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. That should amount to $2.60 less in taxes per $100,000 of assessed value, according to the State Board of Equalization.
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.
For more information or to receive a free market evaluation of your property in Orange County or Riverside visit our website at www.TheAragoneTeam.com or call us at 714-366-6117