Can Property tax increase over the 20% if house is expanded? (New York: assessor, buyers)
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I was just reading the other thread about how property taxes can't go up more then 20% over 5 years.
If I purchased a small 1 story home that had that 3-4K in taxes, then build up and built out; since property value would double, is the county still restricted from increasing my taxes past the 20% mark? You can essentially go from a 600sq ft home to 1800 sq ft and only pay taxes for under 5K?
I was just reading the other thread about how property taxes can't go up more then 20% over 5 years.
If I purchased a small 1 story home that had that 3-4K in taxes, then build up and built out; since property value would double, is the county still restricted from increasing my taxes past the 20% mark? You can essentially go from a 600sq ft home to 1800 sq ft and only pay taxes for under 5K?
I believe, as long you don't change the footprint of the home, you may avoid an immediate increase in your assessment.
My neighbor knocked down the original structure--a ranch-style home built in the 70's--leaving only the rear wall. Apparently this was to keep the assessment the same. Then he built out a 3800 sq ft home. The assessment stayed the same for about two years, then the taxes took off and today, he pays a huge tax bill.
Otherwise, building out is like committing tax payer suicide, here on LI.
I was just reading the other thread about how property taxes can't go up more then 20% over 5 years.
If I purchased a small 1 story home that had that 3-4K in taxes, then build up and built out; since property value would double, is the county still restricted from increasing my taxes past the 20% mark? You can essentially go from a 600sq ft home to 1800 sq ft and only pay taxes for under 5K?
If you doubled the SF in the home, a 20% increase is nothing.
I believe, as long you don't change the footprint of the home, you may avoid an immediate increase in your assessment.
My neighbor knocked down the original structure--a ranch-style home built in the 70's--leaving only the rear wall. Apparently this was to keep the assessment the same. Then he built out a 3800 sq ft home. The assessment stayed the same for about two years, then the taxes took off and today, he pays a huge tax bill.
Otherwise, building out is like committing tax payer suicide, here on LI.
Most - if not all - Towns have changed that. When I sold my last house, the buyers did that and built a McMansion; a year after they completed the project, the Town changed their regulations and now it's no longer a benefit to keep a wall up.
No need to shout. Just wondering. New to long island. Figured if you expanded, then they can raise taxes to whatever they felt fit. =)
edit:
I should say, not just new to L.I. New to home ownership.
Sorry, wasn't meant to be a "shout".
Talking about Town of Huntington, there's a phase-in period of increased RE taxes for certain expansions/improvements. Here it is from their website:
Can I get Information about the Home Improvement Exemption?
• The assessment increase for residential construction and home improvements that add taxable value to an existing home can be phased-in over nine (9) years. The maximum units of assessed value that may be phased-in is $1,696 (one thousand six hundred ninety-six). Eligibility Requirements:
1) Property must be a one or two-family residence.
2) Construction is current and has all required permits.
3) One-time application must be filed timely (on or before March 1) to be considered for the following December’s property tax bill.
I believe, as long you don't change the footprint of the home, you may avoid an immediate increase in your assessment.
My neighbor knocked down the original structure--a ranch-style home built in the 70's--leaving only the rear wall. Apparently this was to keep the assessment the same. Then he built out a 3800 sq ft home. The assessment stayed the same for about two years, then the taxes took off and today, he pays a huge tax bill.
Otherwise, building out is like committing tax payer suicide, here on LI.
What area was he able to build a nearly 4k sqft home?
It takes 2 years for the reassessment to end up as your new bill even if you do it through the proper channels. We finished our project in 2011 and are only now paying a higher tax bill. The home improvement tax exemption that lasts 8 years has helped though (Nassau County, Long Island New York).
Quote:
For the first year of the exemption, 100 percent of the assessed value of the improvement is exempt. In the second year 87.5 percent; in the third year, 75 percent; and so on.
On top of that, I was able to challenge the new assessment successfully and our taxes will drop next year.
Before the job, I called the assessor to get an idea of my potential tax increase. He basically said if you improve your value (assessment) by 50%, your taxes will go up 50%. It seems to be true.
Quote:
Can Property tax increase over the 20% if house is expanded?
My home was originally ~1100 sq ft, I added a 2nd floor for a total of 1860 sq ft. My taxes more than doubled as a result. Footprint has nothing to do with the tax increase, it's the overall assessed value of the home. Footprint may be a part of the overall calculation, but not changing the footprint of our home did not spare us the increase. You would be best served to get an estimate from your town on what an addition will end up costing you.
Thanks everyone. Was just curious. Definitely have no money left over after this home purchase to consider expanding. Though it would be interesting to find out if smithtown has a similar 8/9 year exemption
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