Top Real Estate Articles

Why Should I Bother Understanding Property Taxes

Jun 26, 2009 Real Estate Properties

Property Taxes are the highest expense after debt service (mortgage) for taxpayers and knowing property taxes and assessments can only benefit you as a taxpayer. The average homeowners who acquired a home in the past six years pays about $7,000 per year in property taxes which equals to almost $600 per month. After ten years the quantity of property taxes paid cumulatively will be more than $70,000! If that taxpayer can lower their assessment where they save $2,000 per year over the next ten years, you will save $20,000! Being a knowledgeable homeowners about the three aspects of property taxes, appraisal, assessment and government process, enables you to save thousands in the long run.

Knowing how to calculate your market value as a taxpayer will empower you not only in property taxes but in all facets of handling your home. These various aspects include refinancing, selling and buying, when you know and understand the fundamentals of all real estate transactions you will be empowered to make sure you are in the best possible position no matter what you are doing regarding your house. The Little Black Book gives you the tools to know how to determine your market value which is a tool you can use over and over again no matter what youre handling with your house. Additionally, the Little Black Book gives you the insight into assessment practice so that you can make sure you are paying what is fair for your home.

Comprehending assessments is very empowering, you wont feel afraid to deal with the Office of the Assessor or Tax Collector because you will understand their internal processes and consequently will know how to assist them, assist you. Property Taxes are pretty simple once you remove the fear and replace it with knowledge. Reducing your property taxes is just the first step towards being a well educated taxpayer and a homeowner who wont be afraid of any government agency or lending institution (bank). Gaining the knowledge and insight of an insider, of a former assessor will empower you in all aspects of your home ownership and you will have tools you will be able to use for every home you ever own.

Taking advantage of the tools available to you and making yourself knowledgeable puts you in the drivers seat. You will know how to take charge and make sure that the market value of your home is being appraised properly and make sure that you are being treated fairly and dealing with competent people whether you are refinancing your home or reducing your property taxes.

About the Author: Valerie Faltas, Property Tax Expert has been involved in all facets of real estate for over ten years including assessments, appraisals, estates and trusts, investing and much more. She is a Certified Property Tax Appraiser, Licensed Residential Appraiser and a member of the International Association of Assessment Officers. As a real estate investor and adviser she is well versed in all aspects of real estate. To contact Valerie Faltas go to her website: www.propertytaxlittleblackbook.com.

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Relationship Between Real Estate Market Values, Interest Rates and Property Taxes

Jun 19, 2009 Real Estate Properties

Market value is the most critical factor in any avenue of real estate; everything is tied to market value and market values are constantly fluctuating. Understanding real estate equates to knowing how to calculate market value, basically understand how to conduct your own appraisal. The irony is that appraisal is not widely known even among real estate experts. Appraisal is not hard, it is not complex and the crucial element to everything in real estate. Whether you are purchasing a house, refinancing, reducing your property taxes, investing, etc. everything is in relation to market value and the funny thing is that real estate market values are constantly changing. Real Estate values are always changing so the key is: knowing appraisal and how market values are calculated. When you understand appraisal and how market values are determined you will have the tools needed to work with your financial institutions on loans and your Assessor on property taxes. The California Little Black Book and the National Little Black Book walk you through the appraisal process step-by-step so that you know how to determine your market value and this is a tool you can use over and over again. Once you have the tool, the Little Black Book, you can appraise an infinite number of homes.

There is an inverse relationship between real estate market values and the interest rates. When housing values are high normally the interest rates are down as opposed to when the real estate market is down the interest rates are high. In the 1990s the real estate market was down and the interest rates were in the double digits. I can recall when 11% was a great mortgage interest rate.

Housing values started climbing in 2001 and the interest rates decreased as the housing market continued to increase. What the banks make in principal they off set with lowering the interest rates and inversely when the market values are lower this is off set by increasing interest rates. The bank is always making their money one way or another and this helps control inflation.

Real Estate markets like the one today, where the housing prices are decreasing and the mortgage rates are low as a result of the Fed attempting to stimulate the economy, inflation increases. The economy functions on a balance and when that balance is disturbed it creates inflation. The banks may be doing better if they could get more in interest on the funds loaned out. This is one of the causes of the mortgage and housing crisis. Increasing interest rates may stimulate spending indirectly by giving the lending institutions more on their money, banks will be more inclined to loan out money.

Housing values and interest rates off set each other, so when they are both down it seems to be a good real estate market, and with all of the financial institutions that are going through bankruptcies and shut downs we are seeing the results. Something has to give and the banks are suffering and consequently the we are suffering also since not as much money is being loaned out.

An inverse relationship with real estate values and interest rates begs the question: Is it better to purchase in a high housing market with low interest rates or a low housing market with high mortgage rates? My personal opinion on this is that if you buy in a high market with low rates theres no where to go from there. Your interest rate is low and so it doesnt make sense to refinance and so you are stuck with that huge principal balance. However, if you buy a house in the midst of a low housing market with a high interest rate then your principal balance is low and you can refinance when the interest rates go down. Your interest rate can change; your principal balance doesnt unless you modify your loan. Generally, speaking though your principal balance is a constant and your interest rate is a variable.

