Common Factors That Affect Property Tax Bill

Property taxes tend to change every year in many states. Certain factors can make these changes to be either minimal or significant.

Even though you don’t have 100% control over your property taxes, there are some steps you can take to lower them.

1. Home improvement projects

Homeowners often delve into different home improvement projects to boost the value of their properties. At times, they may not even have plans to sell or rent their homes immediately.

Home improvement projects such as adding extra space, building a home office, remodeling your bathroom or kitchen will influence your property tax. The good thing is that you have control over these factors. So if you want to pay a lower property tax come 2022, then avoid delving into any major project.

This is because your assessor will easily notice them. However, painting your rooms, replacing your carpet or hardware won’t have any effect on your tax bill.

2. The value of your property

Some homeowners often wonder why their property taxes keep increasing as their home value drops. Your property value will determine your tax to a great extent, but it’s not the only important factor to consider.

3. The market value of other properties

The market value of other homes in each taxing district is subjected to change. Therefore, if there is an increase in the market value of properties in your neighborhood, then this will likely affect your tax.

Apart from that, get ready to pay more tax if your neighborhood experiences an increase in real estate sales. Another thing is that major improvements in your neighborhood can increase property taxes.

4. Government policies

The pandemic dealt a huge blow on local economies too and many local and state governments are still recovering. Your property tax helps to build public parks, schools, libraries, and other infrastructure. It is also used to improve and maintain these facilities.

Local government authorities may decide to increase property tax to help fund these projects if they don’t receive enough funding from the state government. You’re required to pay the amount whether you use the services or not.

5. Relocating to another location

Ensure that you research property taxes before moving to another city. This will help to avoid any unpleasant surprises. More so, you’ll find it easy to factor in other costs and weigh your options early on.

You can be lucky to find a location that won’t require you pay a higher tax bill. Nevertheless, this doesn’t mean you shouldn’t do your due diligence. It’s advisable to contact a local realtor to help you understand how property taxes work in your preferred location.

Some states assess the property values annually, while it takes others every two years or so.

Your best bet is to review your tax bill and assessment carefully if you notice an increase in your taxes. Once you’re convinced that your home is over-assessed, start working towards appealing the assessment.

Working with a professional tax advocate will make a huge difference in the long run. It’s a sure way to save time and avoid making expensive mistakes as you apply for either personal or commercial property tax relief.