Questions about Property Tax Reassessment

Dear Phyllis,
I have been a fan since your column first
appeared in the Glendale News-Press. My
question is about property tax reassessment. My
wife and I have owned our two-bedroom, one-bath
home since 1982, and due to Prop 13, our property
taxes are very low. We never had children, so the
house size was never an issue. My wife has been
after me to add a master suite with a second bath
and walk-in closet. Besides the inconvenience, I
don’t want our property taxes to skyrocket. I am
seeking your sage advice. I appreciate any insight
you can provide. Robert

Dear Robert,
Thank you for being such a loyal reader. You
bring up a common concern among long-term
homeowners in California. Thanks to Proposition
13, your property taxes are based on your
1982 purchase price, with only modest annual
increases allowed.
Only the value of the new construction—in your
case, a primary suite with a second bath and walk-in closet—
will be added to your existing assesses value. The rest
of your home remains assessed at its original
Prop 13-protected amount, plus the
annual increase of no more than 2%.

Let’s say your home is currently assessed at
$150,000, and you add a primary suite valued
by the county assessor at $100,000. Your new
assessed value would be approximately $250,000.
So yes, your taxes will go up, but not nearly as
much as if the entire home were reassessed at its
current market value.

Remodeling can be messy, time-consuming,
and disruptive, especially if you remain during
construction. It’s wise to ask yourself whether
enduring months of construction is worth it, or
if moving into a home with the desired features
might make more sense. If you or your wife are
over 55, you can transfer your existing property
tax base to a new home (that’s for another column).
If you’re curious about what your current home
might sell for and what your purchasing power
could look like elsewhere, I recommend talking
with a trusted local Realtor. Even if you don’t
want to jump into anything, attending a few open
houses can help you visualize your options and
better inform your decision.

I wish you the best of luck with whatever
decision you make.
Warm regards, Phyllis