Question on Property Taxes

[d4mo]

So from what I understand is that property taxes are based on the value of your home. If that is true, then if you buy a house and do improvements to it, do your taxes go up?

For instance, a house doesn't have a deck and you build one? Or add a tool shed to the back yard? Are your taxes going to go up because your house is worth more now?

Same goes for inside improvements. If you bought a house with an unfinished basement and you finished it.

 

[XZeroII]

Yes. Before you do any major work on your house, you need to get a building permit. This alerts the city that you're going to be working on your house and (among other things) lets them know that they need to re-asses your house. They will send an inspector to your house and they will walk through it making notes. Then they will compare this to other houses in your area and update the value of your house.

 

[DrPizza]

Precisely why you don't get a building permit for interior work. Do you really think the city has records on whether your basement is finished or not - and do you think they're going to find such records when you go to sell your house in 20 years? Outdoor work - deck, new addition, etc. - permit.

 

[Uppsala9496]

As DrPizza said, don't get one for inside work; just for exterior work.
I'm in the process of finishing updating my last bathroom and no permit for me.

 

[GeekDrew]

Precisely why you don't get a building permit for interior work. Do you really think the city has records on whether your basement is finished or not - and do you think they're going to find such records when you go to sell your house in 20 years? Outdoor work - deck, new addition, etc. - permit.

My county does have records on whether the basement were finished, how many fixtures (plumbing) your house had, etc., at the last assessment.

 

[marvdmartian]

Different locations = different requirements for permits

Around here, if you pour a slab and put up a shed, it's an improvement, and you'd better have pulled a permit. Not that anyone will bother inspecting the work after you're done (unless there's electrical or plumbing work done, which can only be done by a licensed contractor here). But they will add to your property value. On the other hand, put a shed on a skid, and it's considered temporary, and won't add to the value. No matter how long it sits there.

Finishing a basement (in the few homes around here that have them) would probably not hurt you in higher taxes, until you go to sell the home, and are trying to sell it for what the city says your square footage is, PLUS the square footage of the improved area (garages & basements are considered unimproved, so don't add as much to your home's value). Same as if you decide to close off and finish your garage (like my home has had done by a previous owner). Once that space is no longer "unimproved", it counts toward the square footage of the living area, which raises your taxes.

 

[Sluggo]

Around here, if you pour a slab and put up a shed, it's an improvement, and you'd better have pulled a permit. Not that anyone will bother inspecting the work after you're done (unless there's electrical or plumbing work done, which can only be done by a licensed contractor here). But they will add to your property value. On the other hand, put a shed on a skid, and it's considered temporary, and won't add to the value. No matter how long it sits there.

Yes, we built a pool cabana/shed in our backyard. Cost was about $5,000 with labor and materials. Sent us a BS letter that said they were upping the value on our house by about $25,000.

 

[BarkingGhostar]

My county is now looking for visual differences via small plane imaging. Pour some additional concrete without permit, fine, re-assessment, etc. Permit in my county is 5% of money spent to renovation/upgrade, but that is pale in comparison to what the recurring increase in property taxes will be.

 

[mizzou]

you have a section in your taxes for "improvements" which I believe includes structures like pools, sheds, etc.

 

[SandEagle]

how come property taxes don't go down when the value of the home goes down? i am getting raped here on taxes in this asshole town.

 

[Bignate603]

how come property taxes don't go down when the value of the home goes down? i am getting raped here on taxes in this asshole town.

Your taxes will only go down if the value of your home drops faster than everyone else around you.

 

[Ronstang]

how come property taxes don't go down when the value of the home goes down? i am getting raped here on taxes in this asshole town.

Simple...governments don't earn money, they steal it. Times are tough and they have votes to buy with entitlements and that takes cash, your cash. Unless you find a way to force them to devalue your home they will keep on raping you as that is all they are really good for to the productive in society.

 

[Bignate603]

Simple...governments don't earn money, they steal it. Times are tough and they have votes to buy with entitlements and that takes cash, your cash. Unless you find a way to force them to devalue your home they will keep on raping you as that is all they are really good for to the productive in society.

Yes, and paying for schools, roads, police, and all the other public services don't cost a thing. All those property taxes just go to buy votes.

 

[waggy]

Simple...governments don't earn money, they steal it. Times are tough and they have votes to buy with entitlements and that takes cash, your cash. Unless you find a way to force them to devalue your home they will keep on raping you as that is all they are really good for to the productive in society.

yeah...those schools, police, fire department, roads, etc etc don't cost money eh?

 

[Ronstang]

Yes, and paying for schools, roads, police, and all the other public services don't cost a thing. All those property taxes just go to buy votes.

