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Wednesday, October 15, 2008

Proposition 8: Decline in Value Tax Reassessment

The Los Angeles Business Journal recently published an article reporting median home prices in Los Angeles County have fallen to $380,000 from $580,000 back in September 2007. Experts conclude the cause of the dramatic slide is due to the rising tide of distressed properties. Many of these properties were snatched up despite the current credit crunch. Case in point: within the last 3-months, Playa Vista has seen 7 out of the 26 homes (27%) sold identified as distressed properties (ie. Short Sales and Bank Owned Foreclosures), many of these homes were sold quickly as the properties were listed below current market inventories. Most of these buyers were investors flush with cash and first-time homeowners qualified for federal programs aimed at spurring up the housing market.

So, if you're a homeowner who has seen their property value decline - there is relief to help you through this difficult time. Proposition 8 can help you reduce your property tax liability. This amendment, passed by California voters in 1978 allows temporary reduction in your assessed tax value. Here are the steps in getting your property tax reduced:



Proposition 8 FAQ (Frequently Asked Questions):

  1. What are the eligibility requirements?
    The market value of your property on January 1 is currently less than its current assessed value.

    The Reassessment Application must be filed with the Assessor between January 1 and December 31 for the fiscal year beginning on July 1. An application is VALID if December 31 falls on Saturday, Sunday, or legal holiday if either filed or mailed and postmarked by the next business day.


  2. Where do I appeal if I disagree with the Assessor's findings?
    You must file your appeal between July 2 and November 30 for your annual tax bill with the Assessment Appeals Board.


  3. Do other properties besides single family residences qualify?
    Yes, all real property qualifies.


  4. How long will my reduced assessed value last?
    Proposition 8 reassessments are not permanent, but last at least one year. Depending on the market value of your property on January 1 of each subsequent year, the assessed value may decrease or increase. Your assessed value will never increase more than the trended base value. Please keep in mind that base year values suspended by Proposition 8 reassessment values continue to increase by an annual inflation factor of no more than 2% per year.


  5. What is the Los Angeles County Office of the Assessor's web address?
    http://assessor.lacounty.gov/

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