When the Covid pandemic hit, there was a lot of uncertainty in the world, especially with the real estate market. We quickly saw home prices began to skyrocket as interest rates fell. Over the next couple years many buyers capitalized on record low interest rates for their record high prices. Once interest rates began to rise, housing prices declined. Many homes that were purchased in the last year or two are now valued for less than what they were purchased for. If you, or someone you know, fall into this category, Prop 8 may help you reduce your property taxes!
As of 1978, Proposition 8 allows the Assessor to temporarily lower the assessed value of a property under certain conditions mandated by the State. The change (reduction) must reflect the market value of the property on the lien date, January 1 of the current year. A reduction of the assessed value is determined by an analysis of sales of similar properties in your neighborhood. This analysis includes sales up to 90 days (Before March 31, 2023) past the lien date as well as property listings. Any reduction under Proposition 8 to the assessed value is automatically reviewed annually to determine if market conditions indicate that the assessed value should be maintained, lowered, or increased. Unless there is a change in ownership or new construction, your assessment can never increase above the base year value plus the appropriate annual cost of living increase allowed by Proposition 13.
The deadline for filing appeals for this year for Proposition 8 reductions is November 30. If you think you may be entitled to a lower property tax rate through Prop 8, contact Arrive Real Estate Group for a free property evaluation. If we agree, we will provide you with a list of market comparables and a copy of the required form to submit to the county for reassessment consideration.