If you are paying more than your fair share of town or city taxes you may be entitled to an abatement. Real estate tax is based on the fair market value of your property multiplied by the municipality’s tax rate. Since tax rates are uniform within a municipality, the only potential source of inequality stems from the assessment of a particular parcel.

Assessments should be based on properties’ fair market values, and will typically rely on formulas that incorporate values from many variables, such as type of property, neighborhood, zoning, views, types of buildings, size of lot, etc. Market values are also influenced by the real estate market, which can rapidly fluctuate. Municipalities frequently use formulas based on comparable sales in lieu of assessing each individual property.

While the use of formulas typically produces accurate results, it is not reliable for every property. Sometimes assessments come in too high. Over-assessment may be established by evidence that the property was on the market or sold for a lower price than its town assessment. However, it is usually not this simple to demonstrate.

If you feel that your property is over-assessed, you may wish to contact an attorney to assemble the necessary evidence in support of your request for abatement. In addition to filing the abatement application and negotiating with the town, an attorney will recommend a professional appraiser to provide a reliable market value and assist with identifying recent sales of similar properties.

Fair market value is determined as of April 1st of the new tax year. Abatement applications must be filed by March 1st, even if tax bills are sent biennially.