How do you stop something from happening when there is no avenue left open to question what is being done to you?

Case in point - after living in our home for almost 18 years my wife and I decided to make an improvement (we can finally afford it) to our home that would not only make us happy but make it (our home) more desireable when we retire and sell it. What we've done is add 144 sq ft to the front (second story) of our home and convert the existing "bonus" room to a master bedroom.

We expected cost overruns because of all the crap the city and state make you do regarding energy saving and "safety" but what we didn't expect was the State sending us a letter within 2 weeks of our plans being submitted asking us how much we were spending so they could raise our taxes accordingly. Yesterday I get a call asking if we were done and if we made any other improvements.

We have not changed the "footprint" of our home, we have not added any new plumbing, no new heating requirement (don't have Air Conditioning) we have added four (4) lights - which the State won't let us use low energy bulbs in. So - why should we expect a tax increase? When questioned about it, the employee that I talked to said we can file for a dispute of reassessment once we get the tax bill. She admitted she had never heard of one being turned back.

What gives ANY State (local or federal) government the right to raise your taxes when you make a small effort to improve your living conditions?