,546.65 to $6,627.97 based the amount of charitable use of the property as well as the condition of the property. The Dante Club saw its tax bill halved by $8,977.71 based on its charitable use.

Doup pointed out that the new values are subject to certification by the state Department of Revenue.

Pocopson tax collector shuts door

Township officials say they don’t think there will be major disruptions after sudden Centax closure

POCOPSON — Township officials say they don’t expect any major disruptions after the sudden closure of Centax, the company that had been collecting property taxes for the township, on Friday afternoon.
Centax, which had been in litigation for failing to collect and distribute property and earned income taxes for various municipalities and school districts, abruptly closed its doors Friday and transferred the township’s account to Berkheimer Tax Administrator Inc. Berkheimer already collects taxes for the Unionville Chadds Ford School District, while the township’s earned income tax is collected by Keystone. Berkheimer also collects the township’s local services tax.
As of right now, township officials are asking that property tax payments should be made directly to the township. Payments may be made at the Township Office, located at 740 Denton Hollow Road, between 9 am and 12 noon, Monday through Friday or may be mailed to P.O. Box 1, Pocopson, PA 19366. Taxpayers are asked to include the remittance stub from the original tax bill in either case.
According township Board of Supervisors chair Steve Conary, there shouldn’t be any major disruptions for average homeowners, but those buying and selling homes might see a delay in some paperwork. Conary said that it may take Berkheimer some time to work through Centax’s records, which could delay issuing tax certification (a document declaring that all outstanding property tax has been paid on a property). Other issues he noted included refunds for overpayment.
He also said it was possible that there might be some short-term issues with payments not immediately credited properly during the transition.
“I won’t be surprised if there are some reconciliation challenges as this gets sorted out (no record of payment when taxes were paid for example), but it’s too early to know,” he said.
Centax’s closure shouldn’t prove a major problem for township government in terms of cash flow, Conary said, as much of the annual real estate tax has already been received.
While Berkheimer will be fine as an interim solution, Conary said that the township had already been looking for other tax collection options, noting the growing issues that Centax was having elsewhere in the state.
“We started looking at other real estate tax collectors a couple of months ago to compare our Centax fees with others’ proposals to determine if a change was warranted,” he said. “We now know the answer is yes and need to further pursue the options.”

