How To Appeal A Virginia Tax Assessment
Every year, property owners in Virginia are provided with an official notice of the assessed values of their properties. This is done by a local tax assessor, who determines how much taxes you owe to the state government. These assessments represent the property’s market value.
However, this assessment is often inaccurate. Most homeowners are not aware of the laws or rules that go into the evaluation and end up paying more taxes than they should. If you disagree with your property’s assessed value, a CPA Reston can help you identify errors, if any.
If you do decide to file an administrative appeal, make sure you are right on time, as there are deadlines to follow. Read this blog to understand tax assessments and how to file an appeal.
Understanding tax assessments
Tax assessment is the process of determining the value and sometimes use of a particular property to calculate taxes. A home assessor usually does this to pay an appropriate amount of taxes.
There are various factors affecting this assessment, including the property size, your age, construction type, and where you live. Whether your property is residential, commercial, agricultural, etc., also affects the final tax bill.
Tax assessments are not just done for your property. There are various types of tax assessments in Virginia, including income and business tax assessments.
The procedure of determining property tax is complex and depends on multiple factors. For instance, the taxes on empty land will be much lower than the tax bills on improved property. Also, the assessment will be higher if the area has access to public services.
Basically, the higher your property is valued, the higher your tax bill is going to be. This is why it is important to have accurate tax assessments and take adequate steps if there has been a mishap.
The appeals process in Virginia: A step-by-step guide
If you are filing for the first time in Virginia and wish to appeal your property tax assessment to lower your tax bill, here is a step-by-step guide you can follow.
Step 1: Understand the deadlines.
If you want to file an appeal, you must act quickly. The Virginia Department of Taxation gives you a limited period of 90 days from the date of the assessment to file the appeal.
In case you miss this deadline, you have two other options. You can file within three years from the last day of the tax year when the assessment was done. You can also file within one year from the final date of the appealable determination.
Step 2: Prepare for the appeal.
It is recommended that you have a tax expert or financial advisor with you during this step. Make sure you have all the necessary information and evidence to support your claims. If somebody else is filing the appeal on your behalf, they must have a notarized letter of authorization.
Step 3: Submission of appeal.
You should submit the appeal to the Appeals and Rulings section of the Virginia Department of Taxation. You can do it via mail or offline.
Step 4: Wait for the determination.
They will review your appeal and get back to you with a determination within 90 days of your submission.
Step 5: Receive the determination.
When you receive the determination, it is not always guaranteed that your appeal will be successful. It will be one of three options– the assessment will be affirmed, increased, or decreased.
Step 6: Consider further appeal.
If you are not happy with the determination, you have the option to appeal further to the Tax Commissioner. You also have the option to appeal to the Circuit Court directly.
Was your tax assessment incorrect?
With the tax laws and regulations being so complex, it is easy to make mistakes. Nobody wants to pay more taxes than they should. Hire a CPA in Reston, Virginia, today to help you with preparing an appeal!
