Despite the numerous Pasadena foreclosures one thing that many homeowners are seeing is an increase in property taxes. Majority of homeowners have a hard time understanding how property taxes can increase amid home values decreasing and foreclosure rates being on the rise. Luckily, Proposition 8 is available to help homeowners who are dealing with increasing property taxes among decreasing home values.
Image via Wikipedia
Explanation of Proposition 8
Proposition 8 was passed back in 1978 by the voters of California in order to protect California homeowners from property taxes increasing even when home values are decreasing. Proposition 8 allows all homeowners in the state of California to apply for property tax relief, but only if there home’s value has had a dramatic decrease in its current market value. Proposition 8 is not a permanent fix, but does give approved homeowners a temporary reduction in their property taxes based on the taxable value of their home. In accordance with Proposition 8 if there is a huge difference between the market value and the assessed value of the home, with the market value being lower, the county assessor is supposed to review the property and use the lesser of the two values in determining property taxes. With Proposition 8, if the market value is lower the assessed value will be adjusted and your property taxes should be reduced.
Applying for Proposition 8
If you are interested in applying for a reduction in your property taxes based on Proposition 8 you will need to contact your county’s assessor to find out the exact application procedures. In most counties though you will need to fill out an application that shows the two different values, but some counties will allow you to apply with a informal letter requesting a reduction based on the lower value of your home. In other counties, all you have to do is call the county assessor’s office to request a review. With how bad the current housing market is most county assessors are already actively reviewing the assessed values of houses to determine if they qualify. To find out more about your county’s requirements you can visit the website http://www.boe.ca.gov/proptaxes/assessors.htm.
Are Any Fees Required?
Unfortunately, there are people out there who will try to take advantage of other people’s hardships, including charging fees for a free service. There are no fees involved with receiving a review of your property value, no matter what anybody says. Receiving a review of your property value is required by law so the service is performed by the county that you live in for free. If you start receiving any type of offers from private companies offering you a review of your property simply throw the offers away because you don’t need them.
Is the Reduction in Value Permanent?
The reduction in value under Proposition 8 is not a permanent reduction. The property is reviewed every year to determine its value. Even though it is being assessed every year and the value can increase every year on its lien date. One thing that you need to be aware of when it comes to the value increasing is that the increase can be more than two percent because the Proposition 8 determined value is not the base year value. The maximum two percent increase under Proposition 13 comes back into play once the market value of your house has reached its base year value, unless there is a change in ownership or new construction. Under Proposition 8, your property taxes can increase drastically all at once if the market suddenly turns around, but only until the value reaches the original base value.
Information Needed for a Review
When you are requesting a review, you will want need to have information that supports your opinion that the market value of your home is lower than the current assessed value. Gathering together information on the sale of property in your neighborhood that is comparable to your property, also known as comps, are the best documents you can have, but you want to have at least two that sold as close to January 1st as possible, but no later than March 31st. When gathering comps, you want to find homes that have similar features to yours because the comps are used to help determine the value of your home. Information on comps in your neighborhood can be found in a variety of places, including your local Real Estate Agent, county assessor’s website, or numerous websites.
Disputing the Findings
If you don’t agree with the findings of the county assessor, you can dispute the results by filing a formal appeal. You will need to file the appeal with the County Board of Equalization or the County Assessment Appeals Board because they are independent from the county assessor’s office and are used solely for resolving the differences between the different opinions. The appeal must be filed on an Application for Changed Assessment and must be filed between July 2 and September 15 or November 30, depending on the county you live in. They must also be filed in the fiscal year that you are disputing. To find out the filing deadline for your county visit http://www.boe.ca.gov/proptaxes/pdf/filingperiods.pdf.
Image via Wikipedia Explanation of Proposition 8
Proposition 8 was passed back in 1978 by the voters of California in order to protect California homeowners from property taxes increasing even when home values are decreasing. Proposition 8 allows all homeowners in the state of California to apply for property tax relief, but only if there home’s value has had a dramatic decrease in its current market value. Proposition 8 is not a permanent fix, but does give approved homeowners a temporary reduction in their property taxes based on the taxable value of their home. In accordance with Proposition 8 if there is a huge difference between the market value and the assessed value of the home, with the market value being lower, the county assessor is supposed to review the property and use the lesser of the two values in determining property taxes. With Proposition 8, if the market value is lower the assessed value will be adjusted and your property taxes should be reduced.
Applying for Proposition 8
If you are interested in applying for a reduction in your property taxes based on Proposition 8 you will need to contact your county’s assessor to find out the exact application procedures. In most counties though you will need to fill out an application that shows the two different values, but some counties will allow you to apply with a informal letter requesting a reduction based on the lower value of your home. In other counties, all you have to do is call the county assessor’s office to request a review. With how bad the current housing market is most county assessors are already actively reviewing the assessed values of houses to determine if they qualify. To find out more about your county’s requirements you can visit the website http://www.boe.ca.gov/proptaxes/assessors.htm.
Are Any Fees Required?
Unfortunately, there are people out there who will try to take advantage of other people’s hardships, including charging fees for a free service. There are no fees involved with receiving a review of your property value, no matter what anybody says. Receiving a review of your property value is required by law so the service is performed by the county that you live in for free. If you start receiving any type of offers from private companies offering you a review of your property simply throw the offers away because you don’t need them.
Is the Reduction in Value Permanent?
The reduction in value under Proposition 8 is not a permanent reduction. The property is reviewed every year to determine its value. Even though it is being assessed every year and the value can increase every year on its lien date. One thing that you need to be aware of when it comes to the value increasing is that the increase can be more than two percent because the Proposition 8 determined value is not the base year value. The maximum two percent increase under Proposition 13 comes back into play once the market value of your house has reached its base year value, unless there is a change in ownership or new construction. Under Proposition 8, your property taxes can increase drastically all at once if the market suddenly turns around, but only until the value reaches the original base value.
Information Needed for a Review
When you are requesting a review, you will want need to have information that supports your opinion that the market value of your home is lower than the current assessed value. Gathering together information on the sale of property in your neighborhood that is comparable to your property, also known as comps, are the best documents you can have, but you want to have at least two that sold as close to January 1st as possible, but no later than March 31st. When gathering comps, you want to find homes that have similar features to yours because the comps are used to help determine the value of your home. Information on comps in your neighborhood can be found in a variety of places, including your local Real Estate Agent, county assessor’s website, or numerous websites.
Disputing the Findings
If you don’t agree with the findings of the county assessor, you can dispute the results by filing a formal appeal. You will need to file the appeal with the County Board of Equalization or the County Assessment Appeals Board because they are independent from the county assessor’s office and are used solely for resolving the differences between the different opinions. The appeal must be filed on an Application for Changed Assessment and must be filed between July 2 and September 15 or November 30, depending on the county you live in. They must also be filed in the fiscal year that you are disputing. To find out the filing deadline for your county visit http://www.boe.ca.gov/proptaxes/pdf/filingperiods.pdf.
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