Property taxes are collected from property owners by the state. Every state has a different rate when it comes to property taxes. Rates might also be different for residential properties compared to commercial properties. In most cases, the property tax is determined according to a percentage of the property’s value.
The term "property tax" usually refers to real property (i.e., buildings, land, dwelling places, etc.). Some states may place taxes on personal property as well.
What Are Some Common Disputes over Property Taxes?
Property taxes are often the subject of many different real estate disputes. Some common disputes over property taxes include:
- Disputes over the total amount owed
- Disputes over unpaid taxes- In some cases, a tax deed sale may result, wherein the property is sold and the proceeds collected in order to pay off the delinquent taxes
- Conflicts regarding which parties are responsible for paying the taxes (especially in relation to a sale or transfer of property)
- Conflicts wherein outstanding property taxes hinder ownership or usage rights
- Disagreements over the overall estimated value of the property (if the property is valued too high, taxes will subsequently be higher)
In addition, property taxes can also be related to other disputes. For instance, it is common for property taxes to affect business operations. Lastly, property tax fraud is can be an issue and may lead to serious legal consequences. Attempting to avoid tax liability or use misrepresentation to pay less taxes can lead to fines and even criminal liability.
How Are Property Tax Disputes Remedied?
In most cases, property tax disputes can be addressed through a property tax proceeding. This is a legal process with the court in which property taxes are assessed, evaluated, and analyzed. Here the, court may determine which parties are liable for property taxes, as well as the amount owed. These amounts may be proven using property documents as well as information from previous tax years. They can also determine whether a local or state tax statute is unfair or not.
In some cases, a private lawsuit may be filed in connection with a property tax issue. These are often filed when there is a dispute over taxes which also leads to financial losses on a sale of property. A common example of this is where there are unpaid taxes on a property which delays or hinders performance under a property sale contract.
Do I Need a Lawyer for help Resolving a Property Tax Dispute?
Disputes over property taxes can often be complicated and may involve a mix of different laws and statutes. You may need to hire a real estate lawyer in your area if you have any questions, concerns, or legal issues regarding property taxes. Your attorney can provide you with legal research, representation, and other services in connection with your claim. Also, if you have any specific questions or requests, your lawyer can address those as well during the course of the representation.