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Effect of Declining Home Values on Property Taxes

In California, our property taxes are based upon the purchase price of the home (and are adjusted periodically). Each time a home is improved/remodeled, the home value is reassessed for property tax purposes and a new tax amount is due. Tax assessors always seem to be aware when property values increase but what happens when a home declines in value?

My business is real estate marketing; I am not an active agent so I am not clear on many issues agents face. My question for agents is:

Are property taxes ever adjusted for declined home values?

Kelly

Posted by Kelly St. Germain on 02/15/2008 11:43 AM

Comments (7)

california real estate, property taxes, declined home values

7 Comments on Effect of Declining Home Values on Property Taxes

Yes, at least in Florida. However it is not immediate. They do reviews at their pace, like every 3 years or so.

02/15/2008 11:47 AM

by Vickie Nagy, Realtor, Specializing in San Ramon, Danville & the Tri-Valley! (Empire Realty Associates)

You can ask the assessor to lower your basis. There is 1 form to fill out and the time is now.

02/15/2008 11:49 AM

by Adam Brett - Fullerton, California Realtor (RE/MAX NOC)

Thank you Adam. You think the time is now? Don't you think values will drop further?

02/15/2008 11:51 AM

by Kelly St. Germain (Build a Pipeline)

In New Jersey property tax is a radioactive subject. Even if values declined significantly enough to warrant a re-val, doubtful the local governments would adjust accordingly.

02/15/2008 11:52 AM

by Blogger To Be Named Later

Yes - the time periods this is done depends on your state laws and in some states, you can also file an appeal with the assesor if you think the property taxes are too high when you get that bill in the mail. You should be able to find this information out online at your County Assessors office. ---> http://www.co.contra-costa.ca.us/depart/assr/assr.htm

02/15/2008 11:54 AM

by Las Vegas Real Estate - Paul Francis, CRS (Prudential Americana Group)

Kelly,

Property tax values are adjusted down in a declining market, but it usually takes quite a bit of time. More time than when they are adjusted upward. Each jurisdiction has pretty much its own laws regulating that.

02/15/2008 11:59 AM

by Esko Kiuru - Las Vegas NV Mortgage Consultant (Sinifox Financial)

Kelly,

In California, you can ask to appeal your taxes if the property value has gone down. You can go to the county recorders office for the forms.

Michael A. Caruso

02/15/2008 12:40 PM

by Michael Caruso Real Estate Group