Property Owner Tips

Repairs or Renovation? That is the question!

California voters passed proposition 13 in 1978 establishing base year values of property subject to a maximum 2% inflationary adjustment each year or upon change of ownership or "new construction". Replacing a roof, interior or exterior painting and replacing carpet are usually considered routine maintenance and are not considered new construction.  However, if a project becomes renovation or changes the use of the structure, a new base year value may have to be established for the improvements.

There are some general guidelines that property owners can follow to understand the consequences of proposed construction. The Revenue and Taxation code defines new construction as "any Alteration....Of any improvement....That constitutes a major rehabilitation, renovation or modernization that converts an improvement to substantially equivalent of a new construction".

Our appraisers first determine whether a project qualifies as "substantially equivalent of new". If the answer is yes, the new taxable value of the property is determined following renovation by adding the full value of new construction to the taxable value of the preexisting property less any value of property removed during construction.  PLEASE REMEMBER THAT VALUE, NOT COST OF RENOVATION is added.  As an example, a property owner converts a former garage into a bedroom and a bath.  The cost of the structure would be adjusted by the value of the original garage.

Kitchen remodels often present the same issues.  Kitchens come with cabinets, appliances, counter tops etc before remodeling.  Homeowners can easily spend thousands of dollars creating a remodeled kitchen that has the same elements when they are done.  It is clear that upgrading countertops from Formica to Granite, a 35-year-old range to a ceramic top and modern oven, along with all new cabinets add value to the home.  It is the job of our appraiser to enroll the correct added value, which is usually below the cost of the remodel.

Our staff is available to discuss major renovations or changes in use while still in the planning stages so that the property owner can get a rough idea of the impact of the project on their tax bill.  Should you have any questions, please contact the Mariposa County Assessor's office at (209) 966 - 2332 or email us at bcrafts@mariposacounty.org