Home > Blogs > Kelly St. Germain > The impact of web 2.0 on real estate agents

Effect of Declining Home Values on Property Taxes

By Kelly St. Germain

Education & Training with Build a Pipeline

February 15, 2008 03:43 AM

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

Comments(6)

Comment

Show All Comments

Sort:

Vickie Nagy

Coldwell Banker Residential Real Estate - Palm Springs, CA

Vickie Jean the Palm Springs Condo Queen

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

Feb 15, 2008 03:47 AM

Adam Brett

The Adam and Eric Group - Fullerton, CA

The Adam and Eric Group, Fullerton's Finest

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

Feb 15, 2008 03:49 AM

Kelly St. Germain

Build a Pipeline - Walnut Creek, CA

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

Feb 15, 2008 03:51 AM

Paul Francis

Francis Group Real Estate - Las Vegas, NV

Las Vegas Real Estate Agent - Summerlin Homes

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

Feb 15, 2008 03:54 AM

Esko Kiuru

Bethesda, MD

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.

Feb 15, 2008 03:59 AM

Michael A. Caruso

Surterre Properties - Laguna Niguel, CA

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

Feb 15, 2008 04:40 AM