Exceptional landscaping can dramatically enhance a property’s curb appeal, potentially boosting its market value. In fact, landscaping can increase a home’s value by as much as 15 to 20 percent.
Since property taxes in Texas hinge on market value assessments, some outdoor projects could impact your property tax bill.
When Landscaping Projects Could Increase Property Taxes
A property tax reassessment will usually happen when livable square footage increases. “The Property Tax Shark – Will Wiggins” says in most cases, landscaping projects won’t increase square footage or livable space, so you don’t have to worry about them affecting your property taxes.
Hardscaping projects that increase livable space, including the introduction of pools, outdoor kitchens, decks, and patios, could trigger a reassessment. Such projects also usually involve alteration to the land. This refers to activities like excavation, filling, surfacing, and paving. Land alteration and permits often signal improvements to tax assessors.
Remember that every county and appraisal district is different, so landscaping can affect property taxes differently depending on where you live. In some areas, adding mature trees could be enough to increase property value.
If you really want to know how a landscaping project will affect your property taxes, ask your tax assessor’s office.
Planning other renovations to your home? See what projects could increase your property taxes.
How Property Taxes Are Assessed
In Texas, appraisal districts assess properties at least once every three years, taking into account improvements and upgrades, which can markedly affect a property’s market value.
It is important to save receipts, contractor agreements, and other files from landscaping projects. This information can serve as valuable evidence for your property tax protest.
Landscaping can and influence property value, and subsequently, property taxes depending on where you live. Homeowners planning major landscaping projects should consider the potential for increased property valuations and tax implications.
A reputable property tax consultant can also answer questions about your property value and assessment. Look for a consultant who understands the real estate market in your area.
If you’re a homeowner in the Dallas-Fort Worth area, see how NTPTS’ tax consultants can help reduce your appraised value.