In addition to your basic property taxes, when your property tax bill seems unusually high especially during this housing crisis you probably have a Special and/or Direct Assessment on your property. This will vary based on the area your residence is located, there may be charges needed pay for voter-approved obligation bonds or other indebtedness, special assessments, or direct levies. Such as, a Direct Assessment could be applied to your house if the voters in your community decide to establish a sewage system in a city where the were using residences use septic tanks. The direct assessment is applied pay for the sweage system to the community.
Most of the time, a direct assessment is added on to your property tax bill over years so the taxpayers are not overwhelmed by the special assessment to pay for the improvement. Special and Direct Assessments have a reason they are added on to your basic assessment such as an improvement to a community and when that new improvement has been paid for the special or direct assessment is complete and will no longer be on your property tax bill. Generally, this type of debt is usually fraction of a percent increase in your existing property tax rate.
Special and Direct assessments that you may see on your property tax bill are applied by the county tax collector on behalf the local levying agency or district, not on behalf of the assessor, auditor-controller, and/or the county tax collector offices. Special and Direct Assessments are voter approved taxes so if there is any issue with it, it did not come from the Assessor’s Office. To find out more or to dispute a special assessment on your property, contact the levying district. Usually this information is on your property tax bill.
It is not wise to refuse to pay a property tax bill that contains the special or direct assessment, even when the direct levy amount is under dispute. Remember that even if you disagree with your property tax bill it is always wiser to pay the bill and get refunded later than to have an outstanding tax bill on your home. The processes to delete a delinquent property tax bill and all of the fines, need several signatures and forms within the Office of the Assessor and Tax Collector and is pretty a mess. So keep it simple, pay your property tax bill, any exception to this would be an extreme situation.
About the Author: Valerie Faltas, Property Tax Expert has been involved in all facets of real estate for over ten years including assessments, appraisals, estates and trusts, investing and much more. She is a Certified Property Tax Appraiser, Licensed Residential Appraiser and a member of the International Association of Assessment Officers. As a real estate investor and advisor she is well versed in all aspects of real estate. To contact Valerie Faltas go to her website: www.propertytaxlittleblackbook.com.
