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<br /> although the cost of improvements may be substantial,the actual value added can be significantly less. 'This can be IargDl�
<br /> attributed to three factors:
<br /> • Often times, improvements made to a house,particularly an older house, constitute routine maintenance and do not
<br /> cause the-,aluation to increase. Reshingling a roof.painting the house, repairing a foundation, replacing a plumbing
<br /> fixture are all examples of improvements that would not ordinarily result in a value increase.
<br /> • Improvements made to an individual's home often times reflect that-particular individual's personal likes or interests and
<br /> most times the cost cannot be recovered when a property is sold. adding a sauna, a greenhouse or an indoor swimming
<br /> pool would all be examples of improvements that typically add less value than their cost.
<br /> • Improvements made to different areas of a house typically result in greater or lesser returns. It is a well established
<br /> appraisal principal that remodeling or improving a house's service areas (kitchen, Iaundry and bathroom)will generally
<br /> yield the greatest return to the owner. Expenditures such as finishing basements or attics will generally produce the
<br /> smallest return.
<br /> Although these considerations may vary from house to house and market to market, in almost no instance is it possible to
<br /> receive a dollar for dollar return between cost and value added to the house.
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<br /> Under the law, a property owner must disclose to prospective buyers whether any improvements made to a home are
<br /> exempt from the property tax. Additionally, sellers are also required to notify buyers that the exemption will
<br /> terminate when the property is sold.
<br /> If you sell your property, only improvements made by the buyer after the closing date of the sale are eligible for the
<br /> exemption.
<br /> If the property loses its homestead status the exemption expires as of the next assessment date.
<br /> If the name of one of the owners of the property is removed from the title to the property as a result of a separation or
<br /> divorce, or if a name is added to the title of the property as a result of a marriage, the improvements continue to qualift•
<br /> I
<br /> or the exemption.
<br /> If you transfer the title to the property to someone else, but retain a life estate in and continue to receive the homestead
<br /> classification on the property,the improvements continue to qualify for the exemption. If you transfer title to a related
<br /> person or persons as a gift or inheritance, the exemption expires as of the next assessment date. .
<br /> In general, as long as you, the owner of the homestead, made the improvements to the house, maintain the property as your
<br /> principal residence and retain an ownership interest or control of the property,the improvements continue to qualify for the
<br /> exemption.
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<br /> If you live in a city or town that requires building permits,you must obtain a building permit for construction of the
<br /> improvement before the work,commences. In addition you must complete a separate application for value exemption before
<br /> the nest assessment date. If you do not obtain a building permit before construction begins,the improvements are not
<br /> eligible for exemption.
<br /> If you live in a city or town that does not require building permits you must make application for exemption before the
<br /> improvement is begun.
<br /> The exemption may be applied to no more than three separate improvements made to the house and garage. All
<br /> improvements listed on a single building permit or an application for the exemption constitute a single improvement.
<br /> In either case, if more than three separate improvements are planned you must choose which improvements you want to
<br /> qualify for the exemption.
<br /> Once an improvement has been designated for exemption, it cannot be repealed or replaced by a later improvement.
<br /> If you need additional information, please contact your assessor's office.
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