Property Tax - New Construction Closing in January (house, exemption)

[AndreaJ200]

We are in the process of building a home, and we are anticipating it should be complete towards the end of the year, but perhaps could slip into January.

If we end up closing in January 2016, will our 2016 property taxes be assessed on the land only OR the land and the improvements, based on the % of construction completed as of 1/1?

I have researched and am finding two different answers. One direction indicates that we would be taxed on the land only since as of 1/1/16 we would not have closed on the new construction. The other direction is saying that we would be assessed on the % complete as of 1/1/16 (about 90% complete I'm guessing).

Does anyone know for sure which one?

Thanks!!!

[Lowexpectations]

Jan is early enough in the year to tax at full value

[AndreaJ200]

Thanks Lowexpectations, but I'm pretty sure they cannot tax at the full 100% since the home would not have been complete as of 1/1, but can anyone link to a source that confirms they can/will tax as of the % complete on 1/1?

[baggiegenes]

I believe they will tax on the amount the appraiser believes it is complete. If the outside is mostly done and the appraiser does not walk the interior, the appraised amount may be full value. Just in case you need to protest I would walk the house after the first and take pictures of all incomplete work.

[Lowexpectations]

Originally Posted by AndreaJ200

Thanks Lowexpectations, but I'm pretty sure they cannot tax at the full 100% since the home would not have been complete as of 1/1, but can anyone link to a source that confirms they can/will tax as of the % complete on 1/1?

The appraisal won't be done in the first couple of months, if you close in January you should pay a full years worth of taxes on the full value, it would be more than 11 months of completion in the given year

[cheryjohns]

Full amount, at that point. Good news is the builder will want to push to get it done in order to close it before the end of the year, which means you will be able to close and claim homestead exemption for 2016.

[Rip808]

Originally Posted by AndreaJ200

We are in the process of building a home, and we are anticipating it should be complete towards the end of the year, but perhaps could slip into January.

If we end up closing in January 2016, will our 2016 property taxes be assessed on the land only OR the land and the improvements, based on the % of construction completed as of 1/1?

I have researched and am finding two different answers. One direction indicates that we would be taxed on the land only since as of 1/1/16 we would not have closed on the new construction. The other direction is saying that we would be assessed on the % complete as of 1/1/16 (about 90% complete I'm guessing).

Does anyone know for sure which one?

Thanks!!!

Full value. Our neighbors closed on 1/21 and were taxed on the full value of their home.

[trbstang]

Agree that it will most likely be full value, especially since you will be living in it when the appraiser drives by for the review in later Jan or Feb. We closed and moved in on March 31, and our value the first year was about 65% of the base home price, since it was about that much completed in January.

Good luck and hopefully you will close in December. I would push for it starting in November. Realize a lot of the labor might go home for the holidays, so there might not be a lot getting done in December. It can make a big difference in your tax cap with the Homestead valid your fist year.

[Houston321]

Just depends when the appraiser comes out, you have zero control. Just count on paying full value, and if you get lucky...it's a good thing.

[AndreaJ200]

Thanks everyone! Builder is definitely wanting to close before the end of the year and is saying October...But I'm thinking realistically it will be November or December. Slab is just being poured this week or next. And it makes sense to close this year so we can claim homestead for 2016.