top of page
  • Writer's pictureJosh Taylor

The Hidden Cost of Home Improvements: How They Can Raise Your Property Taxes

Let's face it, home improvements can make your home look better and increase its value. But did you know that some projects can also raise your property tax bill? That's right, the assessor's office could come knocking after you've completed a major renovation or added that pool you always wanted. So, what kind of home improvements increase property taxes?

Basically, any project that falls under the definition of "new construction" can trigger a reassessment and increase your property taxes. This includes anything that adds square footage to your home, like a new family room or an extra bedroom. It also includes anything significant that wasn't there before, like a pool or a major remodel.


But before you start to panic, not all home improvements will raise your taxes. Permits for repairs, replacement, and maintenance won't trigger a reassessment. So, fixing that leaky roof or replacing your old windows won't affect your property taxes.

The amount your property taxes go up will depend on how much value is added by your home improvement. The assessor's office will determine the new value of your property based on present market conditions and the total cost of construction. This figure will then be added to the existing value of your home, and your property taxes will be based on the new total value of the property.


But don't worry, there are some exceptions. Improvements made for earthquake safety, fire protection, soundproofing, or to accommodate persons with disability won't trigger a reassessment. And if you feel your recalculated property tax bill is unfair, you can always appeal with the assessor's office.

So, before you start your next home improvement project, make sure you know how it could affect your property taxes. Because let's face it, you don't want to end up getting screwed by a higher tax bill

5 views0 comments

Recent Posts

See All

Pros and Cons of Assuming an Owner's Loan

Pros: Lower Closing Costs: By sidestepping the need for a new mortgage, assuming the owner's loan can trim down on closing costs, offering a financial edge to the buyer. Possibility of Favorable Loan

Comments


bottom of page