As the year comes to a close, it’s the perfect time to take a closer look at your property taxes to ensure everything is in order. Property taxes are a significant part of homeownership, and staying on top of them can help you avoid unnecessary expenses and make the most of the benefits available to you. Here’s a quick guide from Best Title & Co. to help you navigate property taxes effectively:
1. Understand Who’s Paying Your Property Taxes
One of the first steps to managing your property taxes is understanding who is responsible for paying them—you or your mortgage servicer. If you have a mortgage, your servicer often collects property taxes as part of your monthly payment and pays them on your behalf through an escrow account.
Take these steps to confirm:
Check your escrow statement: Review the annual escrow analysis statement from your mortgage company to verify payments.
Contact your mortgage servicer: If you’re unsure, call your mortgage company to confirm the status of your property tax payments.
If you pay your property taxes directly, mark your calendar with the deadline (typically at the end of the year or early in the new year) to avoid late penalties.
2. Ensure You’re Getting the Best Tax Rate
Property tax rates can vary, and it’s worth reviewing your assessment to ensure you’re not overpaying. Here’s how:
Review your property’s assessed value: The tax amount is based on the assessed value of your home. This information is typically found on your tax bill or through your parish assessor’s website. For example, check your assessed value for Orleans Parish here.
Compare with similar properties: Check the assessed values of comparable homes in your area to ensure yours is in line.
If your assessed value seems too high, you have the right to challenge it.
3. Dispute Your Assessed Value if Necessary
If you believe your property’s assessed value is too high, you can file an appeal to potentially lower your tax bill. Here’s how:
Contact your parish assessor: Reach out to the assessor’s office to understand their appeal process and gather any necessary forms.
Gather evidence: Compile documentation, such as a recent appraisal, photos of property damage, or comparisons with similar properties in your area.
Meet deadlines: Appeals are time-sensitive, so check your parish’s deadline for filing a dispute.
Successfully disputing an over-assessed value could save you hundreds or even thousands of dollars in property taxes.
4. Don’t Forget to File for Homestead Exemption
Homestead exemption is a valuable benefit for Louisiana homeowners that can reduce your property tax bill. This exemption applies to owner-occupied primary residences and can exempt the first $75,000 of your home’s assessed value from taxation.
To file:
Visit your parish assessor’s office: Filing must typically be done in person, though some parishes may allow online filing.
Bring required documentation: You’ll need proof of ownership (like your closing documents), proof of occupancy (such as a driver’s license), and possibly other forms.
Check renewal requirements: In most cases, the exemption is automatically renewed annually, but it’s good to confirm.
5. Prepare for Next Year
Being proactive about property taxes now can set you up for success in the coming year. Consider these tips:
Set up reminders: Whether taxes are paid through escrow or directly by you, keep track of key dates.
Monitor changes: Be aware of any changes in local property tax laws or rates.
Work with experts: Reach out to a trusted real estate or title professional—like the team at Best Title & Co.—for guidance.
Managing property taxes may not be the most exciting part of homeownership, but it’s an essential one. By confirming who’s paying your taxes, ensuring your rate is fair, disputing assessments if necessary, and filing for exemptions, you can save money and avoid surprises. If you have questions about property taxes or any aspect of homeownership, Best Title & Co. is here to help. Contact us today to learn more about how we can assist you!
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