Aebrown, Other/Just Looking in Portland, OR

Can turning space over the garage into a dressing room raise my property taxes?

Asked by Aebrown, Portland, OR Tue Jul 20, 2010

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When there is a remodel the assessor calls that an "exception event" which allows them to increase your assessed value based on the improvements. This only happens if it reaches a value threshold of 10,000 for improvements done in one year or a total of 25,000 for improvements done over 5 years. But even this gets complicated. The "value of the exception" is based on how much increase in market value the assessor thinks it created then they apply a property ratio (which changes depending on the year and the market over all). The property ratio is probably around 55% to 60% this year.

So the new dressing room would have to increase the market value of the property by over $16,000 in order for them to add 10,000 to your assessment. Anything lower will not reach the exception event threshold for an increase.
0 votes Thank Flag Link Thu Aug 15, 2013
Taxes on houses in Portland make no sense at all. You can buy a million dollar listing and pay 500 ayear in taxes and then there are houses that sell fpr 200,000 and you pay 5000.... But the investment guy is right on the button
0 votes Thank Flag Link Thu Aug 26, 2010
Yes. Taxes would go up.

I am the co-founder of Prime Property Tax Negotiation...a Portland, OR based company that lowers commercial assessed property values on a contingency fee basis. Your house works the same way...if you increase the value...the taxes will go up. That includes raising the value through upgrading the improvements, as well as upgrading the use.

rick@primeptn.com
Web Reference: http://www.primeptn.com
0 votes Thank Flag Link Mon Aug 23, 2010
Aebrown, the tax assessor by law comes to your home to physically and visually inspect the house every 6-7 years. You never have to let them in but hey might walk around the house. They can presume what looks like has been redone from the last time or from previous pictures to make any adjustments but if it was not noticeable from the exterior it might get by. But when you are doing electrical, insulation, heating and sheetrock you will probably have a very slight increase in value. You are making more liveable square footage. The new assessment comes out as of July 1, 2010 so if you are doing it now it will not show up until next Oct 2011 on your tax statement if it shows up at all. Good luck to you.
Tom Inglesby, Broker
RE/MAX Equity Group inc
503-319-9035
0 votes Thank Flag Link Wed Jul 21, 2010
Even if you don't mean a bedroom, but do mean a dressing room - if it's liveable space (heated), your assessment would incrrease, and , thus, your property taxes will increase. If you're adding this dressing room off of your bedroom or bathroom, it shouldn't increase your taxes by much - a bedroom would add more value, and more than likely cause a higher tax increase.
I am sure if you call the tax assessor's office, they could give you an idea of what the increase might be.

Good luck!
0 votes Thank Flag Link Tue Jul 20, 2010
Yes. I take it you mean a bedroom. Adding a bedroom to your home will in most cases increase your property taxes.
0 votes Thank Flag Link Tue Jul 20, 2010
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