Completion of new construction increases your tax liability. Most assessing jurisdictions rely on a blend of the three approaches to value referred to as Income, Market and Cost.
In preparing a forecast of a new tax liability, it is imperative to understand the timing of capturing the new assessment, the likely methodology or approach used, and relative financial and market assumptions relied on by jurisdictions.
For California, Cost is not necessarily the approach relied on for setting a new taxable basis referred to as Proposition 13. If a property is constructed for the purpose of generating rental income, the new taxable value will be the reasonably anticipated income as defined by general market parameters and property specific projections.
DePasquale, Kelley & Company specializes in minimizing initial assessed values and provides its clients a comprehensive forecast of property taxes. In addition, we provide guidance on how to minimize taxable values, initiate dialogue with assessing jurisdictions and protest as needed unfair assessed values.
Outside California, the task of forecasting assessed values becomes more daunting with understanding the specific assessing guidelines, reappraisal cycles and local nuances involving approaches to value. We have local consultants expert in market trends and assessing guidelines to help our clients forecast accurately while concurrently keeping an eye on minimizing your taxes.
Regardless where you construct your property, DePasquale, Kelley & Company provides critical property tax advise that takes the guess work out of figuring your tax liability, understand requirements for submitting data to jurisdictions and minimize unfair increases.
Contact us for a property tax forecast and avoid the surprise of an increased tax bill.