If you owned a rental in Utah County in 2019, the newest law shakeups will affect you moving forward!
Utah County started enforcing a new tax code that if you own a single family residence that you do not occupy, you will be charged 100% value of the home in your taxes instead of the 50% value you were previously paying. This went into effect on January 1st, 2020.
However, if you have a renter in that property for at least 180 days, that house will be exempt from that extra taxation. This change primarily targets those who do month-to-month leases or AirBnb style rentals. This change will be likely $1,000 or so a year and will effect refinances.
So, short-term rentals and AirBnb style renting will cost you more in annual taxes, but will hopefully be offset by the larger rents you can charge annually by renting this way. If not, you may want to change your properties to long term rentals instead!
If you have any questions about investing properly into real estate, feel free to reach out to me here!