The Veridian Blog

With so many homeowners across the state suffering from depreciating values, is it possible to reduce property tax obligations which are based on value?

Proposition 13, well known for its limits on increases in property tax assessment, is also valuable knowledge for homeowners in a down market. It is important to note that Prop 13 puts a 2% ceiling on annual increased assessments but no floor on reductions. Therefore, via Proposition 8 (Section 51), a property owner can seek an immediate reduction in assessed value if they believe the market value has declined less than its taxable value on the county assessor’s books (the little yellow notice we receive every year). The tax cut would be temporary, but the savings would be permanent.

In a number of counties, property owners may not even have to apply to receive a tax reduction! Many assessors are being proactive, automatically reevaluating those homes that were purchased from 2004-07, at the height of the housing bubble. If your client did not get a reduction notice and you believe their property has declined significantly in value, you should recommend that they contact the county assessor to request a reduction. A good rule of thumb is, if you believe your home today would sell for less than the value reflected on your tax bill, you should apply for a reduction.

For more information on tax assessment relief, see http://www.scctax.org/portal/site/asr/agencyarticle?path=%252Fv7%252FAssessor%252C%2520Office%2520of%2520the%2520%2528ELO%2529&contentId=1460bb3166b34010VgnVCMP2200049dc4a92____