Reasons Why Your Property Taxes May Have Increased

If you own a home or commercial property, you will notice that your property tax amount changes from year to year. No matter where you are located, there exists always a possibility that your property tax will increase. Here are some reasons why your property taxes may vary annually.RealEstateForSale

Increase in Neighborhood Value

If the neighborhood has seen marked improvements, this can send your property taxes skyrocketing. If large, nice homes are being built or if renovations are taking place in many homes, there will be an increase in taxes. If there are more amenities, such as nice stores, better roads, and nice, green parks being added to the neighborhood, this will trigger higher home values and higher property taxes.

Government and School Funding

If the local government and local schools are in need of more money, property taxes for everyone in the local area will go up. Property taxes are used to fund public schools for students and they are also used for local budgets. If there have been budget issues, it is likely that you will owe more money in taxes. If a new school is being built in your area, this will also inflate tax needs and your tax assessment.

A New Golf Course

One thing that will definitely increase your taxes is being located near a golf course. Golf course communities are often considered luxury by definition, and this consideration translates into skyrocketing taxes. If a golf course is built near your home or community, you can expect that you will find yourself having the same type of property taxes as a planned golf course community.

Image credit: Flora Alix

About the author

Seattle CPA+John Huddleston has written extensively on tax related subjects of interest to small business owners. He is a graduate of Washington State University and the University of Washington School of Law.

Leave a Reply