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

Related

Taxes 3676571565688999396

Post a Comment

  1. In reading the appeal for reassessment on the county website, it says the new assessment can't be based on foreclosures or short sales.

    My assessed value is $50,000 less than it was last year, so the assessor seems to be taken into account lower property values.

    There is also an homeowners exemption that will save you money (less than $100) if you don't have it already.

    ReplyDelete
  2. Not everyone will be able to benefit from Prop 8, however some will, and it takes very little time and effort to pull comps and fill out the form.

    I pulled comps for a friend at $100,000 and $150,000 less than the value showing on their tax records. This is not due to the foreclosures and short sales, but, but due to the fact that the builder is still building and selling newer homes at considerably reduced prices.

    Potential savings: $1,000-$1,500

    There are also special tax savings for senior citizens, up to $350/year I believe. If anyone has more information on this, please share!

    ReplyDelete
  3. where does it say on the "appeal for reassessment on the county website" that the new assessment cant be based on forclosures or short sales?

    ReplyDelete
  4. Looks like the county is taking any comparable sales (foreclosures, auctions, short sales) to support your claim on your reassessment application.

    ReplyDelete

emo-but-icon

Follow Us














































Popular

Recent

Comments

Subscribe Via E-mail

Have the latest articles and announcements on Menifee 24/7 delivered to your e-mail address.
Email Format
item