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You
May be Eligible for a Temporary Reduction in the Assessed
Value of Your Property
Information
on Decline in Value Reassessments:
It has
been widely reported that the property values of single-family
homes and condominiums throughout most of the State have been
declining. While the declines in Los Angeles County have not
been as dramatic as those in other parts of the State, property
values have dropped in most areas of Los Angeles County.
How
does this impact your property taxes?
In 1978,
California voters passed Proposition 8, a constitutional amendment
that allows a temporary reduction in assessed value when a
property suffers a “decline-in-value.” A decline-in-value
occurs when the current market value of your property is less
than the assessed value as of January 1. The assessed value
is the value shown on your most recent property tax bill.
Typically,
an application is required to initiate a review of your property’s
value by the Assessor. However, in 2008 the Los Angeles County
Assessor’s Office did a proactive review of those single-family
homes and condominiums that were purchased between July 1,
2004 and June 30, 2007. 318,000 properties were reviewed,
resulting in lower assessments on 128,000 homes and condos.
The average reduction in assessed value was about $73,000,
amounting to an average property tax savings of $750. With
the market still declining, the LA County Assessor will again
initiate a review in 2009. The number of properties in this
review may approach 500,000. They will look at sales of comparable
properties that sold near the lien date, January 1, 2009.
If the market value is less than the assessed value as of
January 1, 2009, the assessed value will be reduced accordingly.
According to the LA County Assessor, an application will not
be necessary.
The Assessor’s
office will complete this review by June, 2009 and notify
in writing all those property owners whose property was included
in the review. Decline-In-Value applications are accepted
from January 1, 2009 through December 31, 2009; however, if
you purchased a house or condo in 2002 or later, the Assessor’s
office is urging people to wait to submit their application
until July when results of the proactive review are known.
If you
own property other than a single family residence or condo,
a Decline-In-Value application will be required for a review
by the Assessor’s Office. An application is recommended
if you believe the assessed value of the property shown on
the 2008-09 tax bill is more than the fair market value as
of January 1, 2009.
Alert:
If you have received a solicitation from a private company
seeking to lower the assessed value of your property, Click
here for more information.
Click
here for a link to the Decline-in-Value
Reassessment Application (Prop 8).
Click
here for more
information about temporary reduction in the assessed value
of your property.
Source: LA County Tax Assessor
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