Teardown or remodel? It’s a taxing question.

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Teardown or remodel? It’s a taxing question.

June 23, 2016

Everyone knows the trick. “Leave one wall standing” and the project is not considered a teardown, it’s categorized as a remodel. It’s simple, the owner’s want to save $$ on taxes. I get that. The problem is these projects are not remodels. Not even close. They are teardowns from the inside out. Some might say this is a loophole that cost cities, counties and states revenue. The question is: why do cities, counties and states continue to allow this to happen?

Sure I could whine about the fact there are six of these “remodeling” projects going on in my neighborhood—one next to me, one across the street from me and three behind me—all at the same time. I would not consider any of them simple remodels. I have included pics to prove my point. However, I’m not going to whine. Instead, I am going to point out that the city is losing much needed revenue, ( I have called for a teardown fee numerous times in this forum and in public.) So you can see I feel strongly about it.

Let’s consider a teardown fee, but first we have to redefine teardown from remodel and that may be a state matter. OK, Senator Jerry Hill, Assemblyman Kevin Mullen, Congresswoman Jackie Speier…you want to raise some serious dough? Consider looking into this loophole. Let’s not fall for the “leave one wall standing” BS.

Posted in Design Review, Local Real Estate, Smart Growth

6 responses to “Teardown or remodel? It’s a taxing question.”

Samiselfie

June 23, 2016

Big houses on tiny lots.
Sorry you have to live through the chaos while owners are away and leave the neighbors to deal with long time construction noise, trucks, etc.
In Burlingame, they allow construction every single day from 7am to 7pm. Ouch!
Are these new purchase homes being “remodeled’?
It is insane to call these remodels.
Hollyroller@gmail.com

June 24, 2016

Since Prop 13 has become the law of the land, infrastructure has suffered all over the State of CA.
-Schools and Teachers
-Road and Bridge removal and replacement
-Mosquito Abatement
-Mental Health Care
-Prisons that are now the Mental Health Care Facilities of our State
-Mass Transit
On and on..
This small article shows the abuse wealthy people have regarding the inability to see beyond their fence.
Prop 13 was a good concept 40 years ago.
However, it is being abused, and also a relic that needs’ to end.
Sadly, no politician will touch this “third rail.”
There is no way our current US Political System will last much longer if any person entering politics just for the benefit of society has to answer to the Wealthy, Religious, Corporate before the basic benefit for all.
I am now passing my Stump/Soap Box to anyone else who cares.
Hollyroller@gmail.com

June 24, 2016

One more point, that I am sure you all will agree with..
The only two candidates available to represent what is the most “Important Country in the World” are the least qualified to do so, in my opinion. Good people are just to “jaded” to step forward.
By the way..
If Gary Johnson runs, I am voting for him.
Otherwise, I will vote for Trump because he just may screw things up enough that we can have a revolution.
As well as come to our senses.
“Change” did not work due to what Obama had on his plate when he stepped into office.
Revolution-Peaceful Revolution, is what may be coming down the pipeline.
Because we have run out of excuses to live the way we do.
Everyone needs to contribute to the Greater Good. Just a little.
This article on Burlingame Voice is a powerful example of just how far we have fallen from the reason this country was once great.
Jennifer

June 24, 2016

So, this one I’ve been wondering about, too, and finally got through to the County Assessor’s Office. While decades ago, it might have been a workaround tax trick to get a lower assessment, that is no longer the case, but apparently, the lore lives on. A single wall left up does not lower the taxes. However, a house with various walls (as shown) stripped down to the studs as opposed to a brand new structure, will not be fully assessed as “new” since some of the building substance is being reused– so yes, a partial savings, and apparently the assessor says they usually go out twice to look: once during construction, and once after completion. With regard to how the City of Burlingame views what the Planning Dept. categorizes as a “remodel” or more frequently, as in this case, an “addition”, it may have something to do with the verbiage I’ve seen on some staff reports: “CEQA guidelines (Section 15301(e)1 for additions to existing structures are exempt from an environmental review provided the addition will not result in an increase of more than 50% of the floor area of the structure before the addition”…And in that regard, maybe there is some kind of local savings as far as permitting fees or such. Also, if part of a structure involves a non-conforming setback, these walls frequently get left in place (stripped or not), to retain the substandard setback– In that case, with major projects of 50% or more, in fairness to the neighbors and character of the city, those setbacks should have to be redone to conform.
Joe

June 24, 2016

No more than 50%! “Only” +51% triggers CEQA! One wonders where all the environmentalists are when something like this lives on.
Steve

June 27, 2016

Russ, I believe that the property tax revenues stay within the county so how would the Feds or state raise “some serious dough”? Additionally, I agree with Jennifer that leaving up a single wall does not do anything to lower the property tax.

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