Pull a Permit get Property Tax Reassessment?

[evantwheeler]

I was talking to a co-worker yesterday. He said put solar on his house last year thinking he would end up saving money in the long run on electricity. When the permit was pulled, he said the county re-assessed his property taxes to current market value and it jacked his property taxes up a couple thousand a year, wiping out any savings from the solar, and ultimately costing him money versus not doing anything at all and continuing on life as usual without solar. He is in Riverside County. I didn't ask to see copies of his tax bill and I guess I could look it up online if I really wanted to be a snoop and fact check his story. It sounds a bit of a stretch to me for his taxes to get raised that much merely by adding solar.

I am curious what others experience has been with this? Lets say you pull a permit for a new septic tank, is the property going to be re-assessed at current value for tax purposes? I've never pulled a permit, just trying to learn the ins and outs of property/home ownership.

For someone like @SoCalDave doing his remodel, will the whole property be re-assessed at current market value, or will the tax assessment only increase by the amount of the "value add" by the addition? I suspect his taxes are quite low relative to others in the neighborhood due to how long he has owned his home. Would be an eye opener to receive a tax adjustment bill and pay new yearly tax nut for improving your property.

 

[havasujeeper]

That is a good incentive not to go solar!

 

[NicPaus]

Should just go up by permitted job amount. But I have seen it go both ways. Maybe they forgot to put the valuation of the job on the permit.

 

[HotRod82]

In my experience a repair like a new septic tank doesn’t trigger the tax assessment. If you add value to your home like a room addition, you get reassessed.
My solar system did not trigger reassessment, my new shop did.
I’m in San Diego county.

 

[Tamalewagon]

Typically, added square footage and/or changing the vesting on the property will trigger the tax reassessments. It's unusual that pulling a permit would trigger it but stranger things have happened.

 

[evantwheeler]

In my experience a repair like a new septic tank doesn’t trigger the tax assessment. If you add value to your home like a room addition, you get reassessed.
My solar system did not trigger reassessment, my new shop did.
I’m in San Diego county.

They re-asses the WHOLE property?

So lets say you bought 30 years ago. Build a shop now. Do they reassess your entire property to todays tax valuation? That could easily increase taxes more than $5k yearly....

 

[evantwheeler]

That is a good incentive not to go solar!

I'm learning that I should have bought a property with a shop or bought out where no one gives a shit about permits. Everything is a GD money grab.

 

[RaceTec]

When we added our pool they re-assessed the entire property but we had bought it just a bit earlier. It was still a HUGE kick in the nuts, they also back dated the amount to when the inspector signed off the completed pool, so we owed back taxes. It taught me that the best bet is to buy a property with everything you want already there, you can fix stuff up!

 

[CLdrinker]

When I pulled the permit for my patio cover. My property tax went way up.

 

[evantwheeler]

When I pulled the permit for my patio cover. My property tax went way up.

Did you investigate why and how they came to the new taxable value assessment?

 

[Done-it-again]

My solar didn't change my property tax, but my landscaping did. Don't recall the exact amount but it was less than 1k year that was added.

 

[boatpi]

He needs to go to the assessors office and figure out what happened. I doubt it was for the permit. But an update, do the value of the house at the same time do the property value increase not the permit

Remember proposition 13 is no more than 3% I believe a year but if they don’t raise it that 3% stays in a bucket and never goes away and that the property appreciates say 15% and here they can pull that 3% is piling up out of that bucket.

 

[dribble]

He needs to go to the assessors office and figure out what happened. I doubt it was for the permit. But an update, do the value of the house at the same time do the property value increase not the permit

Remember proposition 13 is no more than 3% I believe a year but if they don’t raise it that 3% stays in a bucket and never goes away and that the property appreciates say 15% and here they can pull that 3% is piling up out of that bucket.

Prop 13 limits it to 2%

 

[Good Stuff]

I was talking to a co-worker yesterday. He said put solar on his house last year thinking he would end up saving money in the long run on electricity. When the permit was pulled, he said the county re-assessed his property taxes to current market value and it jacked his property taxes up a couple thousand a year, wiping out any savings from the solar, and ultimately costing him money versus not doing anything at all and continuing on life as usual without solar. He is in Riverside County. I didn't ask to see copies of his tax bill and I guess I could look it up online if I really wanted to be a snoop and fact check his story. It sounds a bit of a stretch to me for his taxes to get raised that much merely by adding solar.

I am curious what others experience has been with this? Lets say you pull a permit for a new septic tank, is the property going to be re-assessed at current value for tax purposes? I've never pulled a permit, just trying to learn the ins and outs of property/home ownership.

