Purchasing and owning real estate anywhere involves a myriad of costs & benefits. Las Vegas is no exception. Our master planned communities and home owners association fees are just the beginning. All homes have property taxes due to the county or city each year. Some homes in our beautiful valley also have what are called SID, or LID taxes on them, while others do not. What are these taxes, why are they there & how are they paid?
Don’t fret, understanding & managing these costs can be as simple as contacting a good Las Vegas REALTOR®. If you find a good one such as myself that doesn’t add “brokerage fee” to that cost list you’re in luck! Read on to understand what a SID or LID tax is, find out if you have one owing on your home, & when it’ll be paid off.
A SID is a Special Improvement District Tax
A LID is a Limited or Local Improvement District Tax
SIDs and LIDs are additional taxes levied on homes within master-planned communities. You’ll see them in Summerlin, Mountain’s Edge, Providence & Green Valley among other large developments.
Special Improvement Districts, or Limited Improvement Districts benefit from the improvements & infrastructure specific to that district. If you live in Mountain’s Edge, your additional taxes pay for things like Mountain’s Edge Park, and Exploration Peak Park. If you live in Summerlin, they are paying for things like Summerlin Parkway and extra foliage on the streets.
Why do some homes have SID or LIDS & Others Do not?
The idea is that all of Clark County benefits from Clark County Property taxes. Those fund things like our police, firefighters, and teachers. SIDs & LIDs fund expensive improvements benefitting only homes near them. If you buy a home in an area with a SID/LID you will pay for the improvements through these taxes.
These taxes exist in most master-planned communities & are property-specific. They need to be calculated into your qualification amount for a home purchase. Eventually they’re paid in full & no longer need to be accounted for in your monthly housing payment. In the mean time, you can NOT ignore them.
If not paid, you could face foreclosure over a bill of just a few hundred dollars! Be sure you’re using a REALTOR® who can explain how this impacts your budget. If you don’t have one yet, call me. I’m happy to help you without charging you a brokerage fee. After all, you’ve already got a surprise tax to pay.
When are payments due?
These payments are often due twice a year until the balance is paid off. Many times your mortgage company may not make these payments out of your escrow account. If this is your case, you need to make a separate payment before the due dates.
If the mortgage company discovers they haven’t included SID/LID collection in your escrow account, they may add it. Your mortgage payment may go up until the debt is paid off. Be sure you know what’s required of you. You will either pay this tax or lose your home for a fraction of it’s worth.
Where can I see if my home has a SID or LID & if it’s being paid?
A company called Assessment Management Group auctions off your over due SID/LID back-taxes to investors in the Las Vegas area. You can visit their site to check your balance and account standing. You need to make payments yourself unless they are included in your mortgage payment. I’ve framed in the AMG website below if you’d like quick access.
Remember, I am not a tax, or legal professional, only sharing my experience & my services as REALTOR® in Las Vegas. If you need to consult a professional in another field, always be sure they’re qualified to help. If you have any questions, feel free to contact me using the yellow contact button, bottom right.