Property tax confusion for houses that sell for much less than what owner paid

[csr_sd]

Hi-

The tax rate does not necessarily decline- in your example it is 1.2%. It will still be 1.2%, the total tax bill will decline as prices decline(e.g 1.2%@300k or 1.2%@600k). That is unless the tax rate declines based on the value of the property (e.g 1.2%@300k; 1.6%@600k). Now it would be great if the tax rate also declined!, but I think it is essentially fixed, no?

cheers

csr_sd

[jpinpb]

When I owned my home and the value went down, I requested the county reassess the value of my house and they lowered my property tax. Of course, when the value of the house went back up, they re-assessed it again higher.

I would think they would assess the value based on other homes in the area, not necessarily what you paid for it, if you got a screaming deal. But in Temecula, since so many places have gone down, I imagine that’s not going to be a big factor and the assessment will be lower, hence so your property tax bill.

[jpinpb]

When I owned my home and the value went down, I requested the county reassess the value of my house and they lowered my property tax. Of course, when the value of the house went back up, they re-assessed it again higher.

I would think they would assess the value based on other homes in the area, not necessarily what you paid for it, if you got a screaming deal. But in Temecula, since so many places have gone down, I imagine that’s not going to be a big factor and the assessment will be lower, hence so your property tax bill.

[jpinpb]

When I owned my home and the value went down, I requested the county reassess the value of my house and they lowered my property tax. Of course, when the value of the house went back up, they re-assessed it again higher.

I would think they would assess the value based on other homes in the area, not necessarily what you paid for it, if you got a screaming deal. But in Temecula, since so many places have gone down, I imagine that’s not going to be a big factor and the assessment will be lower, hence so your property tax bill.

[jpinpb]

When I owned my home and the value went down, I requested the county reassess the value of my house and they lowered my property tax. Of course, when the value of the house went back up, they re-assessed it again higher.

I would think they would assess the value based on other homes in the area, not necessarily what you paid for it, if you got a screaming deal. But in Temecula, since so many places have gone down, I imagine that’s not going to be a big factor and the assessment will be lower, hence so your property tax bill.

[jpinpb]

When I owned my home and the value went down, I requested the county reassess the value of my house and they lowered my property tax. Of course, when the value of the house went back up, they re-assessed it again higher.

I would think they would assess the value based on other homes in the area, not necessarily what you paid for it, if you got a screaming deal. But in Temecula, since so many places have gone down, I imagine that’s not going to be a big factor and the assessment will be lower, hence so your property tax bill.

[barnaby33]

Doesn’t prop 13 require that if the taxes are re-assessed lower that they are recaptured quite quickly? As in no 3% a year maximum increase?

Josh

[barnaby33]

Doesn’t prop 13 require that if the taxes are re-assessed lower that they are recaptured quite quickly? As in no 3% a year maximum increase?

Josh

[barnaby33]

Doesn’t prop 13 require that if the taxes are re-assessed lower that they are recaptured quite quickly? As in no 3% a year maximum increase?

Josh

[barnaby33]

Doesn’t prop 13 require that if the taxes are re-assessed lower that they are recaptured quite quickly? As in no 3% a year maximum increase?

Josh

[barnaby33]

Doesn’t prop 13 require that if the taxes are re-assessed lower that they are recaptured quite quickly? As in no 3% a year maximum increase?

Josh

[jonnycsd]

Typically the assessed value is the purchase price – no guarantee, but this is typical. If value drops within the first year after you buy, you can get a permanent reduction in the assessment from the County.

Additionally, if comps in your area are much lower than what you paid, even if you bought years ago, you can request (and will usually get) a one year reduction in assessed value. You can make this request every year so long as the current market value is less than your current assessed value.

I believe that Prop 13 prevents increases in your initial assessment so long as you are the owner. I do not believe you even have to live in the property for this protection.

County tax receipts are going to follow the market down. Our schools are already in budget trouble now, what about when property tax receiepts are off 20% or 30% from current? THIS IS A MAJOR ISSUE FOR LOCAL GOVERNMENTS ACCROSS SOCAL but does not appear to be on anyone’s radar.

[jonnycsd]

Typically the assessed value is the purchase price – no guarantee, but this is typical. If value drops within the first year after you buy, you can get a permanent reduction in the assessment from the County.

Additionally, if comps in your area are much lower than what you paid, even if you bought years ago, you can request (and will usually get) a one year reduction in assessed value. You can make this request every year so long as the current market value is less than your current assessed value.

I believe that Prop 13 prevents increases in your initial assessment so long as you are the owner. I do not believe you even have to live in the property for this protection.

County tax receipts are going to follow the market down. Our schools are already in budget trouble now, what about when property tax receiepts are off 20% or 30% from current? THIS IS A MAJOR ISSUE FOR LOCAL GOVERNMENTS ACCROSS SOCAL but does not appear to be on anyone’s radar.

[jonnycsd]

Typically the assessed value is the purchase price – no guarantee, but this is typical. If value drops within the first year after you buy, you can get a permanent reduction in the assessment from the County.

Additionally, if comps in your area are much lower than what you paid, even if you bought years ago, you can request (and will usually get) a one year reduction in assessed value. You can make this request every year so long as the current market value is less than your current assessed value.

I believe that Prop 13 prevents increases in your initial assessment so long as you are the owner. I do not believe you even have to live in the property for this protection.

County tax receipts are going to follow the market down. Our schools are already in budget trouble now, what about when property tax receiepts are off 20% or 30% from current? THIS IS A MAJOR ISSUE FOR LOCAL GOVERNMENTS ACCROSS SOCAL but does not appear to be on anyone’s radar.

[jonnycsd]

Typically the assessed value is the purchase price – no guarantee, but this is typical. If value drops within the first year after you buy, you can get a permanent reduction in the assessment from the County.

Additionally, if comps in your area are much lower than what you paid, even if you bought years ago, you can request (and will usually get) a one year reduction in assessed value. You can make this request every year so long as the current market value is less than your current assessed value.

I believe that Prop 13 prevents increases in your initial assessment so long as you are the owner. I do not believe you even have to live in the property for this protection.

County tax receipts are going to follow the market down. Our schools are already in budget trouble now, what about when property tax receiepts are off 20% or 30% from current? THIS IS A MAJOR ISSUE FOR LOCAL GOVERNMENTS ACCROSS SOCAL but does not appear to be on anyone’s radar.

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