Will a home addition change my taxes?
In addition to the CPI, increases in taxable value result from new construction, remodeling, and the value of property that may have been exempt from taxes or not included on the previous assessment roll. Decreases in taxable value result from the removal or destruction of property, or the value of property that has been exempted or removed since the previous assessment.
Market values increased in your neighborhood by 2%. Also, the appraiser for your area has estimated that your addition will add $50,000 to your current $200,000 SEV.
$200,000 X 1.02 =204,000 + $50,000 =$254,000. The CPI was 2.8% so your Capped Value is: last year's taxable value, $175,000 X 1.028 = 179,900 + $50,000 = $229,900. Your Taxable Value is the lower of the SEV and the Capped Value, or $229,900.