Re:Rent the Backyard (YC S19) wants to build a studio apartm...
by sburl on Friday July 19, 2019 @02:41AM
(#20476614)
The way this works with ADUs is a blended approach. The existing home's tax status is protected by Prop 13 and the ADU as a structure is appraised. While adding an ADU adds considerable resale value to a home, tax assessors don't typically value them that highly. It's also worth noting the ADU also becomes protected under Prop 13 after the initial assessment (https://maxablespace.com/granny-flat-tax-implications/)
Why not?
Prop 13 protects the homeowners from higher taxes if the property appreciates, but as far as I know that doesn’t cover renovations.
Otherwise you could buy a beat up $1M, year it down and still pay the same taxes.