Swimming Pools

• In New York State, a homeowner must obtain a building permit to install a swimming pool, or to do major renovation or restoration of one. The building permit application defines the type of work to be done and whether the work concerns an above-ground or in-ground pool. In the case of an in-ground pool, county inspectors check the work upon completion to ensure that it has been completed according to code. Typically, in-ground pools require extensive work from an excavator, and therefore will change the look and usability of a property. Furthermore, pool pumps require special electrical lines and hookups. If the pool is heated, it can also require the installation of new gas lines. All of these additional utility lines are considered capital improvements to the property, as well as the addition of the pool itself.
  
  

Capital Improvements

• A capital improvement is an addition on a property of a permanent structure, or a major improvement of or addition to an existing structure. Furthermore, the improvement must be one that increases the property's use and enjoyment, as well as add to its overall value. A new structure on a property (like a garage) is typically considered a capital improvement, as is the installation of a new heating system or the addition of a lake. Some states, like New York, consider an in-ground swimming pool a capital improvement, but not all states do. Furthermore, New York state refines the definition to distinguish between work on an in-ground pool that is a capital improvement as opposed to a major repair or installation.
  
  

Property Taxes

• Most counties calculate their property tax assessments as a percentage of the property's fair market value. The fair market value is a dollar amount estimate done by a licensed property appraiser, and it represents what a potential buyer should be willing to pay for the property. The property is valued by looking not only at its size and geographic location, but also its condition, features and specific capital improvements that have been done on it.
  
  When a homeowner applies for any kind of building permit in New York state for a capital improvement on a property, the county assessor's office is notified, and the property's value will be reassessed automatically upon completion of the work. Certain home repairs (replacing fence boards, for example) can also positively affect a property's fair market value, and in turn, can increase the property's tax assessment amount, but only at the time of the property's regularly scheduled reassessment, which is every three to five years in most counties..
  
  

New York State and In-Ground Swimming Pools

• In New York state, in order for work on an in-ground pool to be considered a capital improvement, the installation of the pool must be either an "original installation" or "complete replacement" of the pool's liner or water heater. A major repair of the liner or water heater, for instance, would not count as a capital improvement and therefore would not likely increase the homeowner's property taxes. But the installation of a completely new liner or heating system would, in fact, increase the property taxes.