Obtaining building permit for renovation will result to reassessment?

[ladera3h]

Quick question here. In orange county, if a homeowner obtained a permit to do some interior renovation (new kitchen, new bathrooms, etc.), will that result to higher assessment? Thank you!!

 

[eyephone]

In theory yes.

 

[lnc]

No.
http://www.ocgov.com/gov/assessor/realproperty/supplemental

Supplemental Assessments:

New Construction and Additions

-A supplemental assessment for new construction is based on the market value of taxable new construction, and is usually an increase to taxable value. Some examples of taxable new construction include room additions, pools, and patio covers. In addition, significant remodeling that changes the utility, size, or effective age of a property may be considered new construction.

-Generally, normal maintenance and repairs are not taxable and will not increase your taxable value. Examples of normal maintenance and repairs include a new roof, garage door, kitchen cabinets or counters, and bathroom fixtures.

 

[ladera3h]

Thank you both! Looks like there is a grey area. How about significant renovations with new kitchen, new bathroom and new flooring but no additions?

 

[lnc]

I think your interior renovation are more cut-and-dry, there should be no affect on the tax value.

Just like all these new builds in Irvine, home owner replace flooring, counter tops, bathroom tiles etc right after close of escrow, and there's no change on the tax basis.

And you can always claim your renovations are "repairs" and there will be no new assessment.

The grey area are the things like landscaping, BBQ island, pool etc.  These thing actually could be reassessed but they don't.  All the new home in Irvine all have some sort of improvement in the front/back yard (after COE), but I haven't hard of any been reassess for tax value.