People understand large expenses frequently have tax consequences, either for better or for worse. As we draw near the end of the year, tax planning is on our minds. We need answers to help decide what we will do this year, and how we will plan for the next year.
WILL MY NEW AC RAISE MY TAXES?
You will benefit every month by having a new air conditioner. A new system will raise your comfort and lower your utility bills. It will also increase the value of your home. You can demonstrate lower home operating costs to a prospective buyer. The home you show will be free of musty odors and temperatures will be even throughout. The new air conditioner is a great plus when the buyer does an inspection. But, here’s the elephant in the room: “will a new AC raise my property taxes?”.
Property taxes are, after all a reflection of the value of your property. If your property is more valuable, it stands to reason you will pay more taxes based on higher property value.
Will a Permit Affect My Assessed Value?
Arguably, we have many reasons to be concerned when the government looks into any aspect of our lives. It has been said the 10 scariest words we can hear are, “I’m from the government, and I’m here to help you.” Does the same apply to having a permit when you put in a new air conditioner? Is this a signal to the government that it is time to raise your taxes? Well, the answer might surprise you.
In Palm Beach County, the tax appraiser’s office does not even ‘see’ permits for air conditioner replacement. This is regardless of value. You can replace your air conditioner with a new high-efficiency unit, upgrade the ductwork, and add a few accessories for comfort. It will not affect your tax bill in the least.
There is An Exception…
There is one exception according to the County representative with whom I spoke That is if the replacement is part of a renovation/addition that changes the ‘footprint’ or square footage of the home. That is if the AC replacement is part of a remodels to enclose a screened porch your property value may increase. Not because of the AC, but because you added living space to your home.
Another exception may be if the air conditioning work is part of a renovation valued at greater than 30% of your home’s value. There are many other requirements that come into effect on such a large project. You may be required to upgrade electrical, windows, insulation, and other aspects of the home. But that is another topic for another day.
It’s Time to Take Action
You should at least begin planning for replacement when your AC is 10 years old. The best policy is to be prepared. What is more, changes in technology can immediately lower your bills and raise your comfort level. We have trained Comfort Specialists equipped, trained, and ready to help you make the decision best for you.
The municipality will issue a permit for the work before work commences. An inspector will come to your home to ensure the installation is in compliance with health and safety standards. Yes, the government is really coming to help you. This is a good thing, and it will not raise your taxes.
We are dedicated to your satisfaction. Call Complete Comfort today at (561) 529-6262 for your comfort conditioning needs. When you do, ask about membership in our Comfort Club. A Comfort Club membership is your best assurance of year-round comfort and system performance.