Under CA Prop. 13 can they raise the value?

Question

Most of the RE market in California has been in a decline for years. However, my recent property tax bill for 2012 indicates a 2% increase in value. As of the end of 2011 there were only indications of a decline, not an increase. Under CA Prop. 13 can they raise the assessed value, even when there has been no indication of rising values? Have you had an increase for the most recent year & will you do anything about it?

loanmasterone · Accepted Answer

You might would want to check the percentage of the increase. The increase under the Howard Jarvis tax revolt would allow an increase of approximately 2% per year, unless there was a change in ownership of the property.

If the property declined in value this is a different matter. You would have to challenge the increase through the county in which you reside, you would need to call the county and obtain the necessary form to challenge the tax increase when the value of the property has declined.

You might be required to pay for and present an appraisal to prove your claim.

By calling the county tax assessor they would provide you with the proper procedure in order challenge this tax increase.

I hope this has been of some benefit to you, good luck.

"FIGHT ON"

linkus86 · Answer

No.   Under Proposition 13, the 1975-1976 fiscal year serves as the original base year used in determining the assessment for real property. Thereafter, annual increases to the base year value are limited to the inflation rate, as measured by the California Consumer Price Index, or two percent, whichever is less 

While there may be indication of decline state wide, your neighborhood could be growing in value.  It happens.  But if you can prove that your neighborhood values are in decline you do have the option to challenge the assessment  with county government.  Most of the time the county concedes if you have valid proof.

Under CA Prop. 13 can they raise the value?

2 Answers