What is Proposition 8?
In 1978, California voters approved Proposition 8, a constitutional amendment to Proposition 13 that allows for a temporary reduction in assessed value when property suffers a “diminished value.” A decline in value occurs when the current market value of a property falls below the current appraised value. A reduction in assessed value results in lower property taxes, saving the property owner often hundreds, if not thousands, of dollars each year. Due to recent housing market conditions, virtually everyone who has purchased a property in California in recent years can take advantage of Proposition 8 and save money by lowering their property taxes.
So with that in mind, if you own a California home that you purchased between 2003 and 2007, your property tax bill is probably too high! Many homeowners are unaware that under Proposition 8 they have the right to file an appeal to have their home reassessed, which more accurately reflects today’s lower property values. Since a homeowner’s property tax bill is based on the assessed value of that home, a reduction in assessed value will result in a reduction in property tax!
Time is running out for California homeowners to apply for a reassessment of their homes for the 2008-2009 fiscal year. There are 58 counties in California and each county has its own deadlines, rules and regulations. Interested homeowners should contact a knowledgeable individual who can research comparable values to help prepare their appeal and, quite possibly, reduce their property taxes. Why pay more taxes than you have to pay? Not to mention, it’s FREE!
