Understanding the increase in your property taxes

On Behalf of | Mar 1, 2022 | tax law | 0 comments

Homeownership can absorb a significant portion of your budget. You may find yourself strategizing for ways to pay your mortgage, complete renovations, maintain your landscape, perform repairs and pay taxes.

Property taxes, in particular, are a requirement every homeowner has. Receiving your yearly bill to see an unexpected increase may cause irritation and even confusion. Knowing why your property taxes increase can help you better understand what officials put your money toward.

Property renovations

Renovating your property is an excellent way to increase its value. Some examples of meaningful renovations include the addition of a bathroom, updating your kitchen, finishing your basement and completing a home addition. According to Realtor.com, home improvements are the most common reason for an increase in what you owe for property taxes.

Community upgrades

Another reason your property taxes may have increased is the addition of a new school in your community. Through an increase in what homeowners pay, local schools can complete meaningful projects. Other improvements in your community that improve its value can also impact your property tax rates. Rising home values and increasing desirability may reflect in your property tax bill.

Even though it is quite common for property taxes to rise, there are times when clerical errors or an assessment oversight may cause inaccuracies. If you have evidence to substantiate your concerns about an incorrect property tax requirement, you may consider appealing the amount you owe. If successful, you may receive a revised bill that accurately reflects your home’s value after an assessment of your property. An attorney can help you through this process.