Having a large lot to call your own is a dream for many people and prospective homeowners. While there is a lot you can do with a large lot that has multiple acres, a bigger property could also have an impact on other areas of your life as well. One way you could be affected by more acreage in your lot is through a change in your property taxes. The extra land and could affect your property taxes a number of different ways. Read below to get a better understanding of what more acreage means for your finances.
Higher Value
One way your property taxes could be affected is through a higher value determination of your overall property. In the vast majority of situations, having more land on your deed will result in a higher property valuation. When it comes time to value your home for tax assessments, this will undoubtedly lead to a higher tax bill.
Multiple Parcels
Your property taxes will be impacted if you have excess acreage on your property. If you actually own multiple tax parcels for each acreage of land you might end up paying more. Most owners of single family homes have one parcel of land they are taxed on. However, if you have a lot of extra land, there is a good chance it will be split into multiple parcels for tax purposes. This could make it more complicated when it comes to filing and paying your property taxes and more expensive when it comes to appealing a tax bill.
Use of Land
Another way your property taxes could be affected by excess land is by having some parcels designated as other uses of land. If you have a small property, it will likely be classified as a residential zone. However, if you have a lot of extra land, part of it could receive a commercial or farmland designation. In some cases, this could lead to a lower tax bill. However, in others it could lead to a higher level of tax. Before buying any property with multiple uses of land, it would be a good idea to try and have the zoning changed in the most favorable manner possible.
In conclusion, having a lot of extra land can come with a lot of benefits to a property owner. While there are clear benefits to having extra land, there are other ways that your life could be affected by having more land. One way that your life could be impacted by having extra land is through changes to your property taxes. Keep these in mind as you look at land and acreage in your area.