Seniors: Don't Take High Property Taxes Lying Down

Property taxes are the elephant in many retirees' living rooms.
A USA Today analysis showed that property tax bills rose by a skimpy 1.2% in 2011--the result of declining home values--but real estate taxes are still one of the largest bills in many senior households. Moreover, the long-term trend in property taxes is ominous. Even with 2011's dip factored in, cities, counties, and school districts collected 20% more in taxes last year than they did in 2006, according to the USA Today report.
Although schools and municipalities have slashed their budgets during the past few years to make ends meet, the cost-cutting can only go so far. Many school districts have dramatically reduced headcount in the wake of the financial crisis, and municipalities have put off investing in all but the most essential infrastructure improvements. In addition, one of the items on the chopping block in some municipalities has been--you guessed it--property-tax relief for senior citizens. Perversely, some of the municipalities most likely to raise property taxes are also the least likely to offer homeowners tax breaks and other programs, even if their incomes are low. For example, in 2009 the California state legislature suspended the state's tax-postponement program for senior, blind, and disabled persons; the program has yet to be reinstated. (Individual California counties can still offer this type of program, however.)
For seniors who have paid off their mortgages and other debts with the aim of limiting their overhead in retirement, high property taxes are an unwelcome ongoing outlay, and big increases can make it difficult to stick to a budget. In fact, in a recent Discuss forum thread about downsizing to a smaller home during retirement, several Morningstar.com readers cited high property taxes on their original homes as a factor in their decisions to relocate and/or downsize during retirement. If reducing your taxes by relocating is on your radar, this interactive map enables you to see how property and other taxes levied within your state compare with those of other states.
But relocating isn't for everyone: Although they could move somewhere cheaper, many seniors stay in large urban centers with high property taxes because that's where their children, grandchildren, and social networks are. Such seniors need to take advantage of every measure they can to keep those tax costs as low as they can be. They also need to stay vigilant: Even if they've appealed their assessed valuations or obtained property tax exemptions or freezes in the past, they might need to reapply in future years.
If you're a senior, or an adult child or grandchild who helps your elders with their finances, you have a few different levers you can pull in order to reduce the property tax load. The specifics will vary widely based on where you live, but here are some strategies to keep on your radar.
Investigate Senior-Specific Programs
A starting point when attempting to lower your property tax bill is to see whether your municipality offers any programs to provide property tax relief for seniors. Most municipalities offer a tax break, called a homestead exemption, for property owners if the home is their primary residence and an even larger exemption for seniors. Income limits may or may not affect eligibility, depending on your location. In addition, check to see if your municipality offers a program not explicitly targeted at seniors but rather for longtime owner-occupants whose incomes fall below a certain level. Bear in mind that you may need to file paperwork to obtain these exemptions, and even if you filed for and qualified for such tax breaks in the past, you might have to refile the paperwork in subsequent years. Check with your assessor's office for details.
Municipalities might also offer additional property tax breaks for lower-income seniors. For instance, seniors with incomes below a certain threshold might be able to obtain a refund on a portion of the income tax they've paid, or freeze their property's assessed valuation at the previous year's level. To obtain a senior freeze in Cook County, Ill., for 2011, for example, a senior's household income must have fallen below $55,000 in 2010. (Obtaining such a freeze won't guarantee your bill will stay low because it only freezes your assessed valuation; your municipality could still raise tax rates for all homeowners.) For seniors who are in a true hardship situation, some municipalities also offer tax-deferral programs that are akin to reverse mortgages. The senior defers payment of the taxes until he or she sells the home or dies; the deferred taxes, plus interest, are due at that time.
Check Into Specialized Programs
In addition to programs geared specifically toward property tax relief for seniors, municipalities may offer tax-reduction programs for other groups, too. Veterans might be able to qualify for special deductions or exemptions provided they meet certain criteria; disabled veterans might qualify for even greater tax breaks. Disabled people, regardless of military service, may also qualify for tax reductions. Many locales also offer property tax breaks for people who have recently made improvements to their homes, to ensure that their assessed valuations don't jump up in the years immediately following the upgrades.
Consider an Appeal
In addition to investigating special exemptions and other tax-savings programs, appealing your property's assessed valuation is another avenue to potentially bring down your bill. The amount of property tax you pay depends on the property tax rate for your area--sometimes called a mill levy--as well as your property's assessed value. You don't directly exert much control over your area's property tax rate, but if the latter figure is off, you might be able to lower your tax bill. For starters, it's possible that your local assessor's office has incorrect information about your home: The form notifying you of your home's proposed valuation might say that you have three bathrooms when in fact you only have two, for example. Alternatively--and this is more common--your home's assessed valuation could be out of whack with other homes in your area with similar features. In that case, you'll need to hunt down examples of homes that are similar to yours but have lower valuations and present that information to your local assessor's office in the form of an appeal. Many municipalities have websites that make it easy to search on the assessed valuation and features of your home as well as others in your area.
You can't appeal your property taxes anytime you feel like it; you'll have to do so within your municipality's window for filing an appeal, typically after the assessor has notified you of your property's proposed assessed valuation. You'll also have to file the paperwork in accordance with your municipality's specifications; your local assessor's office should be able to guide you through the process. If you're time-pressed and/or find the appeal process to be too complicated, you can employ an outside firm to file the appeal for you. Many such firms are well-versed in locating appropriate properties to use as examples, and they might also give you guidance on whether to file an appeal in the first place. Just bear in mind that the fee for that service will cut into your savings; a typical arrangement is to pay the appeals company a percentage of the first year's tax reduction.
Stay Out of the AMT Zone
Making sure that you're not on the hook for the alternative minimum tax--or AMT--won't help reduce your property taxes. But if you've exhausted all of the above-mentioned strategies for reducing your property taxes and they're still high, staying out of the AMT zone should be an even greater priority. That's because property taxes, as well as some other common deductions like state and local income taxes, aren't deductible under the tax calculation for the AMT, even though they're deductible under the regular income tax system. Thus, if you're teetering on the edge of being in the AMT zone, it might be worth consulting a tax professional to help you strategize about how to stay out of it, or at the very least reduce the number of years that you're subject to it. For example, if you expect to be subject to the AMT next year but not this one, you might consider prepaying your property taxes for next year so you can take the deduction on your 2012 tax return. This article provides an overview of strategies for reducing your susceptibility to the AMT.

