Finished another project with a MrCool Mini-split (Page 4/4)
CoolBlue87GT JUN 14, 12:53 AM
Wow, I googled Tenn Taxing, found the following.

If the addition of air conditioning transforms the outbuilding into a more usable and valuable space, it's likely to be reflected in a higher property appraisal and thus, higher taxes.

Livability and Classification:
If the outbuilding is considered a "living space" (e.g., a guest house or studio) due to the addition of HVAC, it will likely be assessed as such, increasing its taxable value.

Building Permits:
If the installation requires a building permit, it's a strong indicator that the improvement will be assessed.

Tennessee Property Tax Assessment:
Tennessee assesses property based on its fair market value, which can be affected by improvements like adding air conditioning to an outbuilding.


...... I would suggest after they assessed the value, not pulling a permit for ac, as DIY mini splits & window AC units do not require a permit, add ac, and enjoy. Your outbuilding is not considered a "living space" , it's a shop. I'd fight that.

[This message has been edited by CoolBlue87GT (edited 06-14-2025).]

blackrams JUN 14, 01:21 PM

quote
Originally posted by CoolBlue87GT:

Wow, I googled Tenn Taxing, found the following.

If the addition of air conditioning transforms the outbuilding into a more usable and valuable space, it's likely to be reflected in a higher property appraisal and thus, higher taxes.

Livability and Classification:
If the outbuilding is considered a "living space" (e.g., a guest house or studio) due to the addition of HVAC, it will likely be assessed as such, increasing its taxable value.

Building Permits:
If the installation requires a building permit, it's a strong indicator that the improvement will be assessed.

Tennessee Property Tax Assessment:
Tennessee assesses property based on its fair market value, which can be affected by improvements like adding air conditioning to an outbuilding.


...... I would suggest after they assessed the value, not pulling a permit for ac, as DIY mini splits & window AC units do not require a permit, add ac, and enjoy. Your outbuilding is not considered a "living space" , it's a shop. I'd fight that.




Thanks for the research. Considering my options.

1. No cooling installation, already have installed two large ceiling fans.
2. Put up more ceiling fans to keep air moving. Or install a couple of Squirrel Cage fans (already have one, the kind found in HVAC home systems),
3. Window Units in the windows (easily seen sticking out from the street). Apparently, the tax guy only does a drive by per his statements.
4. Install new windows beneath the lean-to roof on the back side of the shop and installed window units there. Not able to see unless you're inside the shop on in the partially open lean-to.

I like option 4 most but, I'm close to my shop budget limit and don't wish to draw from the promised upgrades the Spousal Unit wants. Guess we'll see.

The living space thing is interesting. Having hosted several Valkyrie motorcycle rides/events, it's not unusual for a few cots to get set up in my shops or garage due to having more guests than beds. And several motorcycles. There won't be any water supplied to my shop although there will be a small frig for drinks there.

Reference fighting the improvement tax, I suspect the tax isn't that much but I doubt I'd fight it. I don't see it as worth the fight for whatever time I have left on this rock we call home after retiring.

Rams
CoolBlue87GT JUN 15, 09:25 PM

quote
Originally posted by blackrams:

I like option 4 most but, I'm close to my shop budget limit and don't wish to draw from the promised upgrades the Spousal Unit wants. Guess we'll see.

Reference fighting the improvement tax, I suspect the tax isn't that much but I doubt I'd fight it. I don't see it as worth the fight for whatever time I have left on this rock we call home after retiring.



Sounds like a good plan, good luck on the build.

An interesting thing happened the other night with our house main AC system, at midnight we discovered it was very warm inside, the outside unit was not running correctly, the fan was on, but the compressor was not kicking on. I called the after hours number for our AC company to contact me in the morning.

I cranked the Lanai Mini split on, set it for 60, opened the sliding doors to the living room, and let it run overnight. I set up two portable fans to blow the cooler air into the living room. I put the main ac into fan circulate mode, in-order to get some of the cooler air into the bedrooms, it actually helped a bit.

When the AC repair tech came at 8 am, said it was simply a capacitor that had gone bad, he replaced it & had it back running in ten minutes. The service call & cap was only 40 dollars. (it's good to have a service plan set up)
blackrams JUN 15, 10:07 PM

quote
Originally posted by CoolBlue87GT:

When the AC repair tech came at 8 am, said it was simply a capacitor that had gone bad, he replaced it & had it back running in ten minutes. The service call & cap was only 40 dollars. (it's good to have a service plan set up)



Agreed. When we bought this home in TN, there were a few concerns and the seller wasn't willing to fix anything our home inspector and I found needed fixing but, once a price was agreed to, my last demand was the seller had to pay for a Home Warranty of my choosing up to a certain price. They agreed and we bought the property.

Since that day, the Home Warranty company has had to install a new HVAC unit, make numerous repairs of the brand new refrigerator the seller had installed and a few other small things. So far, the Home Warranty Company had paid out about $10K. Yes, it's good to have a plan. BTW, we're buying a second year's worth of coverage this month. I see it a cheap investment/insurance. Might not do it again after this year but, one never knows.

Rams