Pursuant to Tax-Property Article §8-104, newly constructed improvements that add less than $100,000 to a property's full cash value may not be picked up out-of-cycle as new construction. These new improvements should be added at the next triennial reassessment. Base full cash values should not be revised to include the less than $100,000 improvements per TaxProperty Article §8-104 (2) (i), (ii), (iii).

New dwellings that add less than $100,000 should be picked up as a change in use or character. Change in use or character revaluations are effective only for the upcoming semiannual date of finality (July 1). New construction equal to or greater than $100,000 may be added quarterly, annually, or semiannually, depending on the jurisdiction.

When picking up new improvements, it is important to remember that it is the total increase in value, from both land and improvements that determines if the new improvements are to be added out-ofcycle as new construction or a change in use. For example, a new dwelling is completed and valued at $95,000. Vacancy factors of $6,000 are also removed from the account. Because the total increase is greater than $100,000, it should be added as new construction.

If assessor staff determine that a permit with estimated costs greater than $100,000 will increase the property’s assessed value by less than $100,000 then the “Supervisor Approval” field must be checked in the permit screen of AAVS. In addition, the permit must be coded as RAP (reassessment permit) and a note must be entered into the permit in AAVS indicating the specific reasoning as to why the permit is coded as RAP.

Comment
It is not uncommon for a dwelling to be razed or removed, and at the same time a new dwelling moved to, or constructed on the same property. These events should be treated separately even though they occur at the same time. The razed improvements would be abated per Procedure 067- 070-050 and the new dwelling would be added as described above.​