For someone like @SoCalDave doing his remodel, will the whole property be re-assessed at current market value, or will the tax assessment only increase by the amount of the "value add" by the addition? I suspect his taxes are quite low relative to others in the neighborhood due to how long he has owned his home. Would be an eye opener to receive a tax adjustment bill and pay new yearly tax nut for improving your property.

If he did HERO/PACE for the solar they put the 20 year payment into your tax bill. It’s brutal and most people who go with that option are not paying attention to the horrible markup they get charged. I’ve seen it double tax bills regularly.

 

[Sleek-Jet]

At the very least your friend needs to file an appeal of the assessment.

 

[havasujeeper]

I built a 425 sq ft room addition. I did it myself and it cost me $20k. I got assessed and they increased my value $60k. I appealed their decision, and it came down to $40k. I appealed again and lost. The reasoning was that IF I paid a contractor, it would have cost me at least $40k. I showed the Assessor's office all receipts, that added to $20k. Still lost.

I added a pool and an entire backyard remodel. total price was $33k. They assessed at $33k, I appealed because plants and small decorative walls are not a valid property tax increase. This time I won. The County Assessor this time only increased my property taxes $20k.

You really have to watch the Assessor's Office!

 

[Orange Juice]

When I added my metal building, they increased my tax assessment the cost of the building. It was 2005 in Phoenix. I bought in 2004. So maybe it was total reassessment of property.

 

[evantwheeler]

If he did HERO/PACE for the solar they put the 20 year payment into your tax bill. It’s brutal and most people who go with that option are not paying attention to the horrible markup they get charged. I’ve seen it double tax bills regularly.

My neighbor is a victim of this. He freaked out when the tax bill was adjusted and is not tech savvy so I looked up his tax bill and did some research on the assessments and found out it was the HERO program. This program sticks it right up your backside. I want to say he will end up paying over $70k over the 20 years for his solar installation..... He thought it cost him $30k. I have a feeling he paid the contractor $30k to do the work and now has this tax assessment on TOP of what he paid the shady contractor. He gets taken advantage of every time he buys something and I try not to dig too much when he tells me things because I feel bad for him and don't want to make him feel worse.

 

[CLdrinker]

Did you investigate why and how they came to the new taxable value assessment?

No. Didn’t really see the point. It’s not like they were going to change it back. The house increased in value allot during that time so they probably got to snooping around because of the permit.

Is what it is.

 

[Hypnautic]

Yes--pulling permits in CA will trigger reassessment for the improvement they were pulled for.
Thats why we "repair" our fence's less than 25% each time. Only do a small section first then few months later next section and so on. Avoid needing a permit. Backyard patio awning was done in same fashion--when city inspector showed up unannounced cause some asshat neighbor called we were able to show him that 1 of 4 posts and 2 of 8 rafters were being placed due to water damage. Structure was not increasing in size and only replacing damaged material. 2 months later another post and rafter had termite damage and so on. . No permits needed.

Now off exact topic--but wait till these baby boomers start to pass and their properties get re-assessed on their heirs when they pass on. Prop19 is going to hurt families.

 

[bonesfab]

What are these permit things you speak of??? Better to beg for forgiveness than ask for permission.

 

[Ace in the Hole]

That is a good incentive not to go solar!

Most states....including AZ exempt solar system installation value from property tax.

I'd be fighting that deal tooth and nail.

 

[SoCalDave]

I was talking to a co-worker yesterday. He said put solar on his house last year thinking he would end up saving money in the long run on electricity. When the permit was pulled, he said the county re-assessed his property taxes to current market value and it jacked his property taxes up a couple thousand a year, wiping out any savings from the solar, and ultimately costing him money versus not doing anything at all and continuing on life as usual without solar. He is in Riverside County. I didn't ask to see copies of his tax bill and I guess I could look it up online if I really wanted to be a snoop and fact check his story. It sounds a bit of a stretch to me for his taxes to get raised that much merely by adding solar.

I am curious what others experience has been with this? Lets say you pull a permit for a new septic tank, is the property going to be re-assessed at current value for tax purposes? I've never pulled a permit, just trying to learn the ins and outs of property/home ownership.

For someone like @SoCalDave doing his remodel, will the whole property be re-assessed at current market value, or will the tax assessment only increase by the amount of the "value add" by the addition? I suspect his taxes are quite low relative to others in the neighborhood due to how long he has owned his home. Would be an eye opener to receive a tax adjustment bill and pay new yearly tax nut for improving your property.

Current PT are $1,172 per year and I'm told they will stay that way on existing house with the usual 2% annual increase.
The 900sqft addition will be assessed on the amount stated on the permit which I claimed at $80k. I'll let you know how it pans out come next year.

