FAQ
Property Tax, Answered
The questions owners actually ask, answered without fluff.
FAQ
The questions owners actually ask, answered without fluff.
The Basics
Karas Realty Advisors Ltd. specializes in property tax appeals and real estate tax matters. We advocate for taxpayers by bringing concerns to the attention of the proper taxing authorities, with the goal of fair and equitable assessments.
We review your property’s assessment and property record card to find errors and openings to reduce the assessed value, which can lower the bill. In Orleans Parish alone, more than 165,000 parcels are valued each year through a mass appraisal process, and that scale produces mistakes.
They fund local government. Federal and state money contributes, but the majority of local revenue comes from property taxes, which pay for schools, police, fire and public health.
Your bill shows the distribution. Schools usually take the largest share, then services like police, fire and public health. The allocation varies by jurisdiction.
Assessed value, minus exemptions, multiplied by the millage rate. Assessed value comes from the market value of land and building adjusted by an assessment ratio, which for residential property is usually 10 percent of market value.
It is possible in theory but unlikely, because taxes track local budget needs. If a jurisdiction’s revenue needs hold steady there is no need to raise them, and as budgets grow, taxes follow.
An exemption reduces the taxable value of your property, which lowers the bill. There are several types, such as homestead exemptions for a primary residence, and availability depends on local rules.
It values property from comparable sales in the open market, adjusted for size and features. It can be a problem when the comparables are refreshed properties with recent repairs, which do not reflect the condition of your property.
Uniformity is consistency between assessments. In many states you can use a neighbor’s assessed value as a comparison. Louisiana’s property tax code has no uniformity provision, so only market transactions and current listings can be used as evidence here.
Your Assessment
Maybe. Computer models generate tens of thousands of valuations, and errors happen. Sometimes an error is in your favor. Either way it is worth reviewing the assessment for accuracy.
The most effective route is an appeal challenging the current assessment. In some cases a refund of previously paid taxes is possible. We help identify and correct the errors in the assessment.
Usually the property record cards differ. In newer subdivisions values tend to be consistent. In older neighborhoods, added square footage, conversions and damage create real discrepancies.
No. Reducing a property tax expense can actually make a home more attractive to buyers. A senior with a tax freeze may still see assessed value climb, which lands on the next owner.
No. After the appeal process, the jurisdiction totals the taxable value and sets a rate that meets its budget. One appeal does not meaningfully change that.
We can proceed on the taxpayer’s authorization alone, but data, reports and photographs help. Detail builds credibility, and third party evidence strengthens the case.
Working With Us
In Louisiana the open roll period typically starts in July or early August and lasts about 30 days, and each jurisdiction can differ. Appeals filed in the final days often get kicked to the Board of Review, so early is better.
The initial application is filed by midnight of the open roll conclusion when using a portal, by end of business on the final day for a physical drop off, or postmarked by the last day of the open roll.
Yes. As long as the connection between the entity and the authorized person signing the documents is established, there is no issue.
We represent you. In our experience attending with us is usually not helpful, because by the hearing stage the evidence is filed and the hearing is brief, addressing stipulations and any confusion.
The free consultation will already have set out the steps. It can be as little as forwarding a few files by email, or as involved as arranging a site visit and coordinating tenant access.
Informal results are sometimes available at the hearing and we share them. Nothing is invoiced until results are posted on the assessor’s website.
That service is being developed and is not available yet.
Property tax is not merely a job here, it is a consuming passion. Where other parts of real estate are transactional, a property tax question here gets the deep answer, because assessment errors can be financially catastrophic for the owner who carries one.
Fees And Results
The total fee is based on the first year’s tax savings. Residential property owners, one to four units, are charged 33 percent. Commercial, industrial and multi-family, five units and up, are charged 25 percent. A small administrative fee is charged at the outset and subtracted from the final fee.
There are no guaranteed results, every case is handled individually. The contingency structure means both parties share the same goal: the more we save you, the higher the invoice. That is why there is no flat fee.
We work toward the lowest defensible tax bill on your property.
When official results are released, which is typically when the assessor or Board of Review posts them online.
The contract specifies the tax year. Appealing is at your discretion and taking the case is at ours.
Escrow is usually based on prior bills. If old bills were $3,000, a new assessment doubles it to $6,000, and the appeal brings it to $4,500, the servicer still has to collect for $4,500, which can be more than you paid before.
No guarantees. The contingency fee is what aligns the goal of the lowest possible assessment. Refunds are offered in very few cases.
No. A lower tax expense does not reduce value, and it can make the property more attractive to a buyer.
Free Consultation
If you do nothing, you guarantee the result: no reduction. Find out in one call whether you have a case.
Request A Free Consultation