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Updated about 3 years ago,
DUPLEX Property Tax Question
Hey guys, rookie here. I've been studying property taxes so I can better analyze deals. I've only been researching in my county where I plan to make my first purchase so I don't know if it differs from other areas. So forgive me if I did not need to include this information. My county uses a 4% (residential) and 6% (non-residential/rental) ratio to determine a property's assessed value for taxation. I've talked to a Tax Assessor on the phone but she didn't seem too confident in her response.
My question is: When house hacking a duplex, does your whole property (both sides) get assessed at the 4% residential ratio for property taxes? Or does the value of the property get split so you have the residential ratio on your half and the 6% non-residential ratio on the side you're renting out?
I'm asking cause my county gives you a significant school tax credit if you are living in your property. I'm trying to figure this out as it can have an impact on my cash flow when analyzing.