Permits are an important part of the construction process, and it’s worth your while to get one and enjoy the benefits they provide. But, will it cost you on your property taxes? Homeowners are often concerned about the unknown cost that a permit might incur. There’s definitely a lot of talk around the water cooler on the topic. But how much of it is true?
Generally speaking, property taxes are calculated as a percent of the assessed value of your home. The assessed value can be and often is different than what you paid for it. The Kern County Tax Assessor is responsible for determining the assessed value of your home. When you pull a permit for home improvements or additions, it can change the assessed value of your property and therefore change the property taxes you pay each year. However, several factors influence the specific impact, including the nature and extent of the work, local regulations, and the assessor’s policies.
If you are replacing something you already have at your home, like a roof or a front door, it might not be considered an increase to your home value. It’s just swapping out what you already have with a newer version. However, if the construction is more of an upgrade, it may increase the value of your home and increase your taxes. One thing is for sure – if you are adding square footage to your home or adding a pool, this is a significant increase in value and it is sure to increase your property taxes. Something that is more of a maintenance item like repainting the exterior, repairing fascia, or similar is probably not going to impact your taxes significantly.
That being said, always do your own due diligence and talk to a tax professional, the nice folks at our local building department, or the tax assessor. The information in this article is intended for general education and is not a guarantee of the financial implications of construction on your home and is not tax advice.
Tax Assessor
Ridgecrest Building Department
