Build, Remodel & Repair

Home Construction, Stairs, Color Pallete Collage

Are you considering or in the process of building, remodeling, or performing repair work and wondering if you will be reassessed?
  1. Description
  2. FreQuently asked questions
  3. Forms & Resources

Your assessment may be adjusted when there is construction activity on your property.  The impact on your assessment will vary depending on the work that is being performed.

If the new construction is being done as maintenance and is considered a repair/replacement of an existing improvement using “like for like” materials, there may be no reassessment required.

If the new construction is only partially completed on the lien date (January 1), the assessor is required to estimate the fair market value of the new construction in its state of completion on that date. This continues each successive lien date until the new construction is completed.

Upon completion, the portion of the property which is newly constructed is reappraised at its fair market value and a new base year value is established.  Reassessment will only be based on the new construction and not the pre-existing improvements.


“The assessor shall determine the new base year value for the portion
of any taxable real property which has been newly constructed.”
- Section 71, CA Revenue and Taxation Code.


Typical projects that qualify as
assessable new construction

Examples:
  • Additions to existing improvements
  • Increasing the square footage of a home
  • Converting an unfinished basement or attic into a living area
  • Adding a garage, sunroom, enclosed patio, or elevator
  • Adding a swimming pool, spa, sauna, patio, or deck
  • Demolition of an existing structure (value may be removed)
  • Bathroom - the addition of one, structural changes, upgrading of plumbing and/or electrical systems, changing the floor plan, increasing the size, replacing cabinets, countertops, flooring or fixtures with upgraded material and finishes
  • Kitchen - structural changes, changing the floor plan, increasing the size, or remodeling with upgraded finishes that change the character and quality of the structure
  • Taking an entire house or a portion of the house down to studs for remodel
  • A change in use (for example, converting from industrial to residential use or converting storage space to habitable space)

Typical projects that do not qualify as
assessable new construction

Repair/Replacement of:
  • Central heating and cooling system, or replacement of wall or floor heating with baseboard heaters
  • Galvanized waterlines with copper or plastic waterlines
  • Wood-framed windows with energy efficient metal or aluminum frames;
  • Dry rot or termite damaged joists, studs, rafters, stairway, and/or exterior siding
  • Molding strips, plaster, drywall, and wall paneling with similar substitute materials
  • Wall or floor covering
  • Kitchen or bathroom cabinets, countertops, flooring, fixtures, or built-in appliances with items of similar quality
  • An electrical fuse box with circuit breakers
  • Doors, windows, stairs, fences or decks or repairing thereof
  • Roof cover with material of similar quality
  • Rebuild after a fire, flood, or natural disaster - When proper paperwork is filed