Will your property taxes go up if you build a porch in your backyard?

Making your garden look like a conservatory by installing a veranda can be a particularly exciting project. However, we must not neglect the financial impact of such a construction and especially the increase in property tax. Here’s everything you need to know to stay out of trouble with the tax authorities.

First, this extension is mandatory to report to the tax authorities, according to the tax website. “This statement allows the Property Tax Center to adjust the basis used to calculate property tax,” it explains. This process must be completed within 90 days of construction completion.

Exemption for the first two years

In particular, the owner must fill out declaration 6704 IL or Cerfa nº10517 and then submit it to the cadastral office of the competent real estate tax office. The information contained in this statement allows the tax center to adjust the tax base, which is then used to calculate the property tax. The calculation will take into account the area of ​​the veranda. If it is a new building or reconstruction, additional steps are necessary, explains the Renoval-Veranda site.

After making this declaration, the cadastral rental value of the property will increase on January 1 of the following year, which will lead to an increase in property tax. “To get an estimate of your new property tax, you can contact the property tax department where your property is located,” the tax website says. The good news, however, is that the statement also allows access to the two-year exemption under Section 1383 of the Internal Revenue Code.

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