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+--- Thread: Tax reappraisals on additions (/showthread.php?tid=3277)
Tax reappraisals on additions - Guest - 11-04-2007
hey, I heard yesterday, from a friend not the officials, that the tax office over here has been sending appraisers out, unannounced, when a permit is pulled.
Before it is finaled or the work even begun.
Did she get misinformation or is that true?
a) I dislike having officials or anyone show up at my doorstep and demand to see my premises ... it feels like an invasion of privacy
b) they can't tax you on the improvements until after they're finaled, can they? That would be so wrong.
Would appreciate hearing from anyone about their experiences.
My son who paints on the west side said they came to his job site this week -- but that is new construction and in the finish stages. And west side and east side can differ in approach, no?
RE: Tax reappraisals on additions - Hotzcatz - 11-04-2007
I don't think the tax folks actually "demand to see the premises", they kinda look at the outside and that's about it. They are also totally independent of the Building Department. And yes, they can tax you before the improvements are finished. After all, vacant land gets taxed, doesn't it?. I think they tax it as a house once you start living in it, but you'd have to ask your tax person for specific details. You can also be paying taxes on something for years and never have a building permit for it.
RE: Tax reappraisals on additions - Kapohocat - 11-05-2007
quote:
Thanks, Hotzcatz!
yes, they are independent of Building, and by their own words, a whole lot more on top of things.
I'm not sure I follow the logic about the vacant land in this case. I'm asking about an addition on to an existing home.
Vacant land gets taxed at a higher rate than improved residential (depending on zoning).
When you build a house and apply an exemption, taxes go way down.
However, when you add value to an existing house, you get taxed for the extra square footage. The tax rates are based on values for your area, and the rates are multiplied by square footage -- with different rates for interior space, covered lanai, and uncovered, and accessory buildings.
Why should they be able to raise your taxes for, say, 400 sq feet of garage that doesn't yet exist but is only a pulled permit? That confuses me. After all, you are not technically allowed to use the square footage of an addition until it is finaled.
note: I always get taken aback when someone says to me:
"you'd have to ask your tax person." I've always done my own taxes; am I alone there? But now I do use TurboTax. Normally if I have questions on Hawai`i real property tax law, I call the Assessor and ask, but it's the weekend.
Thanks for the feedback on what the "inspection" is like.
That's an area where I might not get complete truth and accuracy by calling the office.
In my experience, and it seemed because building was moving so fast - the tax office was not increasing UNTIL the bldg was finalled - i.e. the paperwork hit their office on the SF... these days of course it has slowed down and like unpermitted or "under permitted" structures that have residential exemptions on them, I think the tax dept seems to be getting caught up.
But call the Assessor now that it's Monday morning - they will open momentarily at 7:45 AM.....
Catherine Dumond
Blue Water Project Management
808 217-7578
http://bluewaterpm.125mb.com/index.html
"We help make building your dream home a reality"
RE: Tax reappraisals on additions - Carey - 11-05-2007
This is merely speculation, but I have seen many places here that never get finaled, Perhaps this was a way to dodge taxes here in the past???
The tax man may have also noted that many properties here, with permits pulled but not finaled, sell for more than properties without permits, hence there may be greater value in having permits, and more taxable value than a totally unimproved plot ....but this is just a guess...