Which of the following best describes 'additions' in property assessment?

The correct answer refers to 'additions' in property assessment as physical changes that affect capped value. In the context of property assessment, 'additions' typically refers to enhancements or expansions made to a property, such as the construction of new rooms, garages, or other structures. These physical modifications can increase the property's assessed value and are significant because they impact how property taxes are calculated based on the capped value under Michigan law.

Understanding how physical changes translate into assessed value is crucial for assessors, as these changes not only reflect the investment made in the property but also can influence the property’s marketability and valuation in future assessments. This is particularly important in jurisdictions with a capped value system, where the effect of these physical additions can determine how much the property tax assessment can rise in subsequent years.

The other options discuss aspects that are related to property assessment but do not specifically capture the essence of 'additions' as defined in this context. New development projects, changes in ownership, and increases in market demand do influence property values and assessments, but they do not inherently involve the direct physical modifications to the property itself, which is at the heart of the concept of 'additions'.