Property tax increase after ADU build.

[wet hull]

Anyone gone through this? Was your assessment outrageously high? Built a 1150 sq ft ADU on my peoperty. My original taxes were $5k year. Got a letter last year San Diego County reaassed our unfinished construction and increased us to $11k year. Now we just got our new assessment for finished construction and they added another $680 year. They decided my property was worth $390k more after the ADU. We have never not done a refi and we paid out of pocket. My actual build cost was $140k but I did most myself. Is there anyway to argue this assessment? I know I could sell for way north of their assessment but that's not my fault and city of vista wanted these damn things built. Just insane to pay almost $6k more a year.

 

[wishiknew]

Anyone gone through this? Was your assessment outrageously high? Built a 1150 sq ft ADU on my peoperty. My original taxes were $5k year. Got a letter last year San Diego County reaassed our unfinished construction and increased us to $11k year. Now we just got our new assessment for finished construction and they added another $680 year. They decided my property was worth $390k more after the ADU. We have never not done a refi and we paid out of pocket. My actual build cost was $140k but I did most myself. Is there anyway to argue this assessment? I know I could sell for way north of their assessment but that's not my fault and city of vista wanted these damn things built. Just insane to pay almost $6k more a year.

F**K Taxes

 

[BingerFang]

It’s like they reassessed your entire property… that’s fucked.

Good ol commiefornia.

 

[oldman]

ADU's suck, and degrade the neighborhood with rentals. if you need the extra income you did something wrong.

Just my .02

 

[wet hull]

It’s like they reassessed your entire property… that’s fucked.

Good ol commiefornia.

I didn't think they could do that? We even agreed to enter city of vista program. This was a agreement we would keep rent under a certain amount for 10 years and city fee was waived. My MIL lives in it rent free so no biggie to sign that commitment. Going to call county tomorrow and see who I can talk to.

 

[wet hull]

ADU's suck, and degrade the neighborhood with rentals. if you need the extra income you did something wrong.

Just my .02

Well you don't know shit!! I built it for my MIl after my FIl died suddenly and she had no where to go. I live on over a acre as do all my neighbors.

 

[oldman]

Well you don't know shit!! I built it for my MIl after my FIl died suddenly and she had no where to go. I live on over a acre as do all my neighbors.

it's one mans opinion, and after your family is gone it will become a rental, and generally lower property values, and kill the single family home.

I'll send pics of the abomination they are building next door on just under an acre.

that is not a big piece of property when you start adding structures to it.

Good on you for taking care of your family though.

I happen to live in a 125yr old historical structure in OC, this is not helping me.

 

[wet hull]

it's one mans opinion, and after your family is gone it will become a rental, and generally lower property values, and kill the single family home.

I'll send pics of the abomination they are building next door on just under an acre.

that is not a big piece of property when you start adding structures to it.

Good on you for taking care of your family though.

I happen to live in a 125yr old historical structure in OC, this is not helping me.

I do see your point of view as well and agree areas like yours in historical should not be touched. Especially if not built to match existing.

 

[oldman]

I do see your point of view as well and agree areas like yours in historical should not be touched. Especially if not built to match existing.

Again, good on taking care of family we have mom in assisted living with no provisions for what you've done. I'm just generally opposed to the concept of killing the single family home for a short sighted gain.

They generally just ad to congestion and urban blight.

 

[Smupser]

The whole ADU thing is a scam to me, even here in SD county where they have the “pre-approved” plans to save costs, you still go in for 2-300k, then they do the re-assessment, F-that

 

[TimeBandit]

I always laugh when politicians say we need "affordable housing".

They keep costs high with permits and taxes, ain't nothing "affordable" about that.