 

[hallett21]

They can (and will) assess any improvement that’s done through the building department.

Had a client that we did a remodel for. On the permit I put the bare minimum value on the application. When we were almost done the city tax assessor paid us a visit.

No added square footage, no added bathrooms etc.

Guy showed up with paperwork and ID that basically said he could do whatever he wanted. In hindsight I could have ran him off but I’m sure that would have made things worse.

 

[NicPaus]

Had asseror show up a week after I pulled a permit for a addition. He was asking all types of questions. What type of material for bathroom? Stone or tile. How much are the kitchen cabinets. Had a whole checklist. House was still in the parents name and property tax was at $280K when they purchased it along time ago. Never heard what it got assessed at after. But the average house on the block is over 2 million.

 

[Havasu blue label]

I was talking to a co-worker yesterday. He said put solar on his house last year thinking he would end up saving money in the long run on electricity. When the permit was pulled, he said the county re-assessed his property taxes to current market value and it jacked his property taxes up a couple thousand a year, wiping out any savings from the solar, and ultimately costing him money versus not doing anything at all and continuing on life as usual without solar. He is in Riverside County. I didn't ask to see copies of his tax bill and I guess I could look it up online if I really wanted to be a snoop and fact check his story. It sounds a bit of a stretch to me for his taxes to get raised that much merely by adding solar.

I am curious what others experience has been with this? Lets say you pull a permit for a new septic tank, is the property going to be re-assessed at current value for tax purposes? I've never pulled a permit, just trying to learn the ins and outs of property/home ownership.

For someone like @SoCalDave doing his remodel, will the whole property be re-assessed at current market value, or will the tax assessment only increase by the amount of the "value add" by the addition? I suspect his taxes are quite low relative to others in the neighborhood due to how long he has owned his home. Would be an eye opener to receive a tax adjustment bill and pay new yearly tax nut for improving your property.

That don’t tell you that but it’s true

 

[Bigbore500r]

When I pulled the permit for my patio cover. My property tax went way up.

That costco pergola is looking better and better to me......

 

[rivrrts429]

Yes--pulling permits in CA will trigger reassessment for the improvement they were pulled for.
Thats why we "repair" our fence's less than 25% each time. Only do a small section first then few months later next section and so on. Avoid needing a permit. Backyard patio awning was done in same fashion--when city inspector showed up unannounced cause some asshat neighbor called we were able to show him that 1 of 4 posts and 2 of 8 rafters were being placed due to water damage. Structure was not increasing in size and only replacing damaged material. 2 months later another post and rafter had termite damage and so on. . No permits needed.

Now off exact topic--but wait till these baby boomers start to pass and their properties get re-assessed on their heirs when they pass on. Prop19 is going to hurt families.

I think those being left property can avoid this if the property is held in a Trust with the trustees who’s property is being inherited listed in the trust?

What’s insane is we get taxed on the work performed and then have to pay tax on the improvement again through property tax. It’s insane the amount of taxes this state, and others like it, tax their citizens.

… death and taxes are the two certainties lol

 

[WYRD]

My solar didn't change my property tax, but my landscaping did. Don't recall the exact amount but it was less than 1k year that was added.

Why in the hell did you pull a permit for landscaping?

 

[charred1]

I live in SoCal. I asked this very question to the 3 solar companies I was looking to get bids from. They all said property taxes wouldn’t go up due to Active Solar Energy Tax Exclusion. I believe the incentive runs until Jan. 1, 2025.

 

[NicPaus]

That costco pergola is looking better and better to me......

That nice 12x12 one? Technically it requires a permit. Over 100 sq ft. Some cities if over $400 worth of work permit required. Garbage disposal permit required. Most can be avoided. But some cities have a program that shows old verse new from Google image and will see the pergola and get a notification.

 

[Bigbore500r]

That nice 12x12 one? Technically it requires a permit. Over 100 sq ft. Some cities if over $400 worth of work permit required. Garbage disposal permit required. Most can be avoided. But some cities have a program that shows old verse new from Google image and will see the pergola and get a notification.

Holy Crap.....skynet!

 

[havasujeeper]

Many cities overlay GIS mapping, and any changes from one year to the next can alert officials. That is why they have those big painted white X's on sidewalks and roadways.

 

[Mandelon]

YOUR QUESTIONS ANSWERED
IF I REMODEL MY HOME, WILL MY PROPERTY TAXES GO UP?​

Under Proposition 13, property is assessed for tax purposes at the purchase price, and the assessed value cannot be raised more than two percent per year unless there is a change of ownership or new construction.

But what constitutes “new construction” and how much will the taxes go up?

