California Proposition 8 Property Tax Reduction and Tax Assessment Review Process.
Did you know that most property in California is over-assessed, and that most property owners pay too much in property taxes. If you own your home, it's likely you're paying too much in property taxes. The National Taxpayers Union estimates that 60 % of taxable property in the United States is over-assessed! Despite the declining values we are experiencing today, most people don't appeal their property taxes because they simply don't know how.
Proposition 8 Overview
State law (Proposition 8, Temporary Reduction of Assessed Value For Property Tax Purposes, passed in 1979) allows property values to be reduced if there is a decline in market values below the current assessed value.
Who is affected?
Property values have declined significantly over the last 3-Years. If you purchased your home between the years 2004 - 2006, your assessed value is probably much higher then the present market value.
How much can I save?
Properties in Santa Barbara County may have declined as much as $150,000 - $200,000, which represents a substantial negative decline. Based on the current Proposition 13 Tax Rates, if your home has not been reassessed in the last several years you could typically save from hundreds to even thousands of dollars each year. Your actual savings will depend upon the current assessed value, tax rate, and the prevailing market value, which can be best determined from a complete Real Estate Appraisal.
Will the Santa Barbara Assessor's Office lower my taxes?
As a result of Proposition 8 and Section 51 of the California Revenue and Taxation Code, all County Assessor’s in California are required to review and consider requests for value reassessment with proper evidence, and then they are required to reduce taxes correspondingly. A properly documented and supported assessment review form will ensure timely processing and acceptance.
How long will my taxes stay reduced?
Any Proposition 8 tax reduction is considered temporary, although some tax appeal reductions in our county have lasted for over 10+ years. As a minimum, your reduced tax rate will last one year. Realistically, based upon current market conditions and forecasts, the reductions will probably last for several years. Your assessment value and taxes will eventually increase back to the original Proposition 13 rules when the Assessor’s Office decides to reassess your area after the market values have increased. Your taxes will simply revert back to the original Proposition 13 amount upon reassessment.
Although no one has a crystal ball, based upon the current market and forecasts it may be several years before values actually return to the pre-2004 values.
Why should I bother?
Property values are declining, but the Proposition 8 laws can help you save significantly on your next property tax bill. Our clients can typically save from hundreds to thousands on their next Santa Barbara County property tax bill. You can pay only $350.00 today, and then save thousands for years to come.
Don’t delay, take advantage of this declining market before the deadline or values start climbing back up again by calling us for all the details. We can explain the Proposition 8 Tax Assessment Review process and our special program details. You have everything to gain, and nothing to lose by switching to a new lower Prop 8 assessed value.
For more information about Professional Appraisal Associates, visit us at our Website at: ProfessionalAppraisalAssociates.com or feel free to call us at (805) 688-5033.