Many of us are dealing with the fact that our real estate is worth less than it was. Good news! For those of us who own property that is worth less than its current assessed value, we can apply for a temporary tax reduction. In 1978, California voters passed Proposition 8, which allowed for this. All the details can be seen at http://assessor.lacounty.gov. Here’s the press release from the Assessor: pressrelease_5-27-081
Note that we are talking about the assessed value, which you can see on your Annual Property Tax Information Statement at the bottom of the upper portion, not an appraised value or the fact that it might be worth less than what you currently owe on the property. Also, the property value is assessed as of January 1, 2008. Note that the biggest reduction in value in many areas has happened since that time, so the tax reduction may not be nearly as much as you might hope for or imagine. I asked someone who works for the Assessor if we can file again next year for a further decline in value even if we get one this year, and I was told yes. So don’t despair, but you’ll have to be patient, because you may not see much of a reduction until next year.
If you purchased a single family home or condominium between July 1, 2004, and June 30, 2007, you were already evaluated for a tax reduction and were notified in October if you qualified for one. If you don’t agree with the findings, you can appeal. Start the process by calling your local Assessor’s District Office. You have to file an appeal by November 30, so you’d better get on this.
If you purchased your real property before or after those times, or you own something other than a single family home or condo, you can download the Decline-in-Value form from the Assessor’s website, http://assessor.lacounty.gov or from right here: decline-in-value-form. An application can be requested by calling 888-807-2111.  You have until December 31, 2008, to file the form.
To establish the value of your property, you can search on the Assessor’s website, or as a public service, you can contact me and I will help you if I can. Be sure to read the press release on the Assessor’s website, they warn of people who charge hundreds of dollars to help you. Now I’m not going to fill out the form for you—that’s your responsibility, but even the Assessor says it’s really easy.
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