We Added over 550 sq. ft. o to home.It 's my understanding That pass final inspection weekends oz The county assessor Will Come Out and Assess my property.Will The basic value of the Home to Be The New reset value and taxed at Will I Be Immediately That new value? I am Currently taxed was gain of about $ 330,000 right now and Expect the new value to Be Around $ 550,000. That's a difference of about $ 220,000 or $ 2200 in tax liability.Is There was limited to How Much THEY CAN Increase my property tax bill Under These Circumstances, Will I be charged extra $ 2200 The next year, Prop. 13 Does Gold Come Into Play Under These Circumstances? Thanks!
Cinda Waltman says...
Under Prop 13, the old part of the house will continue to be taxed at the old assessed value, subject to a maximum 2% increase per year.The assessor will determine an assessed value for the addition, which will then be added to the existing assessed value for the old part of the house.In the first year, since the completion date (i.e. final inspection date) probably will not coincide with the property tax year, you will only have to pay a supplemental tax for the addition, which is pro-rated from the completion date.In all subsequent years the combined assessed value is the basis for determining your tax.
Keep all your receipts for the cost of the addition.You may need them if you want to contest the valuation the assessor has placed on the addition.You may also need them for figuring capital gains when you sell the property.
Posted on September 30, 2010
