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Old 03-23-2013, 10:06 AM   #1
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Property tax question


I have no idea where to post this question, so I'll try here!

I'm in the process of talking with a contractor to install an egress window in my basement. The contractor informed me that with a properly installed window that meets code, I can claim every sq ft in my basement as "livable space". I effectively doubled the size of my house.

But does that mean my property taxes will go up as well as soon as it's installed?

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Old 03-23-2013, 10:13 AM   #2
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I think it depends on where you live. In Canada, you can only list it as a finished basement....it does not figure into the sq footage of your house. In California, we don't have many basements......but I don't think it figures into the equation either...

To know for sure....call a real state agent...

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Old 03-23-2013, 10:16 AM   #3
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That's a question you should be asking at the tax office localy.
More then likly your going to need a permit for this anyway so there going to know about it at some point.
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Old 03-23-2013, 10:27 AM   #4
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Property tax question


Answer does depend on where you live. Around here, a basement is not considered living space unless it's finished.
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Old 03-23-2013, 10:32 AM   #5
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Property tax question


Property taxes are usually based upon the value of a property. Anything you do that increases the value of the property, whether you finish the basement or add some landscaping, can result in an increase in your property taxes. In our area, the municipalities report the project cost from the building permit to the taxing authority.
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Old 03-23-2013, 10:53 AM   #6
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Any area below grade can not be listed as living space. Like others have said you can list it as a finished basement if in deed finished but it cant be added to the sq footage of the property no way shape or form.
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Old 03-23-2013, 10:59 AM   #7
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Any area below grade can not be listed as living space. Like others have said you can list it as a finished basement if in deed finished but it cant be added to the sq footage of the property no way shape or form.
Not correct Jason.

We have split levels that are below grade that include living space that is included in over all square footage of a house. We also have walk out basements that also are included as living footage.

You have to be careful when you state absolutes.
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Old 03-23-2013, 11:04 AM   #8
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As said, ask your local taxing authority.

Here in the Twin cities, when you pull a permit you have to estimate the cost. Once completed it gets added to the estimated taxable value of your home.

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Old 03-23-2013, 11:47 AM   #9
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It's the weekend, so I'll have to wait to call any authorities. I was mainly curious if anyone has dealt with a similar situation.
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Old 03-23-2013, 11:55 AM   #10
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When dealing with a split level your basement is considered living space because your garage has an entrance into the basement making it living space. If there is no garage that has an entrance with the basement then it can not legally be used as living space. A walk out basement also falls under this because the entire basement is not below grade which is what I said in my first post. If the entire basement is below grade it can not be used as living space. My house and my in laws have the exact same house. When I say exact I mean exact everything. Only difference is they have a back patio door which makes their basement a a walkk out since their entire back part of their basement is above grade though the front is completly below grade. My entire basement is below grade. Their living space is 400 sq ft more than mine due to their basement being above grade. So it does matter on the situation.
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Old 03-23-2013, 12:14 PM   #11
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Property tax question


Quote:
Originally Posted by spaceman spif View Post
I have no idea where to post this question, so I'll try here!

I'm in the process of talking with a contractor to install an egress window in my basement. The contractor informed me that with a properly installed window that meets code, I can claim every sq ft in my basement as "livable space". I effectively doubled the size of my house.

But does that mean my property taxes will go up as well as soon as it's installed?
the real answer to this vage question is this. yes they will go up, when depends on the county assessors office gets around to coming over for a visit, Or as mentioned above from the permit they will send it on up to the assessors office. normaly it is right at around yearly or every six months last time I had my taxes raised was after two years. a few thing to do to help you out is 1. replacing a window does not normaly require a building permit, so your safe there. 2 build a nice 9 foot cedar fence around your home. Law states the assessor can't walk around your property with out your permission and they can't put a ladder on your fence to see what is behind it. so if you never pulled a permit and untill you sell the home you should and I use that very lightly not really see a increase in your taxes. Unless you went down to the permit office and told them, what your doing.
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Old 03-23-2013, 12:17 PM   #12
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Property tax question


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Originally Posted by spaceman spif View Post
It's the weekend, so I'll have to wait to call any authorities. I was mainly curious if anyone has dealt with a similar situation.
Don't call the Tax man and tell him you just doubled your sqf of your home
the less they know the better!
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Old 03-23-2013, 04:32 PM   #13
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Property tax question


Believe me, I'm not calling the tax office any time soon! They get enough from me, already!

I was just curious, based on what the contractor told me. I know laws are different state to state regarding claiming any sq footage from your basement. Some states say you can never claim it, some say you can claim it separately as "livable space" or "finished space", and others say you can claim it as part of the total sq footage if you have an egress or a walkout door. I'm trying to find out what's legal for my area, and it's not clear.

The contractor told me with a properly installed egress window in the basement, I could claim the sq footage on this house, effectively doubling the size, should I decide to sell it. I thought "Great!". But when I mentioned that to a co-worker, he said "But doesn't that mean your property taxes will also go up?" and I thought "Not so great!"

If this contractor gets the job, won't he have to file a permit with the city?
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Old 03-24-2013, 10:54 AM   #14
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Originally Posted by chitownken View Post
Property taxes are usually based upon the value of a property. Anything you do that increases the value of the property, whether you finish the basement or add some landscaping, can result in an increase in your property taxes. In our area, the municipalities report the project cost from the building permit to the taxing authority.
but they don't credit you for the stuff you took out. nor do they lower it for decreased value from the economy.

Quote:
Originally Posted by Nailbags View Post
the real answer to this vage question is this. yes they will go up, when depends on the county assessors office gets around to coming over for a visit, Or as mentioned above from the permit they will send it on up to the assessors office. normaly it is right at around yearly or every six months last time I had my taxes raised was after two years. a few thing to do to help you out is 1. replacing a window does not normaly require a building permit, so your safe there. 2 build a nice 9 foot cedar fence around your home. Law states the assessor can't walk around your property with out your permission and they can't put a ladder on your fence to see what is behind it. so if you never pulled a permit and untill you sell the home you should and I use that very lightly not really see a increase in your taxes. Unless you went down to the permit office and told them, what your doing.
from what i understand, for around here. if they want to inspect your property, and you don't let them. they "assume" you have the "best of everything" and tax accordingly.



Quote:
Originally Posted by Nailbags View Post
Don't call the Tax man and tell him you just doubled your sqf of your home
the less they know the better!
EXACTLY

Quote:
Originally Posted by spaceman spif View Post


If this contractor gets the job, won't he have to file a permit with the city?
HE probably will.

face the facts folks. the government(democrats) is praying on us, for their own benefit.
they would take nearly every dime you have, if they could get away with it.
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Old 03-24-2013, 11:32 AM   #15
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Property tax question


Just because the contractor files a permit with the AHJ does not mean your taxes are going to go up because of this project. Installing a larger window (egress window) is just that...installing a larger window. It does not change the status of the basement. You said in one of your posts that you "could" claim the additional living space. It does not mean you have to. If you decide to finish the basement then it can, depending on your lical laws, be added to the valuation of your home and affect your taxes.

In my areafinished basements are added to the valuation of the home. Not as total square footage but more as a feature like a fireplace might be.


Jason...at the risk of sounding like Joe, you realy need to add your location info to your profile. Differend laws are applied in different parts of the country.

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