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Old 01-04-2013, 07:48 PM   #16
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How to build a garage without hurting property taxes?


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Originally Posted by creeper View Post
A property tax assessment is done by the governing body that sets tax rates. As Dawg says they may not even come in and they don't nessessarily care about the state of the interior.

A property appraisal is performed by a licensed appraiser who has been hired by the bank for lending purposes. They go through the entire place and things like a new roof, quality built in appliances, and interiour finishes, ect. make an impact on the final value.
This is party what I was wondering. Do you know what the government bases the tax on if not an appraisal? Maybe just last sale amount and set amount based on the addition?

I might ask when I go to get the building permit, but I don't want to make them suspicious. If I act super concerned about the tax rates / permits, then build a barn at the end of my driveway, without power or water, they might think I'm trying to pull one over.

And in regards to danpicks story, I'd like to point out that, while the guy did get his taxes reassed, he still saved thousands over getting the permits. Permits don't just cost money in terms of taxes, you spend money on the permit itself, and extra time / money to make sure stuff is to code.

Not saying there always bad, but when your doing something like moving a hot water heater, it's crazy to get 2 building permits (I'm not even sure if people are allowed to work on gas lines, might need 3 building permits and a contractor)

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Old 01-04-2013, 08:00 PM   #17
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How to build a garage without hurting property taxes?


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Originally Posted by tibberous View Post
This is party what I was wondering. Do you know what the government bases the tax on if not an appraisal? Maybe just last sale amount and set amount based on the addition?

I might ask when I go to get the building permit, but I don't want to make them suspicious. If I act super concerned about the tax rates / permits, then build a barn at the end of my driveway, without power or water, they might think I'm trying to pull one over.

And in regards to danpicks story, I'd like to point out that, while the guy did get his taxes reassed, he still saved thousands over getting the permits. Permits don't just cost money in terms of taxes, you spend money on the permit itself, and extra time / money to make sure stuff is to code.

Not saying there always bad, but when your doing something like moving a hot water heater, it's crazy to get 2 building permits (I'm not even sure if people are allowed to work on gas lines, might need 3 building permits and a contractor)
If you'd like to know as soon as possible then just phone them. Trust me they get general inquirys all the time. Just don't give your name and address if you are worried. You may even find it on your town's website.

If they can see the barn they will see it regardless if you made inquires or not.
Tell me your town name and I will make the call
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Old 01-04-2013, 08:49 PM   #18
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How to build a garage without hurting property taxes?


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Originally Posted by tibberous View Post
This is party what I was wondering. Do you know what the government bases the tax on if not an appraisal? Maybe just last sale amount and set amount based on the addition?

I might ask when I go to get the building permit, but I don't want to make them suspicious. If I act super concerned about the tax rates / permits, then build a barn at the end of my driveway, without power or water, they might think I'm trying to pull one over.

And in regards to danpicks story, I'd like to point out that, while the guy did get his taxes reassed, he still saved thousands over getting the permits. Permits don't just cost money in terms of taxes, you spend money on the permit itself, and extra time / money to make sure stuff is to code.

Not saying there always bad, but when your doing something like moving a hot water heater, it's crazy to get 2 building permits (I'm not even sure if people are allowed to work on gas lines, might need 3 building permits and a contractor)
Again, we don't know your area. In my state, it's based on what the town assessor figures your home is worth. It's worth more if you have hardwood floors, granite countertops, etc. As far as outbuildings go, if you are going to have a cement floor, that is a permanent strutcure, and you will be taxed like Dawg said, no matter what you call it.

I have sometimes been pleasantly surprised when I go to Town Hall and am told I *don't* need a permit. In my state, this is sometimes if you are replacing an existing structure, and some structures require no permit if they are less than some amount of square feet.

Yup, you need to start at Town Hall. And I can tell you, once you start putting up a structure, THEY WILL FIND OUT. Town assessors spend part of their time driving around looking for people that don't get permits and are building. It's not worth it, get the permit and pay the taxes. you'll have to anyway eventually!
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Old 01-04-2013, 09:03 PM   #19
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How to build a garage without hurting property taxes?


