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For homeowners this has been quite a surprise that not only have their property tax bills not decreased, but they have actually increased, as they struggle to understand why they are paying more in taxes on homes that are not worth as much as they were just a year ago. The reason for this relates to the complex manner in which property taxes are calculated in many areas. One of the biggest problems, especially in Nevada, is the fact that property tax increases were capped during the housing boom. During this time home values skyrocketed rapidly. Property tax relief can be obtained in many ways, such as exemptions, frozen assessment rates, abatement, refunds, or direct rebates on property tax. Today, the values of homes in these same areas are falling; however, the decreases have not actually been enough to compensate for the increases of just a few years ago. Consequently, the values of homes would need to decrease sharply over a short period of time in order for property tax bills to decrease. While declining property values have certainly been a problem, they simply have not decreased enough in many areas to provide any relief from property tax bills.

Most states use mils to measure the property tax. A mil is equal to $1 for every $1000 when comparing a home’s assessed value to its appraised value. Therefore, if you own a house worth $100,000 and your property is taxed at 3.5 mils, you owe $3.50 for every $1000 of value in your home. By this equation, your property tax would be $350. Some mortgage lenders escrow for these taxes on a per month basis. If you are not escrowing yours through a lender, your local government will bill you quarterly for your assessed property tax.

You might also check with your county to determine whether you may be eligible for an extension for property taxes which are unpaid. In some situations, the county treasurer may be able to grant you an exemption for your taxes if you are able to demonstrate extreme hardship. It is best to do this as early as possible

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