Save 50% of your Baldwin County property taxes!
November 18th, 2007 categories: Real Estate 101
Why do some people pay twice as much property tax on their primary residence as they have to? How can this happen?
It happens when they have failed to have their property assessed correctly as their primary residence. This results in being assessed for taxes at a rate of 20% of appraised value instead of 10%. This effectively doubles the tax bill!
For all residential property owners, this is the easiest money you can save yourself! The State of Alabama and Baldwin County will cut your assessment and property taxes in half if it is your primary residence and you have correctly completed the proper paperwork.
What’s the catch? If you don’t file a correct Assessment Return, you won’t get the lower assessment rate of 10%!
How do you get your 50% property tax discount?
You must first be sure that your property deed has been recorded at the courthouse. This is usually done by your title company or closing attorney shortly after your purchase. But it is your responsibility to be sure this has been done. If you are not sure that your deed has been recorded, just take your deed to the local satellite courthouse, and ask for assistance in the Probate Judge’s Office.
Next, visit the Tax Assessor’s Office. You will be asked to complete a form called an Assessment Return stating that your property is your primary residence. That’s it. Sound easy? It is. Yet there are people who do not do this, and they will pay double the property tax they should be paying.
Can you get a refund if you discover that you are being assessed at 20%? No. You must claim the correct assessment rate before the new tax year begins, which is October 1. If you buy a new house during the year and fail to claim your exemption by October 1, you will pay double for the upcoming year!
The good news is that you only have to go through this process one time. Your home will be assessed on the same basis as a primary residence next year.
Must I do this in person?
No. Any family member or friend can do it for you. But they must take your recorded deed with them.
New to the area? Many real estate agents will do this for you, if you give them permission, and request that they provide you this service. You know you have a knowledable and professional real estate agent when they advise you of this required assessment and offer to handle this for you!
More tax discounts!
There are other tax exemptions that you may qualify for. I will be writing more articles on this important topic.
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