It’s important to think about all factors when it comes to installing a pergola in your yard.
Most people are only going to think about the beauty of a pergola and how it is going to be anchored. Yes, it is essential to think about these details but you will also want to look at the fiscal side of things with this type of feature.
Does a pergola increase property taxes?
Yes, a pergola can increase property taxes in some regions. It’s best to consider local financial regulations and speak to a certified accountant. In general, this is seen as a legal improvement and will come with a property tax increase in most areas.
You will have to look at the variables in play with your pergola and your land. This is only determined with the help of a professional but it’s best to look into this beforehand.
This article is going to help you understand more about how a pergola can increase property taxes and what factors to consider.
Factors To Decide If Pergola Increases Property Taxes
1. Depends On Local Regulations
With something like this or any other addition to a property, you will have to take the time to understand what the local regulations have to say.
What is applicable in one region is not going to be found in another.
This goes for any country.
You will want to take the time to look at the local regulations for this specific type of feature. If you are unsure, you will want to take the time to speak to your accountant on this matter. They will have certified knowledge of whether or not the pergola is going to be taxed.
Local regulations matter because each region is going to take a look at the pergola from a different perspective.
Some regions don’t believe this is a feature that has to be taxed, while others see it as a tangible improvement that will have to be taxed.
2. General Improvements Do Increase Property Taxes
You will have to take the time to think about general improvements when increasing property taxes.
If you are not taking the time to look at the general rules of property taxes, you might be surprised with a higher bill later.
For the most part, you will want to assume there is going to be an increase. This is of course assuming you have declared the pergola and it is known by the state.
It’s recommended to go through these details with your accountant.
They will indicate how much the amount is going to be and what the increase is going to entail. This is key information to have before you set up a pergola in your yard.
3. Placement Of The Pergola
Have you taken the time to think about where the pergola is going to be set up?
Sometimes, the pergola is going to be taxed when it is attached to the house. This is far different from having a freestanding pergola in the yard.
When you attach the pergola to the house, this is going to have a different element for the design of the property. It is immediately going to be seen as an extension of the property and that can be taxed differently.
On the other hand, when it is a freestanding pergola, this might be different in the local regulations. You might get away with it not being taxed.
This can often dictate the type of pergola you end up going with.
4. Legal Standing Of The Pergola
This is one of those details that is going to come down to the local regulations again.
Have you taken the time to declare the pergola with the government? This is going to be a key detail to think about because there has to be legal standing for the pergola to be taxed.
It has to be something they are aware of.
If it is not declared, you are not going to be taxed but it can make it harder to sell the property later. Be aware of these consequences and make sure you are thinking about every angle as a property owner.
Does a pergola increase property taxes?
A pergola can increase property taxes. It’s recommended to speak to an accountant to find out what the local regulations are. This includes comparing a freestanding pergola to one that is attached to the house. This can often dictate what is taxed.
All of this research should be done beforehand.
You do not want to install a pergola and then realize it is going to increase your tax bill tremendously. This is a risk you should not be taking with a pergola moving forward.
Make sure the pergola is secure and it is in the right spot when you set it up. This will ensure it lasts a long time even if the property tax bill goes up.