Memphis attorney Vincent Perryman discusses Property Taxes with Gwen Hewitt and what the property taxes are, how they are assessed and how to refute the appraisal. In Memphis, TN taxes are reassessed every four years. The property values reflect the current value based on property sales within an area. They determine the fair market value of a Memphis property by splitting it into two different categories, the land and the dwelling and then combine the two to get the overall value of the property. County taxes are levied on all properties that reside in Shelby county. The total property tax income is calculated and then divided amongst the different Shelby County municipalities and unincorporated areas and this gives each area its budget. Then each of these Shelby County municipalities come up with their own city property tax. Generally when budgets increase the taxes will increase on the properties. If a property assessment is considered unfair or too high you can apply to the Shelby County Board of Equalization. Before applying to this board you can apply directly to the Property Assessor. When applying to the assessor to reduce the value of the property make sure the property truly cannot be sold for the value it is assessed, then you may have a case. Memphis assessors need to have reasons provided as to why the Memphis or Shelby county resident believes the property is not valued at the assessment.
Some good reasons to challenge a Shelby county property assessment would be when one side of the street has property value decrease and the other side of the street increases. Some reasons these values increase or decrease because of something as simple as a drainage ditch, traffic lights, or even remodeling of specific houses. It is a good idea to show a property should be reduced in assessment with comparables of houses sold at a less value. If the comparables that are only foreclosures, it is more difficult to devalue the assessment to those values. Once a Shelby County property has been assessed the appeal period begins May 1st and ends June 30th. The Assessors office opens the appeal process in March and can be filed online. If the Board of Equalization declines the assessment dispute you can take it to the Tennessee State Court.
Taxes are generally paid from escrow in a home loan mortgage. Memphis residents that fall behind are those that own their home outright or have a mortgage with a company that doesn't provide an escrow service. If you are unable to pay your Shelby County property taxes they run at an 18% interest and penalty rate. Late taxes are 2 years old before a suit is filed and when the suit is filed additional fees are charged for the filing of the suit. If you are in tax sale and you don't want to lose your home a payment plan can be considered or bankruptcy can be filed to prevent the property from being taken. If you lose your property you have a 1 year right of redemption that begins on the date of the tax sale. It is a legal action where you can regain ownership of the property. A petition must be filed, the full amount of taxes owed must be paid and the total amount the property was purchased for plus 10% must be paid within this 1 year redemption. The purchaser has the right to keep the property only after the 1 year redemption. Any money spent on the property for maintenance or taxes during the time frame of right of redemption must also be reimbursed to the current owner.
