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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

FEB

2008

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

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

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

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.

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

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.

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

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