Home improvements

From the 2024 DOR Tax Exemption Study

84.36.400 - Home improvements Description Once every five years, a taxpayer may file for a property tax exemption on physical improvements to an existing single family residential dwelling, including constructing an accessory dwelling unit, upon completion of the improvements. The exemption is limited to improvements totaling 30% or less of the structure's original value. Purpose To encourage homeowners to upgrade or make improvements to their residences. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $0.023 $0.024 $0.024 $0.025 Local Taxes $0.069 $0.072 $0.076 $0.080 Repeal of Repealing a property tax exemption would not increase state revenues. The repeal exemption shifts the state property tax to the currently exempt taxpayers and reduces the tax burden of other taxpayers. The repeal may decrease the local rate. Local taxing districts at their statutory maximum may experience a revenue increase. Potential ($ in millions): revenue gains FY 2024 FY 2025 FY 2026 FY 2027 from full repeal State Taxes $0.000 $0.000 $0.000 $0.000 Local Taxes $0.000 $0.002 $0.004 $0.004 Assumptions - The total estimated exempt value is $10.6 million. - This repeal takes ef