[quote=Blogstar]Should they add the %2(or any percent) in seriously falling markets year after year?
What does prop 13 have to address assessments in falling markets. What does the State Board of Equalization have to say about the practice of raising assessments in falling markets? These are some questions that came up after looking at my tax bills while going through the appeal.
Yes, it was funny to belittle my property to the assessor’s appraiser…My wife and I were laughing about it.[/quote]
The prop 13 limits come into play after the market starts rising again.
Lets say you buy a house for $500k in 2005
Lets say you appeal your assessed value and get it assessed down to 350k. All is good. You’re paying less because you’re paying market.
Then the market improves and your house is now worth $450k. My understanding is that you’ll be taxed at 450k. Which is more than a 2% jump from the $350k… But it’s less than the $500k you purchased at.
As the market increases the assessment goes up with the market (not the 2% cap) until it’s back to the purchase price.
Then after that – as the market goes up – it’s limited to the 2% annual increase.
Does that make sense? That’s the way it was explained to me.
