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Charged taxes retroactively - can/will the town do this?
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bpmom
Feeling Blessed
Member since 6/07 2963 total posts
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Charged taxes retroactively - can/will the town do this?
We had major work done on our home in 2011. Town approved it, gave us new CO but we had no tax increase because it didn't change footprint of the house/sq ft.
Then we did minor work (deck, porch, pergola) but we don't have a CO for it. We're inclined to wait until we move because we plan on staying here for 20+ years and we figure we'll save the money on any possible tax increase.
Our financial advisor asked us about it this week -- she mentioned we could get hit with retroactive tax fine/penalty later whenever we sell the house -- She said the town could prove that we did the work when we submitted the plans in '11 and charge us 20 years' worth of tax increases. I've never heard of this -- does this happen?
we are in Brookhaven.
TIA.
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Posted 2/19/13 11:03 AM  |
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Paramount
Sweet!
Member since 7/12 4289 total posts
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Charged taxes retroactively - can/will the town do this?
I don't know, BUT.
I'ts JUST not worth "waiting". If you wait you will take the chance of being caught. So its up to you for the amount of risk you want to take.
Ask the woman on the home board who is the realtor at 21st cebtury. She always has excellent advice.
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| Posted 2/19/13 11:06 AM |
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Kitten1929
LIF Adult
Member since 1/13 6040 total posts
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Charged taxes retroactively - can/will the town do this?
Also, those could be very costly issues just in terms of the COs down the road when you sell. It's not worth it IMO to skirt the proper process if it will cause a headache down the road.
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| Posted 2/19/13 11:19 AM |
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summertime
LIF Adolescent
Member since 9/10 852 total posts
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Re: Charged taxes retroactively - can/will the town do this?
No I dont believe they can do that. When we bought our house, they had an open permit for an addition that never had a CO, going back like 10 years. They got a CO and didnt have to pay back taxes?
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| Posted 2/19/13 11:47 AM |
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Re: Charged taxes retroactively - can/will the town do this?
Posted by Paramount
I don't know, BUT.
I'ts JUST not worth "waiting". If you wait you will take the chance of being caught. So its up to you for the amount of risk you want to take.
Ask the woman on the home board who is the realtor at 21st cebtury. She always has excellent advice.
Thank you! (Hopefully you meant me.) 
I've never heard of anyone being charged retroactively (a lot of sellers have to go and get C/Os when they want to sell). However, it's something that is in the realm of possibility, I guess. But I don't know of an actual instance where it's happened (and almost every house I sell has some sort of C/O issue). Lack of C/Os is so common around here, and it's not like you get "in trouble" if anyone finds out, but it's just a hassle. If you have to sell quickly and a C/O is a prerequisite to selling (and it's not always), you may need to get an expeditor, which is costly. And if the work wasn't done to code, you may need a variance, which delays things further.
However, I don't think retroactive taxes are a concern because you are probably going to be taxed for the deck and other changes from the start, regardless of whether you get a C/O.
As long as the changes are visible from the outside (something like a deck, a pool, an extension... as opposed to something purely interior, like adding a bath to existing space in a basement), the towns typically know about the changes and will tax you for the improvements. The building department and tax department are really two separate things. The town officials can get an aerial view and see pools, sheds, hot tubs, etc. and tax them regardless of whether there's a C/O. They don't care; they just want their money!
If you look on public records (which are more readily available in Nassau), they will show extensions and other improvements for which there are no C/Os, precisely because they are being taxed for them. So if that's your reason for waiting on the C/O, you are probably not going to get your intended benefit of waiting.
It's always better to just get the C/Os if you can to save you hassle down the line, but a lot of people wait to get them. Especially for something minor like a deck. Worst case, if you go to sell and don't want to get the C/Os, you can just have the deck taken down. It's not like an integral part of the house. And a lot of lenders don't care about things like decks and other exterior improvements not having C/Os (but it depends on the bank). But you are not really adding value to your home if the work isn't C/O'd. I mean, I see sellers who have converted their garage into a gorgeous family room, for example;, but that family room has ZERO value as living space, unless there is a C/O for it (at least in the eyes of any bank who will be giving a mortgage).
Just as an aside - I know by me, in Town of Hempstead, it's nearly impossible to get a C/O for anything right now because the Town is overwhelmed with requests relating to the aftermath of the Sandy damage. So in a lot of areas, getting a C/O now isn't even really an option.
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| Posted 2/19/13 12:15 PM |
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bpmom
Feeling Blessed
Member since 6/07 2963 total posts
Name:
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Re: Charged taxes retroactively - can/will the town do this?
Thank you, Christine, for such a detailed response!
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| Posted 2/19/13 12:26 PM |
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