A pool can make your backyard more inviting and give family members a place to relax, socialize and get some exercise. A pool can also be expensive, even after the installation process is complete, since it can increase the amount you’ll have to pay in property taxes.
A Pool Can Increase Your Home’s Value
Property taxes are based on a home’s assessed value, which is based on its size, condition, amenities and location. If you add an in-ground pool to your property, it will increase your home’s value because it’s a permanent structure. The same is not true of an above-ground pool.
The tax assessor may estimate your home’s value based on how much it would be likely to sell for in the current market, how much it would cost to rebuild it if it were destroyed or how much you could earn by renting it out. Sometimes tax assessors use a combination of two or more of these methods.
If you install a pool in your yard and most other homes don’t have one, the pool may raise your home’s value more than it would raise the value of a house in a neighborhood where most other homes have pools. If you live in a place where pools are in high demand, installing one will raise your property’s value, and your tax bill, more than installing a pool in a place where it will be less appealing to potential buyers or renters.
The size of the pool can also influence the amount of the change in your tax bill. A larger pool will increase your home’s value and property taxes more than a smaller one.
Your Local Tax Rate Will Determine How Much You’ll Pay
Property taxes are assessed on a local basis, and the methods used to calculate tax bills vary from one jurisdiction to another. That means that installing a pool in one town may cause the property owner’s taxes to increase by a modest amount, while adding a pool to a property in a different locale may cause the owner’s tax bill to skyrocket.
Contact Your Tax Assessor’s Office to Find Out How a Pool Could Affect Your Bill
Several factors go into determining property tax bills, and policies vary widely from one municipality to another. You can contact your local tax assessor’s office to inquire about how property values are estimated and how a pool could impact your tax liability.
Specific factors such as the size of a pool and the values of similar properties would be relevant, and that information may not be readily available. You won’t get an exact figure for how much your tax bill would increase, but an employee at the tax assessor’s office should be able to provide general information that can help you decide if a pool would be worth it.
Post a comment