Finishing Basement with minimal impact on prop. tax

[brookdaleresident]

Some towns ask for the cost of the job when applying for permits; mine does.

[tahiti]

Originally Posted by brookdaleresident

Some towns ask for the cost of the job when applying for permits; mine does.

ah, interesting. my contractor got the permits, whether he provided the cost then, I don't know. however, we did have scope creep, so we paid significantly more than the amount originally agreed to (and the cost given to the township, if they asked).

[brookdaleresident]

I really don't think it's fair to raise taxes based on what's paid. If I did the job myself, and didn't pay for labor (which in my case was the expensive part) then the reno would have cost much less. We had a real "gem" of a contractor also

[wileynj]

Originally Posted by brookdaleresident

I really don't think it's fair to raise taxes based on what's paid. If I did the job myself, and didn't pay for labor (which in my case was the expensive part) then the reno would have cost much less. We had a real "gem" of a contractor also

Permit fees are assessed by how much the work cost you - taxes are assessed on the improvement - the increased value in your home as a result of having a finished basement : )

[brookdaleresident]

Originally Posted by wileynj

Permit fees are assessed by how much the work cost you - taxes are assessed on the improvement - the increased value in your home as a result of having a finished basement : )

Thank you for clarifying; that makes sense. My town sent me an application for a deferred tax increase. They did ask for the amount again, so I assumed they would base the increase on that.

[sligogirl]

In Central NJ, I believe you do not need a permit to refinish a basement.
As long as you do not extend your home beyond it's present perimeters.
Once, you do apply for a permit, that is where your taxes will increase.
Concern with permits, is, if a bathroom is added, the Borough, town, wud like to see that it has been done properly, and, especially in my part of NJ, no bedrooms are added in the basement. Apparently, homeowners like to rent
basement apartments which are not on tax roll.

[BABAmommy]

Hi, They reassessed our whole township. They assumed that our basement was finished because at least 2/3 of the homes in our development have finished basements. I had an appointment with the tax assessor and it was adjusted without an inspection. It did effect our taxes because it changed the value of the house by almost $15,000.
A neighbor of mine, who is in real estate part time, says that it is considered a finished basement if their is air and heat in it.
I think it may vary by township. The best thing to do is to always go to the town hall and speak to the permit department.

[SPNARD1]

Not sure about property tax impact as I'm sure it varies from town/county etc.

One thing I cannot stress enough is that if your basement has a water problem...FIX THAT FIRST(before you even think of finishing the basement)...instead of just putting a subfloor.
This will save you a lot of headaches

Also, very important that you put a drain..in case of water heater malfunction etc.

Good Luck

[Stone28]

When I finished my basement in Cliffside Park I did not get an increase in taxes. I had to get a permit and was not allowed to do the work myself. They wanted licensed Plummers, Electrians, ect. So I hired a general contractor. Everything from the framing, insulation, electric, plumming and fire alarms had to inspected seperatly.

One other thing they insisted I get inspected was my chimminy. The Chimminy failed the inspection. I ended up having to go with Direct vent heat and hot water. I was angry at the time but now I'm glad I did it. It may have saved our lives.