| FREQUENTLY ASKED QUESTIONS |
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| Why does my assessed value continue to rise while house prices are declining? |
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| What is Proposition 13? |
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| What is Proposition 8? |
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| Am I eligible for an appeal? |
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| How much can I save on my property taxes? |
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| How does the appeal process work? |
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| For what period is the appeal valid? |
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| If my assessed value is reduced, how long will it last? |
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| What is the fee for your services? |
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| Can I do this myself? |
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| Why does my assessed value continue to rise while house prices are declining? |
| Under Prop 13, your base year property value may be increased by 2% per year, an amount intended to compensate for inflation. Historically, unless there have been extreme circumstances, this increase is applied uniformly regardless of the actual fair market value of the property. |
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| What is Proposition13? |
Prop 13, passed in 1978, amended the state constitution so that the yearly taxable value of real property in California must be the lower of either:
- the property’s base year value (established when you purchase your home) adjusted for inflation
- the property’s fair market value on January 1 for the applicable tax year
Real property typically increases year-over-year, except in down markets such as today’s. Proposition 8 was passed to address temporary declines in value. |
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| What is Proposition 8? |
| In 1978, California voters passed Prop 8, a constitutional amendment that allows a temporary reduction in assessed value when a property 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. |
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| Am I eligible for an appeal? |
| Homes that were purchased at the top of the market, from 2005 – 2007, are most likely assessed at a higher value than today’s market value. These homeowners are eligible to appeal this assessment under Proposition 8. |
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| How much can I save on my property taxes? |
Our tax savings calculator will calculate an estimated annual savings based on your estimated assessed and current market values of your home. |
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| How does the appeal process work? |
| Depending on the volume of cases being heard, the appeal process can be lengthy. The assessment appeal period is from July 2nd and November 30 (September 15 for certain counties) of the year that is being appealed. Once the appeal is filed, working with the County Assessors Office, we provide documentation for our claims and attend all hearings in your behalf, typically in the spring of the following year. You will be notified by the County Assessor’s Office as to the amount of your refund when the hearing process is complete. |
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| For what period is the appeal valid? |
The appeal applies to your 2007 assessment and the property taxes paid in December 2007 and April 2008. If a reduction is granted with the appeal, you will receive a refund for your overpayment in 2007.
The appeal applies to your 2008 assessment and the tax bill that will be issued in October, 2008. You will need to pay your bill as issued and if a reduction is granted with the appeal, you will receive a refund the following year.
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| If my assessed value is reduced, how long will it last? |
| Proposition 8 reassessments are not permanent, but last for at least a year. Property values are reassessed on January 1 of the following year and the assessed value may increase or decrease depending on the market value of your property at that time. It is likely, however, that in a stable to declining market that the assessor will hold the lower for subsequent years until the market starts to show signs of recovery. |
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| What is the fee for your services? |
| You pay nothing until your appeal has been heard, decided on and your overpayment refunded. At that point, our fee for services is simply a percentage of the reduction in taxes. |
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| Can I do this myself? |
| Yes, you can file the appeal on your own behalf. Click here for a 16 page guide published by the California State Board of Equalization. |
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