Austin, TX · Member since 2017 · 8 posts · 0 votes
Hi, I asked earlier about building a condo ADU and got some great help with that. Now I am looking into what the implications are as far as property taxes. (
Our original house has ~$5k annual property taxes. The land value is $200k and the house value is $150k. If I build and sell a condo on the other side of the lot, I would assume that the taxed value would remain the same (aside from the regular annual increases) for the original home and that the new owner would pay taxes only on the value of the second home ($300k) and no property taxes.
Investor · Austin, TX · Member since 2013 · 452 posts · 309 votes
8y
Land and structures are taxed separately. When you create the condo regime, it will be filed with the county and they will divide the taxes to 2 tax bills accordingly.
In theory, you are only adding the value of the new structure for tax purposes. An exception of this is if you have exemptions on the property (i.e. a homestead exemption). If they see this is a significant remodel they can come in, reassess, and remove the exemption to reset the baseline. I'm not sure if they would do this on the front house if you don't do anything to it.