Can Assemblage Have An Effect On Real Estate Taxes?
The demand for real estate in a given location may affect the prices that are properties are sold for. There can be many reasons that a certain region of a town is more desirable than other areas. Most commonly developing a shopping center, apartment complex, or a community civic center is the rationale for the buyer over paying for other pieces of real estate.
Assemblage is the real estate practice where the buyer will purchase two adjacent lots or an entire neighborhood for development or conservation purposes and combine them. This can dramatically affect the fair market value of the newly combined property. The property owner looking to buy real estate in bulk transactions may not be looking to combine any of these properties and that is where possible confusion for assessment might be encountered.
There are a few issues that might arise when overpaying for real estate by a property owner or if there is a potential for assemblage to occur. Assessors might look at the sales price for recent transactions and unfairly increase the real estate taxes instead of what the fair market value for a particular neighborhood actually might be. Also if the assessor decides that the owner will most likely assemble the recent transacted properties to create larger property; there is the potential to raise the real estate taxes based on an increased assessed value. This could result in a tax bill that would unreasonably high, if there are no plans recorded for such a development to occur. Filing a tax abatement would be the best way to combat unlawful practices regarding real estate taxes.
Allobar Strategies, a property tax consulting firm has ability to assist tax payers with any questions or concerns they may have, with regards to filing a tax abatement and understanding the implications of real estate development as it pertains to real estate taxes.
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