 

[whiteworks]

If it were to burn down you would get your property reassessed and a nice check for market replacement value assuming you have it property insured, just sayin

 

[havasujeeper]

I built a permitted 450 sq ft billiard room, wet bar and fireplace. It cost me $60K, but I did the work by myself. The next year, my taxes went up to reflect an additional $120K increase. I appealed to the County Assessor's Office, but lost, because they claimed had I contracted this build out, it would have cost me $120K.

The next year, I contracted out for a new pool, retaining walls planters and landscaping. This cost me $33.3K, and my property taxes increased to reflect an additional $33.3K increase. I again appealed to the County Assessor's office, and this time I won, because planters and landscaping should not increase my value. They adjusted my property taxes down to reflect a $20K increase because of the pool, which I thought was fair.

Yes, this was 15 years ago, but there is an appeal process when dealing with increased property tax increases, so take advantage of the process.

 

[Deckin Around]

@wet hull OC does not re-assess the whole property but they do have their own price per sqft calculation of the ADU improvement value. It sounds like San Diego does the same with you having built 1150sqft. At 390k you were assessed less than $350psf. That's a realistic build cost, they don't give a shit about your costs because everyone would just pay cash for labor and drop their build cost on paper.

 

[pronstar]

IMHO a prime function of the permitting process is to let the taxing authority know when you've done upgrades that increase the value of your home.

I had a 2:1 return on equity with our 800SF garage conversion ADU. $60k into it...increased the value of our place by $130k...but I lost $10k in value because I don't have a garage anymore.

I'll be building the Garage Mahal of my dreams soon enough

 

[hallett21]

Nothing more American than telling your neighbor what they can build on their property lol

 

[evantwheeler]

Nothing more American than telling your neighbor what they can build on their property lol

Nothing more foreigner than moving into a neighborhood and building some huge fucking eyesore.

 

[Caydens Cat]

That’s normal for SD, sorry. You got assessed at the current perceived market value ( now house + ADU). That’s the drawback of permitted builds, you expose your property to the current value calculator.

 

[evantwheeler]

That’s normal for SD, sorry. You got assessed at the current perceived market value ( now house + ADU). That’s the drawback of permitted builds, you expose your property to the current value calculator.

So a pulling a permit throws Prop13 out the window?

edit: it looks like it may....

https://www.boe.ca.gov/proptaxes/pdf/pub29.pdf

Change in Ownership and New Construction
The assessed value for most property taxed under Article XIII A is the prior year’s assessed value adjusted for inflation up to 2 percent. However, if there has been a change in ownership or completed new construction, the new assessed value will be the market value of the property as of the date that it changed ownership or was newly constructed. That property will also be assessed on the supplemental roll.

New Construction:
Any addition to real property, whether land or improvements (including fixtures) since the last lien date; or any alteration of land or improvements (including fixtures) since the last lien date that constitutes a major rehabilitation or that converts the property to a different use.

 

[Done-it-again]

Nothing more American than telling your neighbor what they can build on their property lol

I absolutely did... I didn't want some home made car port built on on their side yard that was next time mine...

 

[rivermobster]

We were Real careful when I went to remodel my house...

Taxes were based on square footage. So we stayed just a few feet under the next tax bracket!

Taxes went up a bit, but not much.

 

[BingerFang]

Nothing more foreigner than moving into a neighborhood and building some huge fucking eyesore.

10000%

 

[teded]

I think property taxes should be based on land value not what’s on it.

 

[Deckin Around]

We were Real careful when I went to remodel my house...

Taxes were based on square footage. So we stayed just a few feet under the next tax bracket!

Taxes went up a bit, but not much.

As the contractor, for interior remodel jobs with no addition we are the ones that put a value on the project. It is requested by the city when pulling the permit if the architect did not already do it. I can put down 50 K instead of 250 K. When the permit final is signed off, then the tax assessor send you a nice letter saying value has increased by exactly that number.

 

[wet hull]

As the contractor, for interior remodel jobs with no addition we are the ones that put a value on the project. It is requested by the city when pulling the permit if the architect did not already do it. I can put down 50 K instead of 250 K. When the permit final is signed off, then the tax assessor send you a nice letter saying value has increased by exactly that number.

