You heard me right. If there has been a significant decline in the market value of your property and it is now valued at less than the property's Prop 13 assessed value, then you can enroll your property and have it reviewed a and 're-assessed' (for current tax year purposes) at its new current market value. This could mean saving hundreds or even thousands of dollars on your tax bill!
What is Proposition 8?
Proposition 8 was passed in November of 1978 and amended Proposition 13 to reflect declines in property value. As a result, the Revenue & Taxation Code (sect 51) requires the Assessor to annually enroll the LESSER of either a property's Prop 13 base year value (factored for inflation), OR its market value as of January 1st (taking into account any factors causing a decline in value).
What can Proposition 8 mean to you?
Reductions in assessed value under Prop 8 are temporary reductions which recognize that the current market value of a property has fallen below its current Prop13 assessed value. Once a Prop8 value has been enrolled, a property's value must be reviewed each year until the Prop 13 value is again lower than the current market value and it is then reinstated as the value basis for property taxes. Prop 8 values can vary from year to year as the market fluctuates, but in no case may a value higher than the property's Prop 13 factored value be assigned.
So, how do you request a 'Decline in Value Review'?
Well, the County Assessor prepares the assessment roll. Due to current market conditions, recently purchased properties are being reviewed to determine if they qualified for a decline in value assessment as of January 1, 2008. If you think your property is assessed at a value that is higher than the market value as of January 1, 2008, then you may submit a “2008-09 Request for Decline in Value Review” form with the County Assessor’s Department. The Assessor will review the property assessment as of January 1, 2008, for the 2008-2009 tax years and make adjustments accordingly. You will then be notified by mail after a review has taken place. That's it.
Now, just because you submit a request it does not mean that it will result in the temporary reduction of assessed value. But, if you purchased a home anytime in the last 3-4 years, then this is definitely worth the few minutes it takes to fill out the form and send it in.
Assessor forms are available by contacting your local county assessor's department.
Here are a few links to get you started:
Placer County Assessor's Office: www.placer.ca.gov/Departments/Assessor.aspx
El Dorado County Assessor's Office: www.co.el-dorado.ca.us/assessor/
Sacramento County Assessor's Office: www.assessor.saccounty.net/index.htm
Compliments of :
The Jason Elrod & Associates Team
Keller Williams Realty
Ofc: 916-626-4266
Cel: 916-412-2595
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