How to Appeal Your Property Value - Oregon

General information In Oregon, property taxes are assessed for real property, machinery and equipment, manufactured structures, business personal property, and floating property. Oregon has an ad valorem property tax system, which means the property taxes you pay are based on the value the county assessor establishes for your property.   The assessor estimates the value of most taxable property on January 1, prior to the beginning of the tax year. The tax year runs from July 1 through June 30. January 1 is called the "assessment date." The assessor's estimate of value will appear on the tax statement mailed to you in October.   The following terms and definitions are provided to help you understand how your property is valued and assessed. Real Market Value (RMV) is the value the assessor has estimated your property would sell for on the open market as of the assessment date. RMV appears on most property tax statements. Maximum Assessed Value (MAV) is the greater of 103 percent of the prior year's assessed value or 100 percent of the prior year's MAV. MAV is not limited to an increase of 3 percent if certain changes are made to your property. These changes are called exceptions. MAV does not appear on most tax statements. Assessed Value (AV) is the value used to calculate your tax. It is the lesser of RMV or MAV. Assessed value appears on your tax statement. Exception means a change to property, not including general ongoing maintenance and repair or minor construction. Changes that could affect maximum assessed value include new construction or additions, major remodeling or reconstruction, rezoning with use consistent with the change in zoning, a partition or subdivision, or a disqualification from special assessment or exemption. Minor construction is defined as additions of real property improvements with a real market value that does not exceed $10,000 in one assessment year or $25,000 over a period of five assessment years. Exception value does not appear on your tax statement. Specially Assessed Value (SAV) is a value established by statute. The legislature has created several programs that set lower assessed value levels for certain types of property. Each program has specific applications and use requirements. Examples of property that may qualify for special assessment are farmland, forestland, historic property, government-restricted low income multi-unit housing, and property that qualifies as "open space." SAV appears on most tax statements for property that is specially assessed. Appealing to your county board of property tax appeals Appealing to the county board of property tax appeals (BOPTA) is generally the first step in the appeal process. Most appeals start at this level.   You may appeal the current year real market, maximum assessed, specially assessed, or assessed value of your property.   The majority of appeals will be based on a difference of opinion between you and the assessor about RMV. In such cases, you will need to present evidence about the market value of your property as it existed on the assessment date. Evidence might include an appraisal report of your property done by an independent appraiser or a comparison of your property with similar properties that have recently sold in your area.   Comparing the value on the tax roll of your house to the value on the tax roll of your neighbor's house, or comparing the taxes you pay to the taxes your neighbor pays is generally not considered satisfactory evidence.   The following are examples in which an appeal of RMV may result in a tax benefit: The board reduces the RMV below the assessed value currently on the roll. Your property has recently been improved and the board reduces the value of the new construction. The board reduces the RMV of your property, and the reduction requires property taxes to be reduced to meet constitutional limits on the education and general government categories of your taxes. See Tax Limitation (Compression) at www.oregon.gov/DOR/PTD/property.shtml for more information. The value of utilities and other centrally assessed property must be appealed to DOR on or before June 15 of the assessment year.   Penalties charged for late filing of a current year's real or personal property return may also be appealed to the board. The board may waive all or a portion of a penalty imposed for the late filing of a return if: You can prove there was good and sufficient cause for the late filing, or The year for which the return was filed was both the first year that a return was required to be filed and the first year you filed a return. How to file your petition You must file appeals between the date the tax statements are mailed and December 31. If December 31 falls on a Saturday, Sunday, or legal holiday, the filing deadline moves to the next business day. File your petition with the county clerk's office in the county where the property is located. You can get the forms you need from your county clerk or county assessor's office. You may also download forms from www.oregon.gov/DOR/PTD.   If you are not the owner of the property, carefully read the petition instructions to learn if you are qualified to file the appeal.   The board will consider your appeal between the first Monday in February and April 15. If you choose to appear at the hearing, BOPTA will send you written notice of the time and location. If you choose not to appear, the board will make a decision based on the evidence you submit with the petition.   The board will notify you in writing of its decision. If you are not satisfied with the decision, you have the right to appeal as follows: Appealing county board decisions You may appeal a decision of BOPTA to the Magistrate Division of the Oregon Tax Court by filing a written complaint. The assessor may also appeal the board's decision. The fee for filing a complaint with the Magistrate Division is $240.00.   Complaints must be filed with the Magistrate Division within 30 days (not one month), after the board's order is mailed to you. You can download appeal forms from www.oregon.gov/OJD, or write to: Clerk, Oregon Tax Court, Magistrate Division, 1163 State Street, Salem OR 97301. You can also order forms by calling 503-986-5650 or by calling your county assessor. Appealing magistrate decisions You may appeal magistrate decisions to the Regular Division of the Oregon Tax Court. To appeal, file your complaint with the court clerk within 60 days (not two months) after the date of the magistrate's decision. The tax court clerk will notify you of the trial date and time.   A trial in the Regular Division of the Oregon Tax Court is a formal proceeding. Although you may represent yourself, most people prefer to be represented by a lawyer. If you are not satisfied with the tax court decision, you can appeal to the Oregon Supreme Court. Failure to appeal to BOPTA Under very limited circumstances, DOR or the Magistrate Division may be able to hear your appeal if you miss the deadline for filing with BOPTA. For more information about appealing to the department, see the publication Supervisory Power: Error Correction Procedure, 150-303-688. You may obtain a copy of this circular by calling the Property Tax Conference Unit at 503-945-8286, or from the website listed below.

