More seeking break on property tax

CLEVELAND -- A growing number of homeowners are trying to make falling property values work for them by asking the government for a tax break.

Some are winning cuts worth hundreds of dollars in taxes that traditionally help pay for everything from law enforcement to road crews in a city or county.

Nationwide, home values are falling because of deeply discounted foreclosures, harder-to-get mortgages, and an economy in shambles. Faced with property tax bills that still reflect heady prices of the boom years, more homeowners are learning about the appeals process. The obscure and once rare process of appealing property taxes usually involves no fees and no need to hire an attorney or an appraiser.

The number of appeals for the 2007 tax year went up anywhere from 10% in Collier County, Fla., to almost 90% in Clark County, Nev.

"Because of the market and so forth and people are frustrated ... It's tough right now," said Abe Skinner, Collier County's property appraiser.

It's too soon to know how much tax money local governments might lose. Property tax rates are structured to protect the government against steep declines or increases in value.

The median sales price in Chicago was down nearly 10% in October from a year ago, and property value challenges have more than doubled in Cook County, Ill., from about 127,000 in 2005 to about 277,000 last year.

"They're willing to pay their fair share, but they don't want to pay more than their fair share," said Joseph Berrios, one of three commissioners on the Cook County Board of Review.

Berrios said his staff will put in a lot of overtime to keep up with demand.

Any property owner who thinks the government has placed an unfair value on a piece of land has the right to challenge that decision. What's brought wider attention to this right are skidding property values, especially in markets plagued by foreclosures.

"More and more people are becoming aware of the process that's always been there ... and (are) taking advantage of it," said Robert Chambers, director of Cuyahoga County Board of Revision in Cleveland.