Land/ Home Taxes Question

Tango · #1 09/17/06, 09:06 AM

Reading the dissertation length SHTF thread, I came across a tax scenario that set off a bell.

I bought this land cash and paid cash for my log house shell. In our county, we don't need building permits. There is nothing I can think of that would let the county know that I have a house on previously ag land (still in use as ag land for most part, just with a house now). Unless the health dept. reports to land office (needed a septic permit), or the 911 office (which gave me the address) my taxes may not come in right this year. Come to think of it I also didn't file the homestead exemption... ugh

ANyone familiar with TN land taxes? Should probably call them....

Windy in Kansas · #2 09/17/06, 10:32 AM

I obviously live in a different state so don't know Tennessee laws.

I do know that where I live one must report certain kinds of acquired property to the taxing authority at the courthouse, i.e. the property tax office or appraisers office depending up the property.

IF your house isn't completed it may not need to be turned in for taxes until it is finished. However two years later you can't still say, "It isn't completed, I still have one trim board to nail in place." if you get my drift. Probably when it reaches a certain percentage of completition it would become taxable--if you state and area is like some others. I don't know, just speculation to give you more to think about.

Tango · #3 09/17/06, 10:38 AM

My house isn't completed but it is lived in. There is no building code in my county so there will never be a certificate of occupancy. I'm going to have to call tomorrow. All I need now is a huge tax bill in two years because of some oversight on my part ....

BearCreekFarm · #4 09/17/06, 11:04 AM

Marcia- I once got two tax bills from my county- one for each of two rental properties I owned. They were between $5-6k EACH. The total was over $11k. In that county, the appraiser's office is required by law to inspect every property at least once every three years. In my case they had not done so. At the time I had owned one property for 5 years and the other for 4 years and this was the first time either of them had been inspected. Both were houses which I had purchased when they were new, so I was the first owner. When they finally got around to doing the inspections, it turned out that in both cases, the value of the home had not been added to the value of the lots. I was really tweaked, and went around and around with the appraiser, who was a real jerk, btw. The bills I recieved were for 3 years of back taxes, which is the most they can assess in arrears, otherwise it would likely have been twice as much. I had to pay it all in the end, and was thankful that I was able to do so, although it definitely put a crimp in my cash flow that year.

During my conversations with the appraiser, his attitude was that it was my fault for not noticing that the taxes were so low and reporting that fact to his offoce. DUH! How could I have known? These were the first and second homes I had purchased, and I thought it was the property appraiser's job to appraise the homes and generate the tax bill. Having never owned a home before I had no basis for comparison. I know that the homes had been permitted and inspected and certificates of occupancy issued, so I imagined that everything was in order.

anniew · #5 09/17/06, 11:18 AM

In PA, or my part of it, a copy of the building permit issued by the municipality is sent to the county to notify them that something new or an addition is being done, so that they can then assess the improvement.
Ann

Tango · #6 09/17/06, 12:00 PM

Definitely going to call tomorrow thanks for the info. and the story (BearCreekFarm). I can't believe I haven't even considered it until now, but the year has been more than crazy with everything that has come up. Perhaps the ehalth dept. sent it to the county. That is the only inspection or permit needed here. Well an electrical permit is needed but I'm off grid....

Cyngbaeld · #7 09/17/06, 12:57 PM

I spoke to the people in the assesor's office in my county. The lady said that they are taxing me on a piece of land with an uninhabitable mobile home which was here when I purchased the property. She knew I had a newer home moved on, but said it would not be taxed as such until after they came and inspected it and she didn't seem to be in any hurry.

Tango · #8 09/17/06, 01:29 PM

I can't remember now if I will recieve 05 taxes in October or the taxes for 06? I only lived in my house for one full month in 05 (Dec.) and it wasn't at all what anyone would call finished, lacking plumbing at the time. I think I only have to deal with 06???

CountryMamaof5 · #9 09/17/06, 04:46 PM

They reassess our value about every other year and change our taxes accordingly. I sure hate paying taxes. Specially when I dont agree with the majority of where the money goes.

