We all know that somewhere, some way, the government always gets their “cut”. From income taxes to sales tax it seems that nothing is untouchable anymore. So, it stands to reason that anyone considering home improvements will wonder what those improvements will do to their property value and, eventually, their property taxes.
We’ve Done The Dirty Work For You…
Seeing as how this type of information is often hard to find, and even more often hard to understand, we have decided to do the dirty work for you. We’ve researched what types of home improvements are considered “taxable” and which are not. The information below comes directly from the Orange County, CA Office of the Assessor and is a handy homeowner’s guide to how remodeling may or may not affect your property value:
New Construction is Taxable – Typical Maintenance & Repairs Are Not!
- -New construction is taxable, but does not trigger a reassessment of the entire property.
- -Only the market value of new constructions is added to the existing Proposition 13 value.
- -New construction is subject to a one-time supplemental assessment.
- -Maintenance or replacement of existing items is not taxable.