Prop 8 May Reduce Your Property Taxes

Cynthia Nemelka Aina, a real estate agent here in Menifee who runs the " Menifee4Rent " website, offers this article about how Pro...

Cynthia Nemelka Aina, a real estate agent here in Menifee who runs the "Menifee4Rent" website, offers this article about how Proposition 8 can help you save on your property taxes...

Save Money on Your Property Taxes – with Prop 8
Cynthia Nemelka Aina, RE/MAX Metro Diamond Realty

As everyone knows, property values have gone down recently, and may decline further because of the sub prime lending crisis. The good news is, that in times like this, Prop 8 may save you money on your property taxes by reducing your tax bill.

With Prop 8, your current year's taxes are limited to the lesser of the current proposition 13 base value OR the current fair market value as of January 1st. Based on the condition of the current market, you may be able to reduce your tax bill.

For example:
Current Prop13 value/ Assessed value on your home - $450,000
Value of your home as of January 1st, 2008 - $400,000
Value difference - $50,000

Annual Tax savings (approx 1% of the value difference) - $500
The tax reduction is only temporary, and when values go back up, you will be reassessed at the higher value. I know that tax season is a few months away, but in some cases the assessor may reject your application and you may want to appeal the assessor's decision.

As part of the application for reassessment you will need some precise details regarding your property and market comparables of homes that have sold in your area, and that's when you turn to your friendly neighborhood Real Estate Agent! There are so many fantastic Realtors here in Menifee Valley that would be more than happy to help, and it only takes us a few minutes, so don't be shy!

For more information, you can download this simple one page form entitled "Decline-in-Value Reassessment Application (Prop. 8)" from the County Assessor/Recorder's website at...

http://riverside.asrclkrec.com/ACR/INassessment.asp#prop8

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