You may be paying more for improvements
You’ve saved the money and are ready to pay cash to build a new pool for your home. However, that’s just the beginning of your soon to be increased expenses which will include maintenance, higher utilities, and higher taxes.
Homeowners obviously benefit by a larger equity when their home increases in value due to appreciation. A not-so-obvious effect that will also more than likely take place is that their property taxes will increase. In most cases, a property’s assessed value is generally tied to market value to calculate the property taxes based on the tax rate for that year.
Similarly, a homeowner can affect the value of their home by making capital improvements. Some small items may never be recognized by the taxing authority but items that require a permit, certainly are brought to their attention. Items such as a fence, roof, remodeling, windows, or new rooms can easily increase the assessed value of a property.
Utah has an established time frame in which to challenge the current tax assessment. This must be done on or before September 15th of each year. The process is relatively simple and doesn’t require professional representation. It generally involves showing that there is an error which has overstated the value or that current comparable sales indicate a lower value. I have the process outlined in a simple document – please send me a note or reply to this blog if you would like an emailed copy.
Also, If you’d like more information or need the comparable sales data, please let me know. I would be happy to help you investigate the possibility of lowering your property taxes.
Much Success! Gary