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Why do property taxes increase?

Posted on: 26th Mar, 2004 05:18 am
In most states, the local governments levy real property taxes. The tax base is determined through a periodic re-appraisal of properties depending on the sales of comparable properties. These property taxes often increase due to the periodic re-appraisal of properties that are carried out in order to pursue horizontal equity and revenue growth.

The periodic re-appraisal of the assessed property value helps in raising the cost of exterior home improvement. Even if you make improvements on the interior part of your home, you may have to pay higher taxes when you property value is assessed.
I am planning to enclose my front step and entry door with a small vestibule. Will this increase my taxes?
Posted on: 02nd Jul, 2008 06:48 pm
Hi Guest.

Welcome to the forum.

You are making improvements in your property. So it will increase the property value. So that may also increase your property tax. But that is not the sole factor to consider. In this declining market, if the property value of your neighboring area has decrease then your property value will also decrease. So that may cause to decrease the tax amount. So I should suggest you to contact with an tax advisor.

Best of luck,
Larry
Posted on: 03rd Jul, 2008 02:56 am
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