Maura · #10 09/17/06, 06:58 PM

When your assessment notice comes in, if it's notably higher than last years, call the assessor and ask to see your property card. Be polite. You can have a copy sent to you, or go down and talk to the assessor. This way, you know what you are being assessed for. Most assessors are honest and want to be fair. Probably, your house will be valued 100%, then deducted a percentage to reflect it's unfinished state. If you are living in it, I would assume it is 80% or more finished.

goatlady · #11 09/17/06, 07:24 PM

In most states the county issues a septic permit not the health department, but in any case your county most probably is aware of your building. Also in most counties the taxes are paid "in arrears" i.e. you pay 05 taxes assessed - in 06. The counties most alwaysy send out the new property tax assessment amounts in Jan or February which will be due and payable the FOLLOWING year.

CountryMamaof5 · #12 09/17/06, 09:40 PM

If your house is already built and nothing has changed over the last year or two, then what could/would cause a jump in taxes? We were paying about 900 and then now 1200 two years later and we do not have any new millages. We just had the house put it at the end of that 900 foot road. Would one house cause our taxes to go up? I doubt the value of our home has gone up to make it fair.

agmantoo · #13 09/17/06, 10:08 PM

I had a nice short letter from the tax dept just last week. They stated that their field assessor identified a mobile home, on property that I own, that had not been reported. I had 4 options A..it was sold to others prior to 1 Jan 06 B..they would assign a value C..it was an oversight and I could supply the info, D.. the MH wasn't mine and I could provide the address for the owner. I opted for C and submitted the info and was promptly sent a bill for 06 only (the home had been there for several years) You might go the oversight route and tell them you forgot to list.

beowoulf90 · #14 09/18/06, 08:12 AM

Tango, I honestly didn't think Tenn. had property taxes(Real Estate). I know they have sales taxes and thought they had personal property taxes. That might change our plans on where we were looking for our next homestead.

GoatsRus · #15 09/18/06, 08:37 AM

Tango -
Are you originally from Florida? Florida has a homestead exemption that you have to file, but Tennessee doesn't give you and exemption.

Paula · #16 09/18/06, 09:23 AM

Tennessee does have an exemption. They call it the Greenbelt exemption. Anyone who has 15 acres or more and some type of livestock can file for it and get a much reduced tax rate.

GoatsRus · #17 09/18/06, 09:46 AM

Greenbelt is different from homestead exemption. All that's required for a homestead exemption is that you've lived in the house for a year. It's an automatic deduction once you've signed up. Greenbelt deduction is on a minimum of 15 acres and other stipulations apply.

Tango · #18 09/19/06, 10:30 AM

Thanks everyone. Well yesterday was a blur so today I will call the county and let ya'll know. Yeah in FL it was called Homestead Ex.

for an ag exemption one had to have 10 contiguous acres and proof of income (or investment) in livestock. Sounds easier to meet the requirements in TN. Thanks for the tip Paula

My house is not 80% finished, imo. When I get walls, doors, and ceiling, I would call it 80% finished. Until then its home sweet home anyway

Shadow · #19 09/19/06, 01:13 PM

Quote:

Originally Posted by beowoulf90

Tango, I honestly didn't think Tenn. had property taxes(Real Estate). I know they have sales taxes and thought they had personal property taxes. That might change our plans on where we were looking for our next homestead.

Tenn does not have personal income tax, YET. Our farm's north boundry line is the Tenn/Ala line. Property taxes on the Tenn farm ajoining ours is four times ours for twenty acres less and no buildings and their sale tax is 9.75%. Thats why we have no interest in the land ajoining us that has been up for sale for years. We can not justify the cost of the Tenn taxes but they have no incometax yet.

Tango · #20 09/19/06, 03:30 PM

I think I paid about $500 last year for this 50 acres. I paid $500 in Florida just one of three 2.5 acre parcels

so I'm not complaining at all. I called the tax assessor and he told me this land is already zoned agricultural and it won't change when the house is finished. In fact, he told me not to report the house until it was completed

soooo, I won't worry. Oh about the Greenbelt exemption, he said it would amount to about $30 difference per year, cost $12 to apply, had to prove that there was a profit of at least $1500 a year from ag use, and if the buyers, should I ever decide to sell, didn't want that exemption that I would have to pay three years back difference.... I have until February to apply if the decision is right for me.