Are You Being Over Taxed? Proposition 8 Protects Homeowners
Homeowners need all the help they can get and taxes are no exception.
I reside in the Inland Empire in Riverside County California where values have dropped 50% in some areas. Homes that sold for over $1 million, now are being sold on the foreclosure chopping block for 1/2 that price and this is just in one year.
In Riverside county, 250,000 homes are being reassessed to obtain the true value and to properly asses the taxes. Many of these homes are under water and the county is doing everything they can to comply with the law.
The law which I am referring to is Proposition 8;
In 1978, California voters passed Proposition 8, a constitutional amendment to Proposition 13 that allows a temporary reduction in assessed value when property suffers a “decline in value.”
The county assessor uses the purchase price to determine a property’s assessed value and calculates how much property tax to charge the owner.
A decline in value occurs when the current market value of a property drops below the current assessed value.
This can be huge for California homeowners in in lowering property taxes thus saving the property owner often hundreds, if not thousands, of dollars each year.
Due to recent housing market conditions, virtually everyone that purchased property in California within the past few years can take advantage of Prop 8 and save money by lowering their property taxes.
If you suspect that you are paying more than you have to in property taxes, you should get educated and fight back by using the law.
Popularity: 1% [?]
May 14th, 2008 at 1:52 pm
To Whom This May be able to help,
I have recently submitted an reassesed form/statement to the county of San Bernardino, in waiting for an answer, I was wondering would I be entitled to a refund for back taxes paid when property values have been dropping for a least a year? I’ve purchased my home in 2005 and got into one of those interest only loans, which I was able to have fixed at the same intest rate as the interest only. Sounds good but since we were behind in property taxes, this company paid the back taxes and tack it on our monthly note at a rate of $2000 more a month. So I ask to extend payment from 1 year to 3 years, but this only lower the rate by $1000 dollars. As I calulated this at one thousand dollars a month for 3 years comes out to about thiry six thousands for a twelve thousand dollar repay. Now the mortgage company has sold my loan to another company which is (just the last one) service provider not a lending company, but I know a lending company must hold the deed. How do I find the lending company to modify this loan? Please e-mail me if you can help and/or if you want to know the service company. Sign, Please HELP James
May 14th, 2008 at 3:53 pm
[...] Are You Being Over Taxed? Proposition 8 Protects Homeowners [...]
May 14th, 2008 at 4:05 pm
Los Angeles county is voluntarily doing this also. From website:
“Typically, an application is required to initiate a review of your property’s value by the Assessor. However, in 2008 the Los Angeles County Assessor’s Office will be proactive in reviewing those single-family homes and condominiums that were purchased between July 1, 2004 and June 30, 2007. We will look at sales of comparable properties that sold near the lien date, January 1, 2008. If the market value is less than the assessed value indicated on your 2007-08 tax bill, the assessed value will be reduced accordingly. An application will not be necessary.”
Beware of scammers out there who say they will work with the county for you for a fee of course.
Also from http://www.lacountypropertytax.com:
“We are aware of at least one private company that did a mass mailing to property owners offering their services to pursue a reduction in their property taxes. Specifically, they are seeking to file an assessment appeal on the property owner’s behalf. While there is no initial fee charged for the filing of an appeal, if a reduction is granted, this particular company will receive 45% of the amount of the tax savings for the next two years. We expect other private companies to offer similar services for a fee or a percentage of any tax savings.
Solicitations of this type may not be illegal, but property owners should be aware that the Assessor’s Office provides a simple filing process for a reduction in their property taxes at no charge.”
May 14th, 2008 at 4:06 pm
James Lewis,
Go to http://www.loansafe.org you may be able to get some of your questions answered there.
Craig
May 14th, 2008 at 5:03 pm
[...] Are You Being Over Taxed? Proposition 8 Protects Homeowners [...]
May 14th, 2008 at 6:19 pm
FYI
Looks like San Bernardino is requiring you to submit application for consideration. http://www.sbcounty.gov/assessor/Decline.asp
May 16th, 2008 at 9:31 am
great info everyone.
this issue needs to be addressed and fast!