Does a Sunroom Addition Raise My Property Taxes? | eHow

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Arizona-based Mary Schultz has contributed articles about family, health, home improvement, agriculture and travel to newspapers and magazines. For over three award-winning decades as a marketing writer, Schultz has focused on technology, financial and insurance services and products, medical care, health and fitness, community heritage, tourism and charitable causes. She holds a Bachelor of Arts, honors English, from California State University, Northridge.

A sunroom, even if it utilizes an existing patio floor, is typically considered to be new construction in that it is an addition to an existing structure. Any new improvement a homeowner makes, such as adding rooms or a wing, building a patio cover, adding an in-ground swimming pool and spa or building a deck or a sunroom may increase the property's taxable value.

A sunroom is considered to be a living space, subject to local building codes. Codes are likely to be very specific. In general, you cannot construct, erect, alter, enlarge or convert a building or structure that is regulated by a community's building code without first obtaining a building permit.

In some areas, construction without a permit is in itself a violation of county code. It can be punishable by law as a misdemeanor. Additionally, you may embark on construction and then be issued an order to stop work until you obtain permits. You could be required to submit plans to the local building department and to pay penalty fees that are far higher than what the original fee would have been. Once you get the permit, you could be required to tear out and uncover work already done to provide for inspection.

Usually, new construction such as the addition of a sunroom is tax assessable provided it adds value to the property's assessed value. The revised assessed value is typically determined as of the date when the construction is complete and you get a certificate of occupancy. If the sunroom has changed the size of the structure by adding enclosed habitable square footage, only the amount of difference is considered for the new assessment. As an example, if the residence was formerly assessed as 1,200 square feet and with the addition of the sunroom it is 2,000 square feet, the increase in size is 800 square feet. The market value of the additional square footage would likely be added to the assessed value of the house.

Some homeowners decide to add a sunroom and not to obtain a building permit. No one in their neighborhood may report the addition to the local building department or to the assessor's office. They may intend to occupy that house all their lives and never sell. However, if the need to sell does come to pass, a problem can arise. They are usually required to disclose to any potential buyer that the addition is not permitted. At the time the property transfers ownership, the assessor may make the discovery and may take action for back taxes. The assessor would in all likelihood estimate or otherwise determine the date the construction was completed and make a correction to the tax assessment for the number of years permitted by local law.

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Does a Sunroom Addition Raise My Property Taxes? | eHow