Property Q&A in 07030>Question Details

Bluesky, Home Buyer in Hoboken, NJ

will home renovation increase property tax ?

Asked by Bluesky, Hoboken, NJ Thu Dec 13, 2012

If yes, how much the increase is going to be? Say the total working value is $10K including labor and materials, how much is the tax increase? Is there a formula? Thanks.

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There are a lot of things that can increase your property taxes. I'm not sure myself if renovations are one of them. Have you talked to a realtor about this kind of thing? You should find someone in your area and ask them questions. http://www.applecreekbuilding.com/additions-add-on-space/
0 votes Thank Flag Link Wed Mar 18, 2015
I actually had the same question. My husband and I want to renovate our kitchen, but we weren't sure if it would increase our property tax. Did you ever find an answer to your question? http://www.avado.com.au
0 votes Thank Flag Link Thu Sep 11, 2014
I think it depends on your area. The income tax should vary depending on where you live. I would call the city and see what they say. Good luck and I hope you figure everything out that you need! http://www.vickershomeimprovements.net.au
Flag Thu Nov 20, 2014
Re the answer directly below - policies will vary from state to state and city to city. Don't look for accurate information from websites not in your area.
0 votes Thank Flag Link Mon Oct 7, 2013
The taxes may increase slightly by way of an added assessment when the work is completed. If the "actual cost" is $10,000, the added assessment in Hoboken should be 31% or $3,100 added to your assessment, the resulting tax bill would be around $150 per year pro-rated from the date of completion to Decamber 1st. If your construction permit reads, new kitchen and bathroom, cost $10,000, it could be questioned by the assessor who is well aware that the cost of a new kitchen and bathroom typically exceeds $10,000. Should that be the case, he will use his own judgement and issue an added assessment which he considers to be reasonable. If you do not feel that your added assessment is justified, you must file an appeal with the County Tax Board before December 1st.
0 votes Thank Flag Link Fri Feb 1, 2013
It does depend on the type of renovation and on the town.
Some towns will increase your tax for adding A/C to your home some will not.
some towns will increase your tax for renovating your Kitchen and Bath some will not.
Adding a Deck will most likely increase your tax in most towns. other renovations typically will not increase your tax. and actually they do not increase your tax but increase your accessed value which results in higher calculated tax. you can ask your town when you pull the permits if if this is an item that will increase you accessed value.
0 votes Thank Flag Link Fri Dec 14, 2012
As I understand it taxes only increase if the property is reassessed. An assessment is not triggered by a renovation to the property. However, if an assessment is made in the over all community, any features that make your home stand out substantially from other similar homes can affect the amount your specific property is assessed for.
0 votes Thank Flag Link Thu Dec 13, 2012
Bluesky,

If you make improvements to the property that are not consider routine maintenance your taxes can increase. Your taxes are based on the assessed value of the home so it's hard to say how much your taxes are going to go up for any given work you do. If your property is under-assessed and you do work they can reassess your home and you may see a much larger increase then just the increased value of the work. Your best bet is to speak to the tax assessor before you do the work. They can give you an idea of what could spark a reassesment and what won't. In general if you need to pull permits you are opening yourself up to a reassesment.

My parents actually inquired about redoing their driveway several years back and were told they would need a permit for concrete or asphalt, but not for paving stones because they weren't considered permanent. In their town they also didn't require a permit for flooring so they replaced carpeting with hardwood floors. Both these improvements increased the value of the home but since permits weren't required their taxes weren't affected since the town never came out to look at the work and really don't even know the work was done. The same can hold true for kitchens, you may be able to reface cabinets without a permit but replacing them will likely require a permit making the town aware of the improvements. Obviously this is going to vary from town to town so, again, I would suggest talking to the tax assessor and the construction permiting office. The tax assessor may also be able to offer you a tax abatement for a few years on any tax increase brought on by the improvements.

If your home is in Hoboken and you haven't appealed your taxes in the past few years you may actually be overpaying for taxes so it may be worth looking into a tax appeal to offset any possible increases from improvements.

I hope this helps. Please do not hesitate to contact me if you would like to speak about the specific work you are considering in more detail.

Andres Garcia - Sales Associate, CDPE - RE/MAX Gold Coast Realty - 56 Newark Street, Hoboken, NJ 07030 - Direct: 201 795-5200 x340 - MileSquareRealty.com - facebook.com/MileSquareRealty
0 votes Thank Flag Link Thu Dec 13, 2012
Hi Bluesky,

I am afraid the most accurate answer to that is "It depends".

If you are adding rooms or making additions to your house it is likely that over time it will. If you are remodeling your bathroom, probably not.

I say this a a layman when it comes to municipal taxes though, and the best thing you can do is call the Tax Assessor's office and inquire what changes may constitute a tax change.

Sincerely,

Amos Elroy
CDPE (Certified Distressed Property Expert),
SFR (Short-Sale Specialist Certified)
NAEA Member (National Association of Expert Advisers)

Residential Real Estate Investment Consultant
Lic. Realtor Associate
EXIT On The Hudson Realty
(888) 462-6573 / (888) HOB-NJRE
FAX (888) 462-6573
Office 201-437-0411
http://www.HobNJRE.com

Twitter & Facebook: HobNJRE
0 votes Thank Flag Link Thu Dec 13, 2012
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