'Extreme Makeover' upgrade increases woman's property tax bill

A New York City woman whose small home was made over by "Extreme Makeover: Home Edition" faces higher property taxes based on $125,000 in improvements.

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Lucy Ali's two-story house was renovated for an episode that first aired last October and was repeated last Sunday, which boosted its value from $287,000 to $412,000, the New York Post reported Thursday.

Sam Miller, assistant commissioner for the New York City Dept. of Finance said the tax assessed on the property before the makeover was about $1,500, but couldn't predict what the new rate would be, as city council hasn't yet set the 2005 rates. However, at current rates, the Ali bill would jump to about $2,200.

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However, the report said the various shows attempt to hedge tax problems in advance.

Rocket Science Laboratories, which produces Fox's "Renovate My Family," pays the families a lump sum to cover tax liabilities, while "Extreme Makeover" turns the renovation into a tax "gift" by leasing the property for 14 days.