Property taxes are vital for funding schools, libraries, police departments, fire departments, and public works like roads and parks. However, that doesn’t mean we enjoy paying them. If you are seeing them creep up in your area, here are five reasons that might be to blame and a few things you can do about it.
Home improvements
Renovating a bathroom or kitchen can revitalize a home and add to its worth, but it’s also the most common reason why your property taxes rise. Why? Improving your home makes it more valuable. That, in turn, increases your property taxes. Although your tax bill will go up when you renovate, the good news is that you will benefit from the update.
Revaluation
Communities periodically reevaluate properties. Revaluations are needed to make sure that the tax burden is spread equitably among the area’s homeowners. Revaluations are the second most common reason that property tax bills increase. However, a revaluation doesn’t automatically mean that your taxes will go up. For instance, if your community has been growing rapidly, more taxpayers may help offset a tax bill increase.
New schools
Building a new school is great for students and teachers, and for the community overall. However, it will come with a hefty price tag that is likely to entail higher property taxes.
Nearby home sales
If your neighbors sell their homes for more than expected, your property taxes may rise. That’s the unfortunate fact, but it’s out of your hands. Home sales affect what other houses in a neighborhood are worth. While that’s great for your property’s value when you decide to sell, it means a higher tax bill in the meantime. This is the least advantageous way your tax bill can increase, because you’re not actually benefiting from living in a nicer home. Instead, you will be paying higher taxes because your neighbors made more money than everyone thought.
Higher government budgets
One of the main reserves on which cities and counties draw to fund their budgets is the property tax. If government employees are owed a raise, or other budgetary needs increase, the residents’ taxes may need to be increased to help foot the bill.
So how can you, as a homeowner, push back and lower your rates (or, at the very least, make sure they don’t go up too much)? One way is to appeal your home’s property assessment. Every area has a defined appeals process. You should also make sure your property records reflect your home’s amenities accurately. If you do find mistakes, notify the assessor’s office and have the record corrected.