It's been said that there are two things we can't escape: death and taxes.
While there may not be life-extending potions yet, there are laws that can help HOAs actually reduce or recapture their property taxes.
Homeowners' Associations that have common areas are eligible for a reduction of the assessed value of their property taxes in most states.
Common areas may be entitled to a significant reduction in their property taxes.
If properly petitioned, the assessed value should be no higher than $500.
While this valuation is not new, some communities are not taking advantage of this benefit.
As well, some new Associations don't appeal their taxes at the earliest possible time for maximum benefit to the HOA.
In most states, Homeowners Associations may combine their common area parcels to further benefit from these savings.
If a Homeowners Association has or is currently overpaying for property taxes, they still may appeal for a reduction.
In fact, even new developments created in phases are entitled to potential savings.
The process itself requires specific documentation and can be time consuming.
Many Associations pay their taxes without review in order to meet the County's quickly approaching deadlines.
Deadlines for most Counties are March and October.
Taxes are considered delinquent by May and November.
This information is pertinent to Associations because fees and liens can be levied against the land when taxes are unpaid.
These liens can then be sold at auction, which gives the purchaser rights to foreclose on the property.
Paying taxes on time is important.
However, ensuring that they are the proper amount prevents undue costs to the Association.
In summary, Associations should ensure that property taxes are minimized to avoid additional costs to Homeowners.
In fact, many of our clients have saved and reclaimed thousands of dollars by having their taxes formally appealed.