Senior Community, Fewer City Services -- Do You Still Owe Full Taxes?
Reader Question: I live in a community for individuals over the age of 55. We do not receive complete services from the city. For example, during the winter, there is no street plowing, and we rarely see police patrols. Can I successfully challenge the real estate taxing rate from the city due to these reduced services?
Monty's Answer: Many homeowners assume property tax is a pay-as-you-go user fee. In reality, it is a broad revenue engine: your bill funds schools, debt service, pensions, libraries -- and yes, streets and police -- whether your block benefits directly or not. The assessment formula in most states remains straightforward: assessed value multiplied by the local mill rate. Services, plowed or not, do not appear in that math.
Here are points to ponder:
No. 1: Tap relief you already qualify for. Since 2013, many legislatures have expanded senior "freeze," circuit-breaker, or deferral programs that cap taxes once owners hit a certain age or income bracket. Check your county treasurer's website first; filing that short form may reduce your bill more quickly than any appeal.
No. 2: Audit the assessment, not the services. To win a challenge, you must demonstrate that your value is significantly higher compared to similar properties that receive the same limited service. Most counties now publish free GIS dashboards that list the size, sales history and assessment of every parcel. Build a quick "equity grid" of five look-alike units in your community. If your per-square-foot value is higher -- or if recent arms-length sales run 10% below your assessment -- you have a strong data case.
No. 3: Beware the revaluation boomerang. Modern assessors feed those dashboards into automated mass appraisal models. When one owner disputes data, the algorithm can refresh every value on the street -- sometimes upward. Gather airtight evidence (and poll your neighbors) before you pull that trigger.
No. 4: Mind the procedural land mines. Appeals typically begin with the local Board of Review, and the window can be as short as 15 to 45 days after notices are issued. Miss the deadline, and you forfeit any court review. Put the date on the refrigerator now.
No. 5: Why "reduced service" rarely changes the levy. Cities unwilling to maintain private streets increasingly tack on stand-alone fees, such as "transportation utility" or "snow-and-ice" charges, rather than lowering the mill rate. Knowing this keeps expectations realistic: the assessor can leave your value untouched even when no plow shows up.
No. 6: Consider dedicating the roads. Some over-55 communities negotiate to deed their private streets to the municipality in exchange for plowing and patrols. The catch: the HOA must first upgrade asphalt, drainage, lighting and width to code, often a six-figure project. Run a cost-benefit analysis before pitching the idea.
No. 7: Leverage numbers, not solo heroics. Roughly one-third of U.S. homes now sit in common-interest communities. A petition signed by dozens of voters and backed by solid valuation data carries more weight at city hall and spreads legal costs if you hire a contingent-fee tax-reduction firm. Such firms exist in most states and are willing to travel.
Final thoughts
You can trim your tax bill two ways: (1) claim every senior exemption available, and (2) prove your assessment is out of line with comparable properties. Lack of plowing alone rarely makes a significant difference. Approach the issue with data, respect the deadlines and rally your neighbors; otherwise, the effort could leave everyone paying more, not less.
Richard Montgomery is a syndicated columnist, published author, retired real estate executive, serial entrepreneur and the founder of DearMonty.com and PropBox, Inc. He provides consumers with options to real estate issues. Follow him on Twitter (X) @montgomRM or DearMonty.com.
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