If you’re thinking about adding a fence to your property, you might wonder if it will increase your property taxes. The answer to this question depends on a few different factors, but in general, fences do not significantly impact property taxes. There will, however, be a slight increase if the PVA reaccesses your property. This article will answer the question, ‘does adding a fence increase property taxes’ in more detail.
Does adding a fence increase property taxes?
Adding a fence is likely to increase your property tax, as this tax is determined by the value of your home. If your property has a well-maintained yard with an obvious boundary, then it will be worth more than a home with an unkempt yard, and you’ll have to pay more property tax.
There are a few things to keep in mind regarding fences and property taxes. First, the type of fence you install will make a difference. A simple wooden fence will not have the same impact as an expensive vinyl or metal fence or a brick or stone wall.
The size of the fence will also be a factor. If you’re building a small, standard fence that’s similar to other fences in your neighborhood, it’s not likely to have as much impact on taxes. However, if you want to build a large fence or grow a privacy hedge against your fence, this may increase your property tax.
The location of the fence is also important. If the fence is going to be visible from the street, it will have a bigger impact on your property taxes than if it’s not.
How is property tax calculated?
Property taxes are calculated based on the value of your home as well as on the rates of tax, depending on where you live. Tax rates are set annually by the local government. The PVA (Public Value Administration) is responsible for determining the value of your property, and they will take into account any improvements you’ve made, including adding a fence.
The PVA will re-evaluate your property yearly, but you can also request a re-evaluation if you’ve made significant improvements, like adding a fence, decking, or patio. If the PVA does reassess your property and finds that your fence has increased the value, your property taxes will go up.
The amount your taxes increase will depend on how much the value of your home goes up. In some cases, your property tax may increase even if you haven’t built a fence or made significant improvements. This may be due to increases in property value in your area.
The PVA will either visit your home to access the value of your property and work out how much tax you need to pay, or they will calculate the amount remotely using online software. They may also check the average price that houses are selling in your area to help determine the property tax.
In general, fences have a minimal impact on property taxes. If you’re adding a fence for aesthetic reasons or to increase the value of your home, you can expect your property taxes to go up slightly. However, if you’re adding a fence for privacy or security reasons, you likely won’t see a significant increase in your property taxes.
Conclusion
Fences usually don’t have a significant impact on property taxes. However, the type of fence, size of the fence, location of the fence, and value of your property all play a role in how much your property taxes will increase. If you’re thinking about adding a fence to your property, talk to your accountant or tax advisor to get an idea of how much it will impact your taxes.