If you own a home in California, chances are the assessed value of your property just dropped.
Last year marked the first time most counties saw property tax rolls drop since voters approved Proposition 13 in 1978. That’s because the market value of many properties dropped below the assessed value. In such cases Proposition 8 – a tax measure passed as a companion to Proposition 13 – requires assessors to temporarily lower the taxable value of properties until the market value climbs again.
Market values have continued to plummet, and as a result, most county assessors have continued to lower the taxable value of properties in their region.
This year, there is a second factor at work as well. Under state law, counties are allowed to raise property taxes by up to 2 percent a year as long as the overall cost of goods and services is rising – in other words, during periods of inflation. In a time of deflation – when the costs of goods and services are falling – they are required to lower property taxes.
For the first time since 1978, that scenario is playing out. So even homeowners whose property is still worth more than when they bought it will see a quarter percent decrease from last year in its assessed value.
The new property tax information comes weeks after counties and cities passed their fiscal year 2010-11 budgets. The question now: How well did local governments do in projecting property tax revenue when they passed those spending plans?
Homeowners should see the impact of the newly assessed values in their October tax bills. But not everyone will see a decrease in what they owe, said Ron Thomsen, president of the California Assessors’ Association.
That’s because many residents are in areas with special assessments or levies that will increase this year. Also, the figures are based on the value of a property as of Jan. 1. This means any drop in market value since that date won’t be reflected.
Owners who want to see the assessed value of their property can visit their county assessor’s website. Many counties will conduct informal reviews if property owners dispute the assessed value. Owners can file an appeal until the end of November.
If you want to appeal for lower taxes County Properties will do a complimentary CMA report for your property to send in with the appeal.
Please contact us at www.CountyProperties.net or 619-540-5811 or you may send an email at [email protected]
More questions we can help you, at County Properties, 24 years of brokerage experience, trust and a Member of the local Better Business Bureau! We offer free counseling in real estate regarding; home values and information on options of selling vs. Foreclosure.
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