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Property Tax Reduction for Decline-In-Value of Real Estate
Under California's Proposition 8 (no, not that Prop 8 -- this Prop 8 was passed in 1978) you may be entitled to a temporary reduction in assessed value if your home suffers a decline-in-value. A decline-in-value occurs when the current market value of your property is less than the current assessed value as of January 1.
Why does this matter? Because if you paid, say, $1,000,000 for a home but it is currently only worth $700,000, you are paying property taxes on the assessed value of $1Million (amounting to $12,500 per year) instead of on it's current value of $700,000 (the annual property tax would be $8750 on a home with an assessed value of $700,000). The savings with a reassessment would amount to $3250.
Here is the url for the FAQ's with links to the forms:
http://assessor.lacounty.gov/extranet/Guides/prop8.aspx
You will need to copy and paste it into your browser. We can help you find the relevant comparable properties if you find yourself in this situation.
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