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What Are The Property Tax Implications of Renovating Your Home?

<a href=”https://www.trademarkrenovations.com/wp-content/uploads/2014/12/historichomeslider61.jpg”><img src=”https://www.trademarkrenovations.com/wp-content/uploads/2014/12/historichomeslider61-300×85.jpg” style=”padding-right: 10px;” property=”” tax=”” width=”300″ height=”85″ class=”alignleft size-medium wp-image-1039″ /></a> Do you know what influences taxes? If you do you’re probably one of the few who do. Things<!–mep-nl–><!–mep-nl–>like sales tax are easy to understand, but when it comes to property taxes, everybody seems to <!–mep-nl–><!–mep-nl–>be confused. The truth is that nobody needs to be. Simply put, property taxes are a influenced <!–mep-nl–><!–mep-nl–>by two things, the assessed value of a home and the property tax rate of the county or town that <!–mep-nl–><!–mep-nl–>the home is located in. Unfortunately, this is where it ceases to be simple.<br /><br /><!–mep-nl–><!–mep-nl–>Dealing and Smoke­Filled Rooms<br /><br /><!–mep-nl–><!–mep-nl–>Most people would agree that the formula above is pretty simple. Unfortunately, there’s more to <!–mep-nl–><!–mep-nl–>it than this. The second part of the equation is influenced by a lot of factors that are largely <!–mep-nl–><!–mep-nl–>beyond our control. Property taxes are the number one source of revenue for most jurisdictions. <!–mep-nl–><!–mep-nl–>Since this is the case, anytime there is a reduction in revenues from other sources, such as <!–mep-nl–><!–mep-nl–>state and local budget cuts that fund public services, increases in public employee benefits and <!–mep-nl–><!–mep-nl–>others that reduce available money, property taxes are usually increased to make up for the lost <!–mep-nl–><!–mep-nl–>funds. <br /><br /><!–mep-nl–><!–mep-nl–>What About Remodeling?<br /><br /><!–mep-nl–><!–mep-nl–>Most of the factors listed above are beyond the control of most taxpayers. The factors that <!–mep-nl–><!–mep-nl–>taxpayers can control is what is called the assessed value of their home. For example, many <!–mep-nl–><!–mep-nl–>home only have one bathroom, which makes for a difficult living situation. And what could be <!–mep-nl–><!–mep-nl–>easier solve this situation than to add a bathroom. This might be good for family harmony, but <!–mep-nl–><!–mep-nl–>doing so also increases the value of a home, which also increase the assessed value, a major <!–mep-nl–><!–mep-nl–>determinant of your property taxes.<br /><br /><!–mep-nl–><!–mep-nl–>The most obvious point in all of this is that property taxes are a double­edged sword. You want <!–mep-nl–><!–mep-nl–>the value of your home to go up so you can eventually sell it for a higher price, but when that <!–mep-nl–><!–mep-nl–>value goes up, your taxes also increase. How can you solve this problem? First, be nice to the <!–mep-nl–><!–mep-nl–>assessor. If there’s an in­house assessment, give him a drink and treat them like a guest. This <!–mep-nl–><!–mep-nl–>might help to minimize what “excellent” condition your home is in. The other alternative is to <!–mep-nl–><!–mep-nl–>affect the process. When you vote, make sure you know what a candidate’s tax position is, and <!–mep-nl–><!–mep-nl–>vote with this in mind. Your wallet will thank you for it.