Equipment levy proves simply too taxing

Revised setup would be boon to business investment No one I know particularly enjoys paying taxes, but nearly (if not) all will admit to their necessity in helping provide the government services needed to keep our economy running. But not all taxes are created equal – and not all taxes have the same effect on job creation and growth. Indiana businesses are required to pay property tax on just about everything they own. This includes all the things they need to conduct daily operations and produce their product. Each year they must file a return listing all their depreciable assets.

Property tax is then assessed on those assets. This means they pay tax on every machine, device, tool or piece of equipment they own – computers, office furniture, forklifts, laboratory equipment, lathes, boilers, cash registers, robotic assemblers, you name it. It is all taxed – every year. But taxing personal property is taxing business investment. The state is taxing everything needed to start, maintain and grow a business.

The consequence is that businesses moderate their capital investments because of the tax implications. Some states wisely never elected to impose the tax, and a growing number of those that do are recognizing the detrimental effect and either choosing to do away with it or finding ways to moderate it. While Indiana’s business climate has many strong advantages over our neighbors, this is an area in which the state is at a distinct disadvantage. Illinois is a total fiscal mess, but it does not tax personal property. Ohio eliminated its personal property tax in 2010. Michigan is moving to do the same. And even though Kentucky taxes personal property, its average business property rates remain lower than Indiana’s.

 Currently, 12 states have no personal property tax at all. At least another 20 have substantial exceptions and exemptions. In the best research available, the 50 State Property Tax Comparison published annually by the Minnesota Taxpayers Association, Indiana fares poorly with the fifth- and sixth-highest effective tax rates in separate rural and urban categories. Local officials are reluctant to give up what is, in some cases, a substantial percentage of their tax base without replacement revenues.

It would take about $1 billion to replace the personal property tax collected statewide each year. Thus, you can’t simply do away with the tax. Yet, the economic development certainty is that Indiana needs to change its policy.
Please visit FindaPropertyTaxLawyer for more information.

Should You Appeal Your Property Assessment?

The Lake County Assessors Office offers information on who should appeal, and step-by-step instructions if you wish to do so.

With property assessment notices due to arrive in your mailbox soon, you may consider filing an appeal if you disagree with the numbers.

Township assessors are required by law to use sale prices from the last three years, so it is not a reflection of today's real estate market.
The intent of the property assessments is not to individually assess each home, but rather use a formula on a group of properties to help allocate the tax burden fairly. A good calculation, Jackson said, is that the assessed value should reflect one third of the fair cash value of the property.
By filing an appeal  you have the potential to lower your property taxes. "If your assessment is reduced more than the general public's, you'll see it on your taxes," Jackson said. "You will effectively pay less taxes on what you would have paid, if you win the appeal." However, Jackson warns, that doesn't always happen.
Jackson said about three quarters of all appeals are successful. He encourages property owners to take a close look at their notices, and to file an appeal, or at least ask questions if you are unsure about doing so.
The Appealing Process
The Lake County Assessors office has made it very easy to file an appeal with step-by-step directions.
Appeals must be made within 30 days of the notice, and are usually filed for one of the following reasons:

• The assessment has a factual error (e.g., incorrect square footage).
• The assessment is greater than one-third of the subject property’s recent sale price.
• The assessment is greater than one-third of the subject property’s market value.
• The assessment of the subject property is higher than that of comparable properties.

On the Assessors website you'll find a checklist for what documents you will need for your appeal, all the forms you'll need to fill out, rules for the board of review and when the hearings will take place.
Jackson suggests before you file an appeal, to call your Township's Assessor to determine if it is necessary or not.