10 Controllable and Uncontrollable Factors In Property Tax Increase

Posted by Jill Noelle Olandria on Feb 8, 2017 11:30:00 AM

One of your first steps in fighting a property tax increaseis gaining information about the factors that affect it. You will then have the opportunity to act on the factors within your control, which is better than worrying about the factors beyond your control. You will find that, in doing so, your tax bill can be significantly reduced. 

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5 Controllable Factors

You should be more concerned about these controllable factors. Many people can provide reliable information about the specific impact of each of these factors on your property tax. For example, before making exterior home improvements, you can ask a property tax consultant about their tax-related effects.

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  • Home additions

Local assessors will not enter your property, much less your home, during their regular assessment inspections. Only the exterior areas of your property, such as the lawn, back yard, and façade, will be considered in the assessment. But since obvious home additions, such as extra bedrooms or bathrooms, require local permits, these can be a red flag for the local assessors.

  • Home renovations

Again, most types of home renovations will require local permits. The local assessors can use the information to increasing your property’s assessed value, even in the case of interior renovations. This isn’t to say that your home should remain as is but it pays to be aware of their impact.

  • Conversion into living space

Keep in mind that residences with more living space will likely have higher assessed values and, thus, their owners will see a significant property tax increase. Conversion of a garage to living area, or finishing a basement are examples.

  • Lawns, backyards, and gardens improvements

Technically, these improvements are considered as “land improvements” can increase the value of the property. Even a DIY project with just a few hundred dollars in materials can significantly increase appearance, desirability and property value! 

  • Additional outdoor buildings

Gazebos, sheds, pools, decks, and patios will beautify your home but your property’s value will also probably increase. You should be wary about the local permits that come with these outdoor buildings as the local assessors will use them.

Of course, we’re not saying that you should let your house and lot be the ugliest on the block. You have the right to these home improvement projects. Just beware of their impact on your annual property tax bill.

5 Uncontrollable Factors

You don’t have an immediate impact on these factors. You may, nonetheless, be able to contribute to reforms in the property tax system, such as by lobbying your local representative.

  • Budgets don’t vary with the real estate cycle

Taxes are the lifeblood of the government. When property values fall and budgets don’t change, the deficit must be reduced – and guess where the funds will come from? Your taxes, obviously. 

  • Local government services

Taxes are used in paying for basic government services, such as education and sanitation. Many property tax increases are, in fact, earmarked for public school systems, pension programs, and sanitation works, among others. 

  • Neighborhood improvements

Even when there have been no improvements to your home, its assessed value can still increase. The possible culprit: Your neighborhood improved, such as a tourism attraction or shopping mall opening up nearby.

  • Increase in neighbors’ home values

When your neighbor’s’ homes became better through improvements, your home’s value will also be affected, oftentimes for the worse for tax purposes. The local assessors will use your neighbors’ homes as comparable property in their assessment – unless, you step up and protest the value.

Conclusion

These factors may influence a property tax increase but you can also use them to further your assessment appeal. Ask a tax expert well-versed in this matter about them now! 

Georgia Tax Appeals

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