What is a Granny Flat exemption and how do I claim it?
This benefit allows a homeowner who adds living quarters to their home for a parent or grandparent, to exempt the cost of that new construction from the assessed value of a home. To qualify, the parent or grandparent must be 62 or older as of January 1 in the year the assessment is being done, and it must be their permanent home. Only construction completed after January 7, 2003 qualifies for the reduction.
Granny Flat Assessment Reduction
Under the 'Assessment Reduction of New Construction for Parent(s) or Grandparent(s) Living Quarters,' commonly called the 'Granny Flat' Exemption, homesteaded property owners who add living quarters for a parent or grandparent can apply to have all or part of the value of this new construction deducted from the assessment.
General requirements and limitations are as follows:
The property must be homesteaded by the property owner.
The parent or grandparent must be 62 or older as of January 1.
The 'Granny Flat' must be the permanent residence of the parent or grandparent.
Only construction or reconstruction completed after January 7, 2003 qualifies.
Construction or reconstruction must be properly permitted.
The maximum reduction allowable is 20% of the total assessed value as improved.