Are Your Property Taxes Too High?
If you own real estate in the Park City, you should have received your 2021 property tax notice from Summit County. In fact, every property owner in Utah should have received this notice from their local county. It isn't a bill, but it tells you how much the county is planning to bill you for your property taxes this fall. Here's how to make make sure you don't overpay:
Look at Your Assessed Value
This is how much the county thinks your property is worth, and it's the first way to make sure you don't overpay your 2021 property taxes. If your assessed value is more than any of the following...
- Appraisal from refinance or purchase in 2021
- Purchase contract if you bought in 2021
- Recent sales in your neighborhood in 2021
...You could save money on your property taxes by filing an appeal (more on that below).
Obtain Recent Sales
This year, you've probably been impressed by the high asking prices in your neighborhood. So is the county Assessor. While they can't see what buyers are actually paying (because Utah is a non-disclosure state), they make two assumptions that can affect your property taxes:
- They assume listings sell within a certain range of the asking price; and
- They assume your property is worth a comparable amount (adjusting for square footage and lot size).
That's why you want to check on the recent sales in your neighborhood, and look at more than just the selling price. If the recent sales are newer construction than your home, more recently remodeled, or have something exceptional that would make them worth more than your property, your 2021 assessed value may be inflated. Unless you file an appeal, you could end up overpaying for property taxes.
Ask me for recent sales in your neighborhood
Primary Residence Exemption
If your property is a primary residence, you save 45% on your property taxes in Summit County. Wasatch County where Victory Ranch, Red Ledges, Hideout, and Tuhaye are located also has an exemption for primary residents. Most locals already know this, but if you're a second homeowner you may still qualify if:
- You have a long term tenant in your property (6 months+).
- You moved into your second home and declared residency in Utah.
Just because you declared residency in Utah does not mean the local county treasurer is aware of it. It's up to you to let them know so that you can get the deduction. There are a couple caveats, though:
- You can't do more than 14 days of short term rentals.
- You have to fill out a Primary Residence Application by May 1st.
You'll know if you're getting the primary residence exemption because your tax notice will say "Primary Improved Property" next to your assessed value. If you missed the exemption this year, you should still fill out the application so that you get the property tax savings in 2022. This FAQ page on the Summit County Assessor website has great info. If you live in the Heber Valley or surrounding area, check out the Wasatch County Assessor's website.
How to Appeal Your Property Tax Notice in 2021
Summit County property owners have until September 15th, 2021 to appeal their property tax notice. The form you need to fill out is on the Summit County Board of Equalization website. The process is pretty straightforward as long as you are prepared to provide proof that your assessed value is incorrect.
The most common "proof" is provided with comparable sales, and I will be happy to send those to you for your neighborhood or development. You can email me at email@example.com or call me at (435) 513-0696.