Local Tax Assessor Panel Updates Realtors On Lowering Taxes
LOCAL GOVERNMENT, SHASTA COUNTY, TIPS FOR SELLERS
April 3rd, 2009
Leslie Morgan, Shasta County Tax Assessor, brought several members of her staff to discuss the impact the declining real estate market has had on property values. Appraisers have taken up the task of reviewing thousands of real estate transactions dating back to 2003 to determine if a lower assessment is in order. A lower assessment results in a lower tax bill. Homes, businesses, investment and commercial properties are all being reevaluated if they were purchased after 2002.
Proposition 8 (not the gay marriage initiative) requires county assessors review the assessments once a year to determine if the assessed value is reflective of current market value. The rules regulating how and when a reassessment is conducted are complex. Staff recommends property owners wait until July before requesting a review of their property value. Those properties determined to need a reassessment will be notified by mail. If your property has been overlooked, call the assessors office and make a formal request for assessment review.
One challenge discussed in conducting the appraisals is the lack of comparable sales data due to the slow real estate market. Leslie made it clear their is no easy way to adjust property values in mass due to the wide variety of properties we have in Shasta County. Even when prices were soaring upward, the rate of appreciation varied from one area to another within the county.
Last year the 15 staff appraisers reviewed roughly 5000 transactions and lowered values on about 10% of them. Staff expects to review 30,000 property transactions going back as far as 2003. Each appraisal cycle begins on the January 1 property tax lien date. The appraisers must complete their property reassessments by June 30th which marks the end of the county and state fiscal year. The appraisers determine the property value on the lien date, not the current date or the date the appraisal is requested.
Prop 13 fixes the base property value at the time of purchase which can only be adjusted upward by a maximum of 2%/year regardless of how much the value actually increases in a given year. Prop 8 requires the assessor review and lower the assessed value if property values decline below the current assessed value. They can then ignore the limits Prop 13 places on upward value reassessments when property prices escalate. Someone that is granted relief in the way of a lower assessed value and corresponding decrease in taxes can expect the assessor to raise the value when market prices recover.
Contact the assessors office with any questions at 225-3600.
530-224-6767 or 530-941-7492
BRAD GARBUTT
REALTOR/BROKER ASSOCIATE
REAL ESTATE PROFESSIONALS GMAC
QUARTER CENTURY LOCAL REAL ESTATE EXPERIENCE
Brad, I talked with another Broker at our meeting here in Dallas that has a very good idea about this very subject. Let’s talk Monday when i get back ..maybe even by phone
I was wondering about this – do you have any suggestions? I’ve done some research but haven’t been getting very far. Looking for some guidance I guess…