Under California property tax law, “new construction” is:

• Any substantial addition to land or improvements, including fixtures.
• Any physical alteration of any improvement, or a portion thereof, to a “like-new” condition, or to extend its economic life, or to change the way in which the improvement, or portion thereof, is used.
• Any substantial physical alteration of land which constitutes a major rehabilitation of the land or changes the manner in which it is used.
• Any substantial physical rehabilitation, renovation or modernization of any fixture that converts it to the substantial equivalent of a new fixture or any substitution of a new fixture.

Your county assessor’s office reviews permits individually and determines what is “substantially equivalent” to the old fixtures and what is assessable as new construction. If you do any remodeling, it’s a good idea to document what you’re replacing by taking photos before the work is done.

In general, remodeling and repair that are part of normal maintenance or cosmetic are not considered assessable. New additions that increase the square footage of a home or add new improvements that didn’t exist before are assessable.

So replacing your roof, oven or kitchen faucet would not raise your property taxes, but converting a garage or unfinished attic into a bedroom would.

If you disagree with a new assessment, you can file an appeal. Contact the clerk of your county board of supervisors for more information about the appeals process.

By law, some types of remodeling and new construction are exempt from reassessment. Solar panel installations are excluded from reassessment, and so is seismic retrofitting. Rebuilding after a fire or other disaster isn’t considered “new construction” for the purpose of property tax assessments.

Another important exclusion from reassessment is new construction for disabled accessibility.

Under Section 74.6 of the California Revenue and Taxation Code, the construction, installation, removal or modification of any portion or structural component of an existing building or structure that is done for the purpose of making the building or structure more accessible to, or more usable by, a disabled person, is excluded from reassessment.

However, this exclusion is not automatic. The property owner must notify the county assessor prior to or within 30 days of the completion of the project for which the exclusion will be claimed. All the documents necessary to support the claim must be filed with the assessor no later than six months after the completion of the project.

To claim the exclusion from reassessment for disabled accessibility construction, file form number BOE-63-A. It’s available from your county assessor’s office or website.

And here’s the answer to one more question: Only the improvements will be subject to reassessment, not the entire property. The assessment on the rest of the property won’t change. Remodeling will not cause you to “lose the Prop. 13” on your home.

Your Questions Answered: If I Remodel My Home, Will My Property Taxes Go Up?

www.hjta.org

 

[ChumpChange]

That nice 12x12 one? Technically it requires a permit. Over 100 sq ft. Some cities if over $400 worth of work permit required. Garbage disposal permit required. Most can be avoided. But some cities have a program that shows old verse new from Google image and will see the pergola and get a notification.

That’s what trees are for.

 

[Orange Juice]

YOUR QUESTIONS ANSWERED​

IF I REMODEL MY HOME, WILL MY PROPERTY TAXES GO UP?​

Under Proposition 13, property is assessed for tax purposes at the purchase price, and the assessed value cannot be raised more than two percent per year unless there is a change of ownership or new construction.

But what constitutes “new construction” and how much will the taxes go up?

Under California property tax law, “new construction” is:

• Any substantial addition to land or improvements, including fixtures.
• Any physical alteration of any improvement, or a portion thereof, to a “like-new” condition, or to extend its economic life, or to change the way in which the improvement, or portion thereof, is used.
• Any substantial physical alteration of land which constitutes a major rehabilitation of the land or changes the manner in which it is used.
• Any substantial physical rehabilitation, renovation or modernization of any fixture that converts it to the substantial equivalent of a new fixture or any substitution of a new fixture.

Your county assessor’s office reviews permits individually and determines what is “substantially equivalent” to the old fixtures and what is assessable as new construction. If you do any remodeling, it’s a good idea to document what you’re replacing by taking photos before the work is done.

In general, remodeling and repair that are part of normal maintenance or cosmetic are not considered assessable. New additions that increase the square footage of a home or add new improvements that didn’t exist before are assessable.

So replacing your roof, oven or kitchen faucet would not raise your property taxes, but converting a garage or unfinished attic into a bedroom would.

If you disagree with a new assessment, you can file an appeal. Contact the clerk of your county board of supervisors for more information about the appeals process.

By law, some types of remodeling and new construction are exempt from reassessment. Solar panel installations are excluded from reassessment, and so is seismic retrofitting. Rebuilding after a fire or other disaster isn’t considered “new construction” for the purpose of property tax assessments.

Another important exclusion from reassessment is new construction for disabled accessibility.

Under Section 74.6 of the California Revenue and Taxation Code, the construction, installation, removal or modification of any portion or structural component of an existing building or structure that is done for the purpose of making the building or structure more accessible to, or more usable by, a disabled person, is excluded from reassessment.

