[quote=SK in CV]I’m a bit confused by this. I don’t think the OP is requesting a decline in value assessment. I think it’s the inital assessment usually based on the actual price he paid. I do understand how the assessor can argue that a trustee sale is at something other than fair market value or arms length. Not so with a REO. A seller who typically lists the property in MLS. A buyer who makes an offer. Open market negotiaation. (I do know the reality is sometimes a bit different.) I’m not familar with the regulations on this but it does seem unreasonable for a REO sale to not be subject to the identical property tax valuation process as any other traditional sale. Anyone have any insight?[/quote]
I understand what pemeliza is objecting to and why (s)he may have received a larger assessment than purchase price on her supplemental bill nine mos. after purchase. (It’s not due to the 2% per Prop 13 because those bills for FY 10/11 will not begin to be generated until approx. 9/20/10.) The new assessment kicks in upon the filing of the Change of Ownership Stmt. at COE so his/her Supp. Bill is for F/Y 09/10. I’ll call pemeliza a “she” here for illustration purposes only.
She pd. the tax in escrow for the balance of FY 9/10 but it was based upon with seller’s tax bill. She thought she would be due a refund for the amt. she pd. (diff. between the seller’s tax bill and what her portion of the tax bill was, based on her lower purch. price) and instead rec’d a supp. bill (which ate up some or all of her “overpayment” she made in escrow).
Does that make sense??
I was searching various large counties in CA for their practices in this area when I got sidetracked.
I have combed the CA RevTax Code and cannot find a provision which allows a county assessor to reassess upon Change of Ownership (new Base Year Reassessment) on criteria other than sales price. That’s not to say it isn’t there, but I’m bleary-eyed right now.
Since she posted that other nearby REO purchasers were affected as well, it could also be that MH WAS eligible for the DVAP in FY 08/09 so now they are “catching up” in the form of an “escape tax” added to new supplemental bills for the affected parcels.
Pemeliza, could it be that the prev. owner who lost the property to foreclosure had successfully appealed their assessment and was given a lowered assessment (which you pd. tax from in escrow) and thus your new supplemental bill includes a catch-up “escape tax?”
