You may have heard the term "property tax abatement" and wonder what it's all about. Basically, to abate something means to reduce (or eliminate) it. So property tax abatement is a short-term or long-term arrangement in which your property taxes are lowered despite your making improvements to the home. Under normal circumstances, when you increase the value of your home, you also raise the taxable value. With abatement, this increase does not occur (or at least not as much). Usually, a waiver is issued as an incentive to encourage town revitalization.
If approved, you will have taxes waived on most of your upgrades. These include roof repair, exterior siding, lawn and garden upgrades, driveway repair, room remodeling, resurfacing, plumbing, and electrical repairs. The only thing it doesn't cover is the addition of actual rooms, showers, porches, and fireplaces. This reduction will stay in effect for as long as your locality provides. Generally, the tax is raised back from its lower rate to the new rate over a period (for example, 5 years). Your locality can provide you with the details.
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Keep in mind that even if you are approved, there is no guarantee your taxes won't go up. It just means they won't go as high as they otherwise would. You may still see a raise, especially if you make enhancements to your home not covered in the list of improvements eligible for tax abatement. Still, property tax abatement is a nice way to save some money when upgrading your home or residential building.
Property Tax Abatement 101
Matt D Murren owns and operates http://www.property-tax-assessment-advice.com