However, this exclusion is not automatic. The property owner must notify the county assessor prior to or within 30 days of the completion of the project for which the exclusion will be claimed. All the documents necessary to support the claim must be filed with the assessor no later than six months after the completion of the project.

To claim the exclusion from reassessment for disabled accessibility construction, file form number BOE-63-A. It’s available from your county assessor’s office or website.

And here’s the answer to one more question: Only the improvements will be subject to reassessment, not the entire property. The assessment on the rest of the property won’t change. Remodeling will not cause you to “lose the Prop. 13” on your home.

Your Questions Answered: If I Remodel My Home, Will My Property Taxes Go Up?

www.hjta.org

I’m going to add 200 more square feet to my patio, to accommodate a wheelchair ramp. Got it.

 

[Done-it-again]

Why in the hell did you pull a permit for landscaping?

My contractor did for the pergola that required crazy footings for the wind in Fontana. Also needed gas/water/electric for the BBQ island.

 

[C-2]

I had two large water troughs for my horses and they thought I built two sheds lol

Satellite GIS system found the “structures”

 

[shintoooo]

That's why when I was putting my new roof on and the roofer asked me if I wanted to pull a permit, I told him no. Fuck that.

 

[Orange Juice]

I had two large water troughs for my horses and they thought I built two sheds lol

Satellite GIS system found the “structures”

It’s quite revealing what they can see. When I pulled my permit for my metal building, the city clerk and I looked at a recent satellite image. This was in 2005.

Since then, they are available online, and updated somewhat often.

Resolution is better than a 12x12 stepping paver. My 40+ old year trees have hidden my potential project.

 

[WYRD]

My contractor did for the pergola that required crazy footings for the wind in Fontana. Also needed gas/water/electric for the BBQ island.

There's wind in fontana?

 

[Hypnautic]

That costco pergola is looking better and better to me......

Yup build a patio cover that does not attach to the home. No permit needed.

 

[C_J_J_C]

We had a large fight with Orange County Tax assessors office over new windows. House bought in 1970 and re-assessed to 2021 value (Over 7K a year more). We got lawyers involved.

Basically anything that adds value and is not a direct repair can trigger a reassessment. New roof like for like you are fine. A pool, adding a room, even a kitchen improvement remodel in O.C. will do a full reassessment.

We won by arguing we tried to do like for like but new codes wouldn't let us but honestly I will never pull a permit again.

 

[NicPaus]

Yup build a patio cover that does not attach to the home. No permit needed.

Not in CA. I am just now leaving a job in Torrance. Headed to the dump.

Owner just asked about adding a carport. So tenants could have covered parking. No way Torrance will approve it here due to setbacks. But I can guarantee a permit it is required. Inspector in this part of Torrance is @Melloyellovector s favorite. No way he would allow it.

 

[NicPaus]

We are not even allowed to put up a carport with tarp. Like the Costco and home depot ones. Code enforcement will show up.

 

[TCHB]

No tax assessment on out home in Henderson after Solar!

 

[Hypnautic]

I think those being left property can avoid this if the property is held in a Trust with the trustees who’s property is being inherited listed in the trust?

What’s insane is we get taxed on the work performed and then have to pay tax on the improvement again through property tax. It’s insane the amount of taxes this state, and others like it, tax their citizens.

… death and taxes are the two certainties lol

Moving property into an LLC will avoid a property re-assessment. Owner of LLC (can be Trust or natural persons) can give up to 50% ownership of LLC prior to passing and then remaining will transfer once they pass. LLC still owns property so avoids the re-assessment. Now most Owner Occ homes do not have an LLC.

Keeping the property in the Trust will give your heirs a step-up appreciation so if/when they sell they will only pay capital gains on difference from inherited value to sale price.
If heirs want to keep home from being re-assessed--the Heir will need to occupy the home and file a owner occ Homestead for minimum of 12 months.

Thank you CA voters for Prop19

 

[Hypnautic]

That nice 12x12 one? Technically it requires a permit. Over 100 sq ft. Some cities if over $400 worth of work permit required. Garbage disposal permit required. Most can be avoided. But some cities have a program that shows old verse new from Google image and will see the pergola and get a notification.

Double check in CA--but in NV if it is not an enclosed structure it can be up to (i think) 400sqft. If enclosed we are 100sqft too.

 

[CoolCruzin]

How will this work out .
Pull a permit 30 years ago for a patio cover.
Now you take the patio cover down 30 year later .
Will the tax assessment go down if you tell them. ??

 

[HTTP404]

@BasilHayden Is this a thing for solar?