Ignite FB Tracking PixelUnderstanding the basics of property tax - Ronald Bixby - Realtor with Realty ONE Group Dockside
Ronald Bixby - Realtor with Realty ONE Group DocksidePhone: (203) 240-6740
Email: [email protected]

Understanding the basics of property tax

by Ronald Bixby - Realtor with Realty ONE Group Dockside 10/02/2023

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New property owners might wonder, "Do you have to pay property taxes forever?" Unfortunately, the answer is yes - you still need to pay for community and municipal services through taxes even after paying off your mortgage. However, there are ways you can potentially reduce your property tax bill and ease the burden of ongoing costs.

To help you understand a bit more about property taxes, here are some of the basic facts to know:

What home improvements increase property taxes?

Many renovations and upgrades increase the overall value of your property, which in turn can increase your property taxes. The changes you can expect to increase your bill include:

  • Additions to your home's living space.
  • Structural changes resulting in more bedrooms.
  • Decks & other attached outdoor structures.
  • Outbuildings like sheds or accessory dwelling units.
  • Finishing a basement or attic.

Ask for your property tax card

Tax cards allow homeowners access to information about what the town has collected about the property. The cards contain data on the size and precise dimensions of the property, as well as the size and types of furnishings in your property.

Other documents may contain sections describing special features and notations about improvements to existing structures. Take note that the card may have a number of errors; bring them to your tax assessor for further consideration and investigation of the matter.

Understand your tax bill

Property taxes are determined by two important variables: tax rates and current market values. Cities, counties and states can all have different tax rates, and some municipalities change their rates every year.

If you are concerned you are paying too much, investigate your local government's process for appealing your bill. The more familiar you are with your property tax bill, the easier you'll be able to spot any potential issues.

What's the best way to reduce property taxes?

While the tax rates are determined by local governments, there are some ways individual homeowners can reduce their property taxes. One of the simplest ways is to limit the amount and scope of your home improvement projects. Consider the impact each potential improvement will have on your property value and adjust your plans accordingly.

Another way to reduce your property taxes is through exemptions. There are tax exemptions available for homesteaders, seniors, veterans and some types of agricultural property. To potentially save a bundle, investigate whether your property might be eligible for an exemption.

While you do have to pay them forever, better understanding property taxes helps you make better financial decisions as a homeowner.

About the Author
Author

Ronald Bixby - Realtor with Realty ONE Group Dockside

Hi, I'm Ronald Bixby and I'd love to assist you. Honor, Respect, and Integrity...These are qualities that were instilled in a small town in upstate NY and reaffirmed in the US Navy. I was raised in a town called Horseheads. After graduating High school, I decided to see the world and I went into the Navy. Although I wanted to see the world, I ended up joining the submarine force and unfortunately, they don't have too many windows on subs! After getting out of the Navy, I found myself with an opportunity to get into the restaurant business and that's where I spent the next 30 years. I am blessed with an amazing wife, who is my rock, 4 beautiful daughters, and a son... Parenthood has a way of keeping you on your toes! However, thinking that I was missing something, I decided to make a change and started exploring the Real Estate business, and the more I looked into it, the more I knew this was the right profession for me. I like to help people and assisting a family buy or sell a home is a fantastic opportunity to do just that. If I can make someone half as happy as I am...it's a great day. Let me help you be happy.