Posted on September 15, 2006 at 07:56:10:
Sure, home improvements make your residence more comfortable to live in and worth more when you sell. But major changes will add to the property’s assessed value, probably raising your taxes.
The key issue is usually the building permit; a copy of it will most likely end up on the assessor’s desk. Most localities are under intense budget crunches, and they need the extra income. But don’t attempt to gloss over the need for the permit. The legal penalties for proceeding without it can be severe, not to mention inconvenient: the building inspector can demand that you knock down a wall to let him inspect the new plumbing.
Major remodeling – adding rooms or substantially modernizing a kitchen, for instance – generally will cost more in taxes, but many repairs or cosmetic changes can add value without adding taxes.
If the reassessment is much greater than you expected, you can appeal. Just follow the rules and check comparable properties.