Re:Low interest rates in advanced countries have pushed mone...
by sokoloff on Wednesday November 24, 2021 @01:15PM
(#29333177)
Lowering the tax rate on improvements would probably have the side effect of having more remodeling work be inspected. Much of the avoidance of building permits (and associated inspections) is about avoiding increased assessments and associated taxes. This in turn would likely lead to less totally slipshod remodeling work, at least by people who weren’t aiming for that outcome.
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Re:Low interest rates in advanced countries have pushed mone...
by larsiusprime on Wednesday November 24, 2021 @01:25PM
(#29333306)
Wait why would LOWERING the tax rate on improvements INCREASE the amount of building inspections? Are you assuming that this would lead to an increased reliance on the cost approach for assessments?
Re:Low interest rates in advanced countries have pushed mone...
by sokoloff on Wednesday November 24, 2021 @01:32PM
(#29333409)
With a high tax on improvements (as is the case today), there is incentive to make improvements in a way that the municipality won’t know about (as is the case today). The easiest way for the municipality to learn about improvements is via the building department permitting and inspections process, so a lot of work is done without pulling permits.
Lowering or removing this disincentive would increase the amount of work that gets inspected.
As an owner-occupant, I want the inspections and am willing to pay one-time for an impartial second set of eyes.
As an owner-occupant, I do not want to pay a recurring subscription fee (in the form of higher property tax) as a result of the inspection.
Given how many properties have obviously recent remodels and no permits pulled in the last 30 years, it’s fair to say that at least some of the market has decided that permits aren’t worth the tax increases.