Understanding Property Tax Reassessments and What They Mean for You

Property taxes, also called real estate taxes, are collected by your local county government. They generally pay for services that make your community run smoothly, such as public education, fire and police protection, road improvements, and special projects. By collecting taxes equal to a small percentage of your property’s value, local governments ensure that homeowners pay a share of expenses that benefit the entire community.

These payments are due once or twice a year, and the due dates vary, depending on the state you live in. Your mortgage company usually pays these taxes on your behalf with the funds in your escrow account.

At the beginning of the year, you may receive a notice from your county that states that your property has been reassessed. This means that the county assessor has reviewed and updated the value of your property. This value is used by the county to calculate your annual property taxes. If the assessed value of your property has increased, this is often an indication that your property taxes may increase. This notice is for informational purposes and does not always reflect the final tax amount you will owe.

If you believe your property’s assessed value is inaccurate, the county’s notice will include information on how to file an appeal or dispute. Keep in mind that disputing the assessed value is handled between you and the county assessor. ServiSolutions is not involved in the assessment or appeal process. Increases in assessed value do not always indicate an increase in property taxes.

ServiSolutions does not track assessed property values. Instead, we rely on the actual dollar amounts billed by the county when property tax bills are issued. If your property taxes are paid through an escrow account:

• Any increase in property taxes may affect your escrow balance

• ServiSolutions performs an annual escrow analysis to make sure you have enough money in your account to pay the taxes

• Your monthly mortgage payment may change as a result

Some borrowers may wish to estimate upcoming property taxes after receiving a reassessment notice. In many cases, the county assessor’s office can provide guidance; however, they may not be able to give an estimate until tax rates have been approved for the year.

If you have questions about how a property tax bill may affect your mortgage or escrow account once it is issued, ServiSolutions is always here to help. Check out our FAQs at www.servsol.com/homeowners/property-taxes or email us directly at [email protected].