Hi, first time poster but skimmed through some of the biggerpockets books, watched the youtube and hopeful for some good learning and sharing here.
Anyway I have a building that has 4 apartments and a commercial area downstairs and is rehabbed nicely and almost ready to rent. The taxes are currently about $6,000 a year total. I looked at a close by property which is already rented and taxes are $37,000 per year. They have much more units so I'm not expecting my taxes to go that high but is there a rule for this on how much it would increase? Is this in a town by town basis that I should ask my town hall where my building is?
Thanks for any info you guys and gals can provide on this.
It depends on where you are located. Here in California property taxes are assessed and billed at the county level. At least that is where my bill comes from.
@Mirzet Mehovic, what state is this? A lot of these questions will vary somewhat by state. If you tell us your state then someone might be able to give you good guidance.
In PA, they CAN reassess if you do over $2500 of improvements in a year. However in my area, they don't bother with that because it would be too much work for that small a rehab. If you add an addition, garage, etc then they will reassess. This could vary somewhat even within my state because the law does allow them to reassess more often.
It depends on where you are located. Here in California property taxes are assessed and billed at the county level. At least that is where my bill comes from.
@Mirzet Mehovic, what state is this? A lot of these questions will vary somewhat by state. If you tell us your state then someone might be able to give you good guidance.
In PA, they CAN reassess if you do over $2500 of improvements in a year. However in my area, they don't bother with that because it would be too much work for that small a rehab. If you add an addition, garage, etc then they will reassess. This could vary somewhat even within my state because the law does allow them to reassess more often.