Property tax is the tax that is levied on personal property, land, residences, outbuildings, and businesses. The tax rate not only varies from state to state, but from county to county, funding such expenses as police and fire departments, ambulance services, hospitals, libraries, and schools.
Remodeling your house to rent in Hanoi, to the extent that has increased in size, or obvious value, will increase property taxes. Taxes will increase if the property has been changed drastically by construction of an addition, connected to the home itself, or of out buildings, such as a garage, shed, covered patio, or even a deck. It is assumed that the increase in square footage will raise the fair market value, and this will, of course, affect the appraised value, and the overall taxes.
Other outside indicators that tax appraisers look for are, the addition of a swimming pool, new driveways and sidewalks, professionally done landscaping, new roofs, and siding. Even less noticeable improvements, such as drainage tiling and underground sprinkler systems are considered improvements to the property.
For the most part, remodeling that takes place inside the residence isn’t taken into consideration. Painting, new flooring, and upgrades in kitchens and bathrooms, will not increase property taxes. However, remodeling and finishing an unfinished basement may, since this is considered additional living space.
The rate and millage in any particular county varies, as does the reevaluation timetable. When the property is appraised, the appraised value is multiplied by the rate, giving a much lower value than fair market value for tax purposes. This amount is then multiplied by the mill levy for the area, which determines the tax total. The reevaluations, which are conducted by the country, take place periodically to note improvements, or in some cases, depreciation, to the property, and to reassess market value of homes in a particular area. This usually happens approximately every six years. It is expected, however, that the homeowner will report any improvements to the property as they are completed between evaluations. The addition of buildings or additions to the existing structure normally requires a permit, which will have been recorded in the county records, and will increase the likelihood that a reevaluation will take place soon after construction in finished.
A property tax increase may very well occur even without remodeling. In areas where other homes in the vicinity has increased in market value, all residences will be reevaluated at the increased value, and all property taxes will increase.
Over all, remodeling that increases the size of the residence or improves the exterior appearance will increase property taxes. Renovation inside the home normally does not cover all.