If a property owner is successful in their appeal and the value of their property is reduced, they may be entitled to a property tax refund. The process for issuing property tax refunds varies by jurisdiction, but generally involves the following steps:
- The county appraisal district or local government agency responsible for property taxation will determine the amount of the refund based on the reduced value of the property.
- The agency will issue a refund check to the property owner or if the property owner's taxes are paid through an Escrow, the refund will be issued back to the Escrow account.
- If the property owner has already paid their property taxes in full, the refund check will be mailed to them. If the property owner is paying their taxes in installments, the refund may be applied to their remaining payments or credited to their account for future tax payments
It is important to note that property tax refunds may be subject to state and federal income taxes, depending on the jurisdiction and the circumstances of the refund. Property owners should consult with a tax professional or refer to their local tax authority for guidance on how property tax refunds are taxed.
If my appeal isn't finished, will I still need to pay my tax bill?
How does it work if I pay my taxes through an escrow?