What counts as finished sq/ft for property tax purposes?

[vi edit]

Is that an IL thing? Because around here we sure as hell include finished basements.

It's noted here, but it's not assessed with the "above grade" sq/ft. When it comes to listings, it can be listed on the MLS as sq/ft but it's designated as "basement/finished" and not part of the total living sq/ft.

 

[DrPizza]

I'm not certain, but with a new property, isn't the purchase price used to determine assessed value, rather than square footage?

 

[vi edit]

I'm not certain, but with a new property, isn't the purchase price used to determine assessed value, rather than square footage?

I don't know how that can apply to construction.

If I pay out of pocket for my foundation and put it in myself that could save me $30,000. If I do my own brick & stone work there's another $5,000 to $10,000 labor. If I do my own labor on tile& flooring I could easily trim off another $4,000. Doing my own painting is saving $4,000.

I could easily save/earn $50,000 in "value" by buying & doing things myself and that won't count towards the "purchase price" but it should still have "value" when it comes to an appraisal/market value.

 

[meltdown75]

here in Ontario, an unfinished allowance would apply to any unfinished areas of a residential structure, but the allowances aren't left on forever. the assumption is that the area will eventually be finished. if it is above grade, it counts towards the square footage of the home. unfinished basements are assessed as well, just assessed higher when they are finished.

you really need to talk to whoever does the property assessment there. i have no idea how it works in the US. also, i do commercial / industrial now but i did residential and farm for a long time. i could only provide you local regulations and anecdotes which would be of no help to you.

good luck... i own property too and my taxes are rediculous

 

[rh71]

We too have $12k a year in taxes but on a 450k home. The schools portion makes up $8k of it. As far as what really "counts" I would call the tax assessor's office - they were very helpful to me when I called them and asked how a dormer would affect my taxes. What it came down to was the home's value added... if I added 50 percent to my home's value ($675k) by putting in a 2nd floor and 4 bedrooms, that would also increase my taxes by 50 percent (+$6k). If your rooms aren't "rooms", do they really add value to your house? I would still say yes... that's if your taxes are done the same way as here.

One other thing to note - new construction homes here are taxed at a ridiculous amount. If you leave a part of the 1st floor foundation and built up from there, it wouldn't be a new construction and you get a break that way. We're talking like a $5k tax difference. Coincidentally was speaking to a builder last night at his build site.

 

[Zargon]

Is that an IL thing? Because around here we sure as hell include finished basements.

could be, it certainly doesnt count

sadly my basement is only half buried so it counts 🙁

I pay 315 a month in taxes on a house they claim is worth 152,000

 

[boomerang]

In my area,
HVAC + Electrical + insulation = Finished... They would bill you for it.

Yeah, it really depends on where you live IMO. You may not even get an occupancy permit with that second space you described unfinished. The garage they may let slide.

But we're all just guessing. You're probably going to have to tip your hand and ask the people that actually make these decisions.

I know when I built my home I was wondering what value they would use for tax purposes. Ended up they had it valued to the penny, the total of what I paid for the property and the contract price I had with the builder. It was my responsibility to put in the lawn, the landscaping and the driveway, so...I guess I sorta came out ahead.

 

[ebaycj]

Is that an IL thing? Because around here we sure as hell include finished basements.

Well if he's smart he'd leave it unfinished before assessment, just to be sure..

But even if it is finished, in IL (for sure), basements only count if they are finished walk-out basements, and even then, i think it's only counted as half the square footage.

 

[vi edit]

I know when I built my home I was wondering what value they would use for tax purposes. Ended up they had it valued to the penny, the total of what I paid for the property and the contract price I had with the builder. It was my responsibility to put in the lawn, the landscaping and the driveway, so...I guess I sorta came out ahead

Yeh, I talked to a realtor who does a little building on the side and they said that it would probably be contract + land. Doesn't really matter what's finished or not. Which I still find odd given the complexity and workaround you can do under a construction contract.