I am a GC so me doing most of the work for my stated value will hopefully hold up when I argue this. I did pay out alot of subs as well. Funny how I can only apply for correction between certain months. I have to wait until July

 

[Smupser]

I’m covered under prop 13 and my taxes are Pennie’s on the dollar. I have some long term plans for our house and property, but am so weary about what to permit or how big/what to do

 

[Melloyellovector]

As the contractor, for interior remodel jobs with no addition we are the ones that put a value on the project. It is requested by the city when pulling the permit if the architect did not already do it. I can put down 50 K instead of 250 K. When the permit final is signed off, then the tax assessor send you a nice letter saying value has increased by exactly that number.

Yes and no, if value for work is below average, they can and do adjust to an average they have on record.
on pools we almost always put valuation 35-40k. OC and LA most of the time go with it. But I have had numerous calls over the years where assessor has changed to “ their standard valuation“ I did have a couple last year they did valuation below what was listed ( rare )

The fun part is when city peeps say, I want a pool. They go for …… I thought they cost so much more now. Ummmmmmmm lol

 

[Deckin Around]

Yes and no, if value for work is below average, they can and do adjust to an average they have on record.
on pools we almost always put valuation 35-40k. OC and LA most of the time go with it. But I have had numerous calls over the years where assessor has changed to “ their standard valuation“ I did have a couple last year they did valuation below what was listed ( rare )

The fun part is when city peeps say, I want a pool. They go for …… I thought they cost so much more now. Ummmmmmmm lol

Pools can swing so much in price for different options with the same size pool that's interesting how they would calculate.
In my cases, a lot of the remodel costs are not related to permitted items. By permitted I mean inspected like framing, electrical, plumbing, HVAC, insulation, drywall. The permit/assessor doesn't know that someone spent 50k on new appliances, $30k on flooring, $20k on paint, $50k on custom built-in cabinetry. None of that shit is part of the permit and shouldn't part of the valuation imo. My $250k contract with the client should not mean a $250k valuation increase.

 

[NicPaus]

Different cities do it differently. I can put the valuation on some. Others They have there own calculations They use.

I had 1 job. A week after we pulled permits the assessor was on sight asking questions. What type of windows, flooring, countertops and so on. They re assessed it high. They fought it and got it lowered back down the next year. It even shows on zillow when you check the address.

 

[Kachina26]

I think property taxes should be based on land value not what’s on it.

I think we can reasonably agree that people will pay a different amount for the land based on what's on it, no?

 

[JL95]

I absolutely did... I didn't want some home made car port built on on their side yard that was next time mine...

Like this

 

[Flying_Lavey]

The house next to my parents sold a few months ago to a developer. Imagine that.... they are adding in an additional structure for 2 more rentals on the lot! Now my parents lot is larger than most in Burbank due to the way the streets laid out with Lockheed's old back-up run ways being residential streets, but it is still no where near big enough for 2 more 2 bed rentals and their associated parking. There are already 2 other ADU's on their street. And to add into all of this, the city has already approved the plans and never said a damn things to my parents even though all detached garages in their neighborhood (and most in Burbank actually) are zero lot line garages which means their garage wall is the wall in my parents backyard. They do any modifications to the garage, its going to involve my parents yard as well.

I guess the good news about these ADU bullshits is that they are solidifying the need for blue collar workers in the future. With all these ADU's and garage conversions nobody has anywhere to store tools or to work on things so..... they need to pay someone to do anything.

Oh, and they have not done a FUCKING thing to reduce housing costs 1 bit. Finding a 3 bedroom rental in the greater LA area is impossible for less than $3k/month and is typically close to $3,500ish a month.

 

[Done-it-again]

Like this
View attachment 1484542

Yup, but didn't get that far. The post are still up though and its been 2 years.