How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Barbara Your Own Question
Barbara
Barbara, Enrolled Agent
Category: Tax
Satisfied Customers: 3610
Experience:  18+ years of experience in tax preparation; 25+ years of experience as a real estate/corporate paralegal.
71603090
Type Your Tax Question Here...
Barbara is online now
A new question is answered every 9 seconds

Re; Los Angeles County Tax Re-AssessmentI'm thinking of

Customer Question

re; Los Angeles County Tax Re-Assessment
I'm thinking of remodeling my home. Where can i find the regulations as to how much i can remodel without triggering a reassessment? And if they reassess, do they reassess the whole home, or just tack on the addition?
Submitted: 1 year ago.
Category: Tax
Expert:  Barbara replied 1 year ago.
Welcome to Just Answer. My name is ***** ***** I will be happy to assist you.It is not the cost of the remodel that will trigger a reassessment.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.Examples of Taxable New Construction:New buildings or significant enhancements that change the size, condition or usability of a property.New additions to real property including room additions, swimming pools, spas, patio covers, central heating/air conditioning, fireplaces, decks, fences or flatwork.Examples of NON-Taxable Maintenance or Replacement:Maintenance or replacement of existing improvements including roofs, garage doors, kitchen cabinets, counters, bathroom fixtures, heating/air conditioning units, flatwork or fencesCertain types of new construction are specifically excluded from assessment. These may include alterations to make a building more accessible to, or more usable by, a disabled person; active solar energy systems; seismic rehabilitation or retrofitting or a fire sprinkler or detection system. The following links contain excellent information you will find helpful:http://assessor.lacounty.gov/wp-content/uploads/2015/02/E-36P.pdfhttp://www.burginconstructioninc.com/will-a-remodel-increase-my-property-taxes/Please let me know if I can assist you further.Thank you and best regards,Barb
Expert:  Barbara replied 1 year ago.
Just following up with you to see if you have any other questions or concerns about this topic. If so, please come back to me here, and I will be happy to assist you.Best regards,Barb
Customer: replied 1 year ago.

Barbara. Thank you for this excellent information. Do I understand correctly that there are 3 scenarios as follows?

1. no reassessment

2. partial reassessment (addition of the value of the remodel to the prop 13 basis)

3. complete reassessment of the property

if I understand this correctly, then what are the guidelines differentiating between a partial and complete reassessment? Is it the square footage? or number of walls?

thank you again,

Expert:  Barbara replied 1 year ago.
A reassessment, if any, is made on the "new construction"/remodel not the entire property and some items are considered "replacement."Based on the information in the links I previously provided, the Assessor’s Office determines the increase in value by 1) considering the total construction cost and by 2) reviewing recent sales of similar remodeled properties in the same area. Items that will trigger reassessment are additional square footage added to an existing building and additional buildings or amenities added to a property, such as a garage, swimming pool, or bathroom.Best regards,Barb
Customer: replied 1 year ago.

i have been told by different people that if the square footage added is under 500 sq ft then it escapes reassessment completely. Is that true?

Expert:  Barbara replied 1 year ago.
According to my research,Assessable new construction MAY BE any of the following:new structures;area added to existing structures;new items added to an existing structure such as bathrooms, fireplaces, central heating / air conditioning;physical alterations resulting in a change in use;rehabilitation, renovation, or modernization that converts an improvement to the substantial equivalent of a new improvement;land development (grading, engineered building pad, infrastructure).Examples: new homes, room additions, patio covers, pools, spas, and decks.The key words here are MAY BE.I found no square footage limitation or requirement.