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� . . ; _ ' . ' COST`OF 114�PROVEi1�iENT�S THE V�I:�E:E INCRE�SE Ta THE �'ROPER'T1f ' ..... _:. < . _ :�lthough the cost of improvements may be substantial, the actual value added can be significantly less. This can be largely attributed to three factors: • Often times, improvements made to a house, particularly an older house, constitute routine maintenance.and do not cause the valuation to increase. Reshingling a roof, painting the house, repairing a foundation, replacing a plumbing fixture are all examples of improvements that would not ordinarily result in a value increase. • Improvements made to an individual's home often times reflect that particular individual's personal likes or interesu and most times the cost cannot be recovered when a proper[y is sold. Adding a sauna, a greenhouse or an indoor swimmin� pool would all be e�mples of improvements that typically add less value than their cost. • Improvements made to different areas of a house typicall}�result in greater or lesser returns. It is a well established appra.isal principal that remodeling or improving a house's service areas (kitchen, laundry and bathroom)�vill generalIy yield the greatest return to the ow-ner. Expenditures such as finishing basements or attics �vill �eneraily produce the smallest retum. Although these considerations may vary from house to house and market to market, in almost no instance is it possible to receive a dollar for dollar return ben��een cost and value added to the house. ° _;:SAL�OR TRAi�SFER 0�O��tERSHIP OF PRQPERTI' ` : ..... ......... ...:...... , . .::.. ..:.:... .... Under the law, a property owner must disclose to prospective buyers whether any improvements made to a home are ezempt from the property tax. Additionally�, sellers are also required to notify buyers that the exemption will terminate when the property is sold. If you sell your property, only improvements made b��the buyer after the closing date of the sale are eligible for the esemption. If the property loses its homestead status the esemption ezpires as of the ne�t assessment date. 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 divorce, or if a name is added to the tit►e of the property as a result of a marriage, the improvements continue to qualifi� for the esemption. If you transfer the title to the property to someone else, but retain a life estate in and continue to recei��e the homestead classification on the property, the improvements cont:nue to qualif�� for the esemption. If you transfer title to a related person or persons as a aift or inheritance, the exemption e�pires as of the neYt assessment date. In general, as long as you, the o�vner of the homestead, made the improvements to the house, maintain the property as your principal residence and retain an o�ti�nership interest or control of the propert�•. the improvements continue to qualify for the esemption. ....; ::... ..:. .:...:... .::.;. .,;; >: �1��KING APPI:TC�TION ;:; . ... : : - If vou live in a citv or to�t�n that requires building permits, }�ou must obtain a buiidin� permit for construction of the improvement before the r��ork commences. In addition vou must complete a separate application for value exemption before ihe ne;ct assessment date. If you do not obtain a building permit before construction begins, the improvements are not eligible for exemption. If vou live in a citv or tow�n that does not reQuire building permits, you must mal:e application for e�emption before the improvement is begun. The exemption may be applied to no more than three separate improvements made to the house and�ara�e. All improvemenu listed on a single building permit or an application for the e�emption constitute a single improvement. In either case, if more than three separate improvements arz planned you must choose��hich improvements you want to qualify for the esemption. Once an improvement has been desi�nated for e�emption, it cannot be repealed or replaced by a later improvement. If you need additional information, please contact your assessor's office.