You just listed things that are abused to buy votes and give out jobs to people who could not make it in the private sector. If the value of real estate goes down so should the taxes and the taxing authority should tighten it's belt to compensate. They sure don't have a problem raising them.

 

[GeekDrew]

Simple...governments don't earn money, they steal it. Times are tough and they have votes to buy with entitlements and that takes cash, your cash. Unless you find a way to force them to devalue your home they will keep on raping you as that is all they are really good for to the productive in society.

You're full of shit. Governments have to justify values of homes during a board of revision (or equivalent). Taxes are proportional to the other homes around you, not necessarily by appraised value alone. Tear down part of your house, and its value would probably be reduced, lowering your taxes.

Contrary to your belief, not all governments exist solely to screw the people.

 

[GeekDrew]

You just listed things that are abused to buy votes and give out jobs to people who could not make it in the private sector. If the value of real estate goes down so should the taxes and the taxing authority should tighten it's belt to compensate. They sure don't have a problem raising them.

Yeah, and a lot of people in the private sector would never make it in the public sector.

If you want your taxes to go down as a result of decreased value, then you should introduce legislation to change the method of taxation accordingly.

 

[Bignate603]

You just listed things that are abused to buy votes and give out jobs to people who could not make it in the private sector. If the value of real estate goes down so should the taxes and the taxing authority should tighten it's belt to compensate. They sure don't have a problem raising them.

The value of real estate is not directly connected to the costs of the services that the people they serve want their government to provide. Just because houses are worth 10% less (just an example, some places in the US went down more than that) doesn't mean it costs 10% less to plow the roads when it snows, or 10% less to educate their kids. There are plenty of fixed costs for services that people want their government to provide.

Your accusations that government employees are incapable of surviving in the private sector is a typical rant that happens on the internet constantly. Sure there are plenty of bad government employees, but there are plenty more terrible ones in the private sector. Government jobs are just like any other job, there are good people and bad people. If you can't see terrible workers in the private sector or good workers in the public sector you're blind.

 

[spidey07]

You can always prove your house is worth less than the valuation and get your taxes down. Of course they won't lower it for you, you have to fight it. Normally a straight forward process. You can even pay for tour own appraisal and bring that as evidence. With local and state budgets in a bind a lot ate finding "free money" by raising valuations hoping homeowners don't object.

 

[waffleironhead]

In my area, when a house is sold the taxing authority does a reassessment. typically they do it a few months after the house is sold. My guess is that they are waiting to catch all of the improvements that new owners do with or without permit. If you can stand to wait them out then do so. I didnt wait to redo the kitchen and bath, but then I refused the assessors entry to my house. They just ended up doing a visual inspection from the exterior and adding a small bit to my value.

 

[Chaotic42]

You're full of shit. Governments have to justify values of homes during a board of revision (or equivalent). Taxes are proportional to the other homes around you, not necessarily by appraised value alone. Tear down part of your house, and its value would probably be reduced, lowering your taxes.

Contrary to your belief, not all governments exist solely to screw the people.

True, but as long as they can take your house for failure to pay property taxes, you don't really own it. I'd rather them just cut property taxes all together and increase use taxes.

 

[waggy]

True, but as long as they can take your house for failure to pay property taxes, you don't really own it. I'd rather them just cut property taxes all together and increase use taxes.

my big issue with property taxes is they are going up fast and high.

i know a few older people that have lived in there house for 30-60 years and was forced to sale since they are retired and can't afford the $300-400 a month in property tax. many are moving out of state or in wiht there kids.

i hate to see how much i pay in taxes in 10-20 years.

 

[CPA]

Yes. Before you do any major work on your house, you need to get a building permit. This alerts the city that you're going to be working on your house and (among other things) lets them know that they need to re-asses your house. They will send an inspector to your house and they will walk through it making notes. Then they will compare this to other houses in your area and update the value of your house.

Not always true - I don't need any permits in the county I live in and the fact that I live out of city limits.

However, that doesn't stop the county tax appraiser from upping my value on any additions I do, assuming they see them.

 

[grohl]

Last year I bought our home for below assessed value. Filed an appeal with info from the closing and saved about $800 a year. Protesting values is not too hard, usually. Get a relator friend to pull comps from the area and file yourself. Easy way to save some money.

At least property taxes are deductable. My state does not have a "state tax" but make up for it in property taxes.

 

[Gunslinger08]

You can always prove your house is worth less than the valuation and get your taxes down. Of course they won't lower it for you, you have to fight it. Normally a straight forward process. You can even pay for tour own appraisal and bring that as evidence. With local and state budgets in a bind a lot ate finding "free money" by raising valuations hoping homeowners don't object.

My county lowered my assessed value themselves last year.