Owners tackling a remodeling project may want to consider how it could impact property taxes. Renovations could result in an increase in assessed value by the county assessor. Ordinarily in the Phoenix metro area any upward adjustment in assessed value would only occur after a sale. But due to a change in the law, the assessor can re-evaluate anytime a significant change to a property occurs. Adding square footage can be one of those events. And if the property had previously been undervalued, the improvements will allow the assessor to increase it to our version of market value, plus whatever amount is attributed to the change. For higher value homes, and commercial property owners, the effect on the property’s value could be significant. Luckily, unlike other parts of the country, in Maricopa County homes are under-assessed as a matter of policy, and value is only a factor in the complicated formula used in determining the amount of the property tax. Nevertheless, it may be wise for a property owner to consider in advance how a certain improvement might impact assessed value to avoid surprises later on.
WARNING: Some Improvements Can Raise Tax Bills.
by email@example.com | Jun 13, 2018 | Home Ownership, Taxes | 0 comments