As the economy improves, property prices are rebounding -- and so are property taxes. Most municipalities mail tax assessments each spring. Scammers are often close behind, posing as government programs that claim to lower your taxes for a fee.
Here is how this scheme works. You get a letter in the mail that appears to come from a government agency with names that include “tax adjusters” or “tax reassessment.” It’s really a private business, and it promises to get your property taxes reduced by disputing your tax assessment. For this, the business charges from $30 to hundreds of dollars. A typical letter reads:
“The XYZ County tax authorities may have made an error when they recently assessed your property. The mistake means you may be over taxed by $2,000. ... For 10 minutes and a one-time fee of less than $100, it’s well worth the potential savings of $2,000.”
As always, several variations of the scam exist. Sometimes scammers simply pocket the fee. Other times, it’s more a case of misleading advertising. The businesses file the paperwork on your behalf and/or provide you with a government report. However, in most cases, the business is simply doing something homeowners can do themselves for free.
Finally, some scammers use filing a property tax assessment dispute as a pretense to collect personal information for use in identity theft.
Reputable businesses are available to help you dispute your tax assessment, but watch out for the following warning signs. It may be a scam if the business:
Poses as a government agency.
Requires an upfront fee instead of billing you after the service is rendered.
Guarantees it can lower your property assessment and/or taxes. You can file a dispute, but the local government needs to approve it.
Requests a certified copy of your property deed and charges you more than a few dollars for it.
Asks for your Social Security number or other personal information.
Scam artists look for opportunities to generate money for themselves and if they can create a sense of urgency or perceived savings for you, then they stand a much better chance of separating you from your hard earned money.
For more consumer tips you can trust, visit bbb.org.
Kelvin Collins is president/CEO of the Better Business Bureau of Central Georgia and the CSRA Inc., serving 41 counties in Middle Georgia and the Central Savannah River area. Questions or complaints about a specific company or charity should be referred directly to the BBB at 478-742-7999, www.bbb.org or by emailing firstname.lastname@example.org.