It seems that every action you take on your property has some type of tax implication. That might not be great news, but it’s reality – whenever you plan a new project, you need to at least think about what that job would mean for your taxes and other financial elements.
When it comes to a new carport, the story is the same. You don’t want to get caught off-guard not knowing what a carport might do to your tax situation, so get the information you need upfront before you get too far into a project. Once the taxes are worked out, and you know what to expect, you can then get things started and look forward to a new carport with confidence.
Speaking of getting started, the best place to do that is right here at American Carports, Inc. You are welcome to use our Build & Price tool to customize a structure that will suit your situation perfectly, and you can also contact us to get help from our friendly team. We’d love to get started today!
Does a Carport Impact Property Tax?
Property taxes are calculated based on the value of the property in question. While that’s certainly an oversimplification, the basic concept is true – the more a property is worth, the more taxes will be due for the owner of that property.
So, when thinking about property taxes and carports, the fundamental question is how much value is being added to the property when you construct a carport. While a carport is undoubtedly a great addition to your property and makes it more valuable, does it boost the value in a way that will make your property taxes soar through the roof? In the end, the answer to that question is probably not.
Think about the assessed value of your property as it sits currently. In many places, the value will be in the hundreds of thousands of dollars – and it could even be up into the millions. Now, think about how much it will cost to build a new carport on that same property. Maybe a few thousand dollars, or less? Given the comparative value of the property, the carport doesn’t change things in a meaningful, notable way.
2 Types of Classifications for Tax Purposes
There are two ways in which a carport can be classified for tax purposes on your property – permanent and temporary. While the rules for this will vary from place to place, often the designation is going to come down to how the carport is installed. Is it attached to a solid foundation, like a concrete slab? In that case, it will likely be called a permanent structure. On the other hand, if the foundation is more informal and the carport isn’t firmly attached, it might be designated as temporary.
Generally speaking, a permanent structure is going to have more impact on your taxes than a temporary building. However, you’ll want to pay close attention to the rules in your area to determine if this matters at all, and if it does, what the actual difference to your taxes would be.
Weigh the Many Benefits
Even if the addition of a carport is going to elevate your property taxes – and any rise in your taxes will probably be minimal – there are so many benefits to having this kind of structure that it will almost certainly be worth the additional expense. Carports are a popular addition to properties across the country because they have so much to offer and are affordable in comparison to what they deliver.
Not only can you enjoy the benefits of parking under a carport and protecting your vehicle, but you can also use this covered area for storage space, for working on projects, or even for setting up a table and chairs to entertain people outdoors. Over the years, you’ll probably find that your uses for a carport are going to gradually change and evolve, but as long as you build a durable structure that is going to hold up to the elements over time, you can keep getting great value from this project for a long time to come.
Build Your Custom Carport Today
In the end, the property tax implications of adding a carport to your land won’t be significant enough to give you any meaningful reason to change your plans. And, when you work with American Carports, Inc., you can look forward to getting a great deal on a durable, lasting structure that is going to serve you well for a long time to come.