ASSESSMENT APPEAL CAN LOWER TAX BURDEN.

Byline: Vivian Marino Associated Press 

Ask most people to cite their biggest gripe about home ownership and the reply likely will be the same: rising property taxes.

Taxes on residential and commercial real estate have climbed steadily as local governments wrestle with recurring budget shortfalls. The total property tax bill is expected to reach $195 billion at the state and local level this year, up from nearly $190 billion in 1996 and $168 billion at the start of the decade.

Most of the 13,500 taxing jurisdictions get about a third of their total revenue from property taxes.

Residents have only limited input into the budget process that sets tax rates. However, they may be able to lower what they pay, mainly by appealing their home's assessed value - the vehicle used by most municipalities to quietly raise taxes and avoid outwardly hiking rates.

The window of opportunity for appeal is typically in the spring, the time by which property assessment notices are mailed out. Yet experts say few homeowners bother to question their local taxes.

``Most people are very ardent about their federal income taxes; they look for every loophole to get out of paying,'' said Frank J. Adler, author of the book ``How to Reduce Your Property Tax.''

``But when they get their (assessment) notices, they tuck it under the rug. If people really start to look at this, they'll realize they're paying more than their fair share.''

The National Taxpayers Union, a taxpayers advocacy group based in Arlington, Va., estimates that as much as 60 percent of the taxable property in the United States may be overvalued, and therefore overtaxed, but says only about 3 percent of homeowners bother to dispute their assessments.

More than half of those that do, it says, ultimately obtain some relief.

The most important point to realize is that no one wins an appeal simply by arguing their taxes are too high. The only way to reduce taxes is to lower your assessment.

All assessments are based on market values determined by the assessor's office. Some local governments use a percentage of the total value, or some other ratio, to calculate the tax bill, which at first glance can sometimes appear deceivingly low.

``People might say, `Wow, I'm really getting away with something,' not realizing that it's just an accounting device,'' said Peter Sepp, a spokesman for the NTU.

If you find your assessment is above prevailing market values in your neighborhood, there are steps to take that could bring it down. First, you must decide whether you want to do it yourself or hire a professional.

``You ought to be able to know whether you can handle it on your own after an afternoon of research,'' said Sepp.

The surest shot at gaining tax relief is to show your local assessor that a simple mistake produced an inflated assessment. You can easily do this on your own by reviewing your property record card in the assessor's office for any errors - Is the lot number and description of property correct? Are four bedrooms listed when there are only three?

Make sure easements are noted - a utility's right to string power lines across your back yard cn reduce assessed value as well.

Any exemptions should be noted as well. Some states provide tax relief to residents with special needs, such as low-income families, senior citizens, veterans and their surviving spouses, and the disabled. But they're not automatic; residents must apply for them.