Why don't you just dig out a ramp into your basement and header it off, put in an overhead door? This would make it easier to get materials down there for your tub or pool or whatever.
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Old 01-05-2013, 12:31 AM   #20
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How to build a garage without hurting property taxes?


I can see the OP's desire to save this money is going to override most sane logic. I think the question you need to ask yourself is whether or not you feel theft is justifiable. Really that's what it comes down to. If you don't think that paying a higher property tax is appealing then don't build. It really is a fairly simple solution. Rent a building for your business and see if that comes out cheaper in the long run.
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Old 01-05-2013, 07:39 AM   #21
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How to build a garage without hurting property taxes?


Have you bothered to check to see if you can legally operate a business on your residential property? In many places you cannot. But assuming you can, the additional taxes on the new building could be deducted as a business expense. So could some portion of your utilities. I was able to do this when my wife had a business teaching children's art classes in our basement. I had remodeled part of it to create an art studio/classroom that was used for nothing else.
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Old 01-06-2013, 09:41 AM   #22
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How to build a garage without hurting property taxes?


Might want to find out how big the fine is for running a business in a residential zone without getting the variance. if your property is zoned residential only.
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Old 01-06-2013, 04:02 PM   #23
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How to build a garage without hurting property taxes?


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Might want to find out how big the fine is for running a business in a residential zone without getting the variance. if your property is zoned residential only.
That what I did check and asked for variance due I have combation resdentail and commercal zoned property.

It took a little while but I got thru with it without major hiccups and they were kind engough to explain all the details pretty clear cut on the situation what I have and I am one of few bussiness owner on that lakefront area do allow that. ( I was one of the last two peoples can get that in grandfather clause after that the rules really tighten up alot )

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Old 01-06-2013, 04:25 PM   #24
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How to build a garage without hurting property taxes?


You can not get around the taxes.
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Old 01-06-2013, 04:30 PM   #25
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How to build a garage without hurting property taxes?


You can not get around the taxes. Thet charged us for 70' of deck. It was cement around the side and front of barn. We pitched a big one they came back out and reduced the taxes. Raised it a few years later anyways.
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Old 01-06-2013, 08:13 PM   #26
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How to build a garage without hurting property taxes?


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You can not get around the taxes. Thet charged us for 70' of deck. It was cement around the side and front of barn. We pitched a big one they came back out and reduced the taxes. Raised it a few years later anyways.
I added a tiny landing off my front steps at my other house. The whole setup was maybe 3 feet by 4 feet, two steps. It showed up on our next tax bill!! (Obviously it didn't make a huge dent, but I was amazed to see that it had shown up).
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Old 01-17-2013, 03:00 PM   #27
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How to build a garage without hurting property taxes?


In texas you just have to attach it permanently to your house and it wont affect taxes at all. Seperate from your house, anything so much as a flower bed or dog house will raise your property tax.
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Old 01-17-2013, 04:22 PM   #28
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How to build a garage without hurting property taxes?


First, there really is no way around taxes. Sooner or later, any loophole you may have is going to close on you. In some horrific cases the loophole not only closes, but you are charged back-taxes and penalties as well - which can be devastatingly large if you were cheating the tax man for many years.

Have you looked to see how much the taxes will hit you? It might be a small enough of an amount that it really doesn't make it worth the effort to try to avoid. In my jurisdiciton, there is also the "homestead improvement exception," which allows you to improve (or rebuild) up to $75K in value without being hurt on taxes, before they kick in. Basically gives you time to pay for the improvement before you have to pay for having the improvement.

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HOMESTEAD IMPROVEMENT EXEMPTION:
The Homestead Improvement Exemption is an exemption allowed for new improvements to existing structures on homestead property or the rebuilding of residential structures following a catastrophic event. The exemption is limited to a maximum of $75,000 per year in fair cash value and continues for four years from the date the improvement or rebuilding is completed and occupied, not the date you file this application.....
Might want to just go talk to your assessor and tell them flat out - "I want to build a garage, what can I do to impact my taxes as little as possible?"

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