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As the question states, we're considering converting our unused attic crawl space (over the living and dining area) of a split level house into vaulted ceilings. We plan to obtain permits for the work and understands the ramifications to cooling and heating requirements. All things remaining constant, will a vaulted ceiling increase property taxes? This is in tonh.
No. You're not increasing the square footage of living space.
You may require a permit if you have to do any structural work to reinforce the roof when removing your ceiling and collar ties.
Every cape or Levit house on the island ever built has the "attic" turned into bedrooms.
Nobody says diddly. That's creating additional living space which should be taxed but you never see it listed on the tax roll unless some jackass is dopey enough to report it. Of the hundreds or possibly thousands of capes I've seen I think everyone legally is still listed as 2 bedrooms. The only exceptions have been true dormered out capes. So, what you are doing is definitely fine. I think.
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