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we started to research the tax rolls we discovered that some of the
most lavish homes had the best rates on their taxes. The story of an
eye-popping experience and how we ended up saving lost of money that
others waste. Six pages, revised and updated with new reader tips, web links and comments.
- How to appeal your property tax assessment
- Special tax breaks
- Market value myth
- How to adjust your design for lower value
- Lower taxes for owner-builders
Excerpt from Report:
got your new home finished. You are settling down into a routine of
comfort and pleasure in your fabulous creation. You marvel at how one
can get away with generating this much equity in a property and never
have to pay taxes on the windfall.
Then the tax man cometh...
not the income tax man. Thanks to the Taxpayers Relief Act of 1997,
he's held at bay on your gain. It's the Property Tax man! You haven't
thought much about property tax because it's the hidden tax. It is
cleverly wrapped into an escrow by your mortgage company which is
wrapped into a monthly payment which you know you can afford, and
therefore don't think about.
But it's there.
first year you build your new house, you may be "exempt" from property
tax, that is, in some jurisdictions they may let you pay the tax on the
land alone, as there was not a finished house on it when the new tax
year officially rolled around.
Not in my jurisdiction.
tax man came right away. The assessor got notification of our building
a house from the city inspector's department. The city inspector enters
your home into the system at the amount you estimate it will cost to
build. We entered $150,000 at the time we took out our permit. The
assessors office got this information, and added something for the land
which was already on their rolls, and hit us with the full amount the
first year we lived in our new place.
We had never seen a tax bill that big."...
Sample Reader Tip Excerpts:
building three thousand square feet with a full basement, and another
thousand on the third floor. It will be configured with garage doors
down below, and framed in such a way that basement can be used as
garage and thus unheated and taxed for much less. I'll make a ten-foot
bay with a garage door, which can later be removed, windows installed,
and made into a walk-out. Square footage but without the taxes."
built our house and left basement unfinished until after the assessor
filed his report, then we started finishing it ourselves. No sense
having twice the square footage to pay taxes on."
Pleasant Grove, UT