Reply from the Assessor: You Can Challenge Your Property's Value!
Well, I’m always the first to admit that I’m wrong… Actually I was given misinformation by a former manager, and I want to make sure that you, my loyal readers, have the correct information.
I posted a piece on Saturday entitled “Why you should never ask for a property tax reassessment”, and I need to completely change my position and state the facts (direct from the Assessor’s office).
The whole point of Propostion 13 is to protect the taxpayers base year
value, regardless of whether or not a reduction is granted due to a decline
in value (Propostion 8 reduction). Once a Prop. 8 reduction is granted, the
Assessor is required by law to annually review the property and enroll the
lesser of the market value or the factored base year value. When the market
value exceeds the factored base year value, then the assessor is no longer
obligated to review the propertyMichael Jine
Assessor/Recorder – Real Property Div.
Michael.Jine@SFGOV.ORG
What Michael is saying here (I emailed him for clarification, as he was using terms that the average person wouldn’t understand), is that they are only obligated/willing to review a reduction in property taxes until the time that the property hits its original value again, at which time they leave it alone (Prop. 13) indefinitely.
I helped a client go through a request for reassessment a few years ago and it was a VERY long process, requiring attendance at no fewer than two meetings with the assessor’s office. If our market does change to such an extent that your taxable values drop, just make sure you are doing something that is worth your time.
Your real estate agent can help you determine if your property has dropped in value below what you originally paid, although unless you purchased in 2005, you won’t see that happen without an earthquake, and even if you bought in 2005 you likely won’t see it happen…
