Why Property Taxes Go Up (No Matter Where You Live)

by Apr 30, 2018

No homeowner likes to pay their property taxes.  Each time this bill rolls around homeowners are groaning to themselves about the amount of money they need to dish out.  

But the reality is that property taxes are important for the neighborhood.  They fund needed programs like the police or fire department, library, schools, and help pay for roads.  

Still, even though they are a much-needed charge, no homeowner likes to see their tax bill increase.

Renovating the Home

Renovating a home is both good and bad for a homeowner.  A renovation, especially, in the kitchen or bathroom can often increase the value of the home.  The home will be more livable and comfortable for the owner as well. It can make living in the home more enjoyable.

With this increase in value, there is also an increase in property taxes.  When assessors evaluate a home they will look at what permits were obtained and will know when major renovations have taken place.  These renovations may add a hefty sum to the value of the home.

The higher the home is valued at, the more a homeowner will pay in property taxes.  This is good for a homeowner that is looking to sell their home. This increased value will make it easier for them to sell at a higher price.  However, they have to foot the higher property tax bill until the home is sold.

Appraisers Evaluating Homes

There is no one set value a home will have.  The county will periodically evaluate the value of homes within their county.  This can either raise or lower the value of the homes in the area and may increase or decrease property taxes for the homeowners.

An appraiser will review many properties in the area and determine how property taxes should be divided between homeowners.  These re-evaluations are in place to ensure taxpayers are not paying more than their share of taxes.

Many factors go into a re-evaluation.  In other words, it is not only determined by the renovations done on the homes in the area.  It focuses on the size of the homes, what style they are, and the renovations that have taken place.  They will also consider any new housing that has been built within the neighborhood.

Other Owners Are Selling

When selling a house the homeowner’s goal is to sell at the highest value possible.  If many homeowners have been selling above their home’s value this can push up the value of all the homes in the area.  When evaluating a home’s value an appraiser takes into consideration the sale values of homes in the area.

If many owners are deciding to sell at a high value then any owner that is staying in the neighborhood will see an increase in property taxes.  This is a great time for someone to sell their home since there are no renovations needed to sell the property at a higher value. The home is worth more without any of the work that is typically put in.

A More Desirable Neighborhood

There are many reasons people move to a certain neighborhood.  One major reason is the school district. A new school can skyrocket the value of the homes in the area.  Families will be flocking to get a house close to a good school. This can help a homeowner who wants to sell but can cause sticker shock for a homeowner who is paying property taxes.

The property taxes in the area are likely to increase because the county needs to pay for the new school.  It also increases the value of the homes in the area. A more desirable location is harder to buy into because the prices will be increased.

Put It To A Vote

There are instances where homeowners foot the bill of their government officials.  If the county needs to give their officials raises they may increase property taxes to help offset these costs.  Each county will have limits in place to make sure this increase is not too great.

Most counties will put it to a vote to increase taxes.  There may be a slight increase each year. However, a significant increase will usually be up to the residents in the area.  They will need to vote to either approve an increase or to deny the proposition.

Increasing property taxes are not fun for homeowners, especially, those that already struggle to pay their taxes.  In most cases, property tax increases stem from raising the value of the homes in the area. This is good for homeowners that want to sell.  A homeowner that is comfortable in their home may have to spend a little more money each year to continue living in the neighborhood.

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