|Posted by Hundallegalgroup@gmail.com on June 9, 2017 at 1:30 PM|
In California, most property is over-assessed and most property owners pay too much in property taxes. With the constant activity in our neighborhood real estate market, values can fluctuate dramatically; leaving the possibility for our home values to be over-assessed.
Fortunately, there is a solution for homeowners who feel their home’s value has been over-assessed, known as a “Proposition 8 Reduction”. This can result in significant savings.
Proposition 8 Reduction
California Proposition 8, also known as the Post Disaster Taxation Act, was passed statewide in November of 1978. To summarize, Proposition 8 states that when property values in an area decline due to a declining real estate market, property tax assessors are obligated to conduct “decline in value reviews,” to ensure that the tax assessed value of a property is set at a lower rate if the value of the property has declined. Assigning a property a lower value as a result of such review, is knows as a “Proposition 8 Reduction.”
What does this mean for you?
To determine if your home’s value is being over-assessed, evaluate recent comparable neighborhood sales (i.e. square footage, age and features), and determine if your home’s assessed value is greater than the current market in your neighborhood. If it is, you can request a Proposition 8 Reduction though your local county assessor’s office. If approved, your home will receive a temporary reduction (of at least 1 year) in value for property tax purposes, with the potential to save you thousands.
This information does not constitute legal advice or an attorney client relationship*