The idea is simple enough: most houses have lost value. Who wants to pay taxes on what their house used to be valued at, rather than the lower tax for what it is now worth? Changing the tax bill associated with your house is as simple as appealing the assessment. Plenty of people have gotten on with doing just that: reports of appeals range from 10 percent in some counties to 90 percent in others.
But the number of appeals this year has slowed down the system in some counties. There’s a ripple effect likely to affect your taxes if you’re trying to appeal. You can deduct your real estate tax bill on your federal tax return. If you haven’t paid your real estate tax by Dec. 31, however, you won’t be able to take advantage of that fact on your 2008 return. If your federal tax return is looking particularly hairy, this may be a case of ‘get it in, while the getting is good.’