Ask Phyllis: a blog series of frequently asked real estate questions. Email us here
Will a remodel affect your taxes?
Dear Phyllis:
I have a question regarding property tax reassessments when an owner adds additional square feet. My elderly aunt and uncle recently completed a remodel/addition to their home (adding about 800 square feet). They have not received a property tax reassessment. Therefore, could you outline the steps indicating who is responsible for notifying the county? Also the estimated time before they receive the supplemental tax notice? They told me they did receive the certificate of occupancy indicating the additional square foot added from their city. But nothing from Los Angeles county. What penalties could exist? It’s been a little over a year? I appreciate your assistance.
Sincerely, G. Lee
Dear G,
I contacted the LA County Tax Assessor’s office in Sylmar and spoke to Anna. I was told that if the addition is permitted, the Department of Building and Safety notifies the assessor of the addition. It takes approximately one year to be contacted by the Assessor for the reevaluation. Meanwhile, there should be no action required by your aunt or uncle.
The Assessor does not reassess the home’s value; they simply add the value of the addition to your present base. For example:
Present Tax Base: $700,000
Value of Addition: 60,000
New Tax Base $760,000
If the existing addition is not permitted it is likely that it will not be known by the Assessor and there will not be an increase in property taxes. According to my conversation, it does not seem that any penalties will apply if called to the Assessor’s attention at a later date.
Will a remodel affect your taxes? To sum up, this remodel could have serious ramifications. I suggest that you contact the Sylmar office directly at (818) 833-6000.
This was so helpful. I was always under the impression that the whole house was reassessed. This makes more sense and the idea of a remodel much more attractive.