The greatest cost you will have with your property is always your mortgage and the next highest cost normally is your assessment. The great news is that a low housing market allows for a lower assessment which means lower property taxes. Whether you have bought in a high housing market or a low one you can ensure you are paying the least amount possible in property taxes! In almost every state property taxes are tied to market values so educating yourself on appraisal and the property tax system will give you the most power in terms of lowering your property taxes. Education on how to understand market value is the key to every door pertaining to your residence including reducing your property taxes (assessment).

About the Author: Valerie Faltas, Property Tax Expert has been involved in all facets of real estate for over ten years including assessments, appraisals, estates and trusts, investing and much more. She is a Certified Property Tax Appraiser, Licensed Residential Appraiser and a member of the International Association of Assessment Officers. As a real estate investor and advisor she is well versed in all aspects of real estate. To contact Valerie Faltas go to her website: www.propertytaxlittleblackbook.com.

Tags: a, appraisal, assessment, assessment appeals, e, economic stimulation, f, finance, h, home;improvement, housing, i, Interest Rates, m, Market Values, Mortgage Rate, n, o, p, Property Tax, r, Real Estate, Real Estate Properties, real;estate, Recession, s

Why Doesn’t the Assessor Care That You’re Overpaying Property Taxes?

Jun 16, 2009 Real Estate Properties

Numerous homeowners know they’re paying too much in property taxes and the Assessor doesnt seem to care! The injustice comes from the fact that most property owners know their assessed values are above than their current market values and subsequently are overpaying property taxes. When working with the Office of the Assessor and looking for assistance it seems like none is given especially with the nature of this issue. Every homeowner needs to understand that the assistance the Assessor’s Office can give is limited. The Assessor is inundated in this real estate market since all they hear from are frustrated homeowners. During this real estate market and recession the entire country has gotten slammed with terrible news and most people are tightening up and unfortunately lashing out.

So, all of you homeowners out there, take a deep breath because the good news is that you can do something about lowering your property taxes. The key to making sure you are not overpaying property taxes, the key to lowering your property taxes as much as possible is understanding. When you understand the critical and relevant data you need to reduce your property tax value and ultimately your property taxes you will ensure that based on your state law you arent over paying a nickel!

The Assessor’s Office does not seem to care because they are inundated with work and inundated with angry, frustrated, yelling property owners. The Assessor’s Office doesnt have the enough man power to care. Dont take it personally, the Assessor is NOT out to get you. The Assessor will assist you as much as they can. Understand that with the work load there is not the time to deal with your feelings and break down the laws, exemptions, statutes that are relevant to your specific assessment.

You are the only one who can truly charge, because no one knows your property and your neighborhood better than you do. The information you need to lower your assessment is what data pertaining to your home is relevant specifically to reduce your property taxes. If you have the knowledge needed to lower your property taxes and you hand that information to the Assessor’s Office Im sure that your assessment will be lowered! Taking control helps your own situation and you also assist the Assessor assist you! They key to reducing your property taxes is to understand the process and know what data you need to provide to the Assessor. The process is very simple.

Taxpayers often do not want to touch their assessments with a ten foot pole and truly there is nothing to fear. Property Tax law in each state, including California (where we like to make things complicated), is extremely easy. They key is knowing three aspects of property taxes: property tax law, appraisal and assessment practice. Take it from the property tax expert who worked in all sides of the process and spent years being educated on it. It is simple. Assessments are easy. The keys to reducing your property taxes are in your hand, time to put them in ignition, turn on the car and drive. All information sold by Property Tax Little Black Book, LLC is guaranteed and if you arent satisfied with it for any reason, you will be refunded completely.

About the Author: Valerie Faltas, Property Tax Expert has been involved in all facets of real estate for over ten years including assessments, appraisals, estates and trusts, investing and much more. She is a Certified Property Tax Appraiser, Licensed Residential Appraiser and a member of the International Association of Assessment Officers. As a real estate investor and adviser she is well versed in all aspects of real estate. To contact Valerie Faltas go to her website: www.propertytaxlittleblackbook.com

Tags: a, appraisal, assessment, assessment practice, assessor, f, finance, h, home;improvement, housing market, l, lower property taxes, mortgage crisis, p, property tax information, Property Tax Law, r, Real Estate, Real Estate Properties, real;estate, reduce property taxes, taxes

Paying Too Much Property Tax This May Be The Reason Why

Jun 4, 2009 Real Estate Properties

In addition to your basic property taxes, when your property tax bill seems unusually high especially during this housing crisis you probably have a Special and/or Direct Assessment on your residence. Depending on the area your house is located, there may be charges needed pay for voter-approved obligation bonds or other indebtedness, special assessments, or direct levies. For example, a Direct Assessment could be applied to your home if the voters in your community decide to establish a sewage system in a city where the were using homes use septic tanks. The direct assessment is applied pay for the sweage system to the neighborhood.

Normally, the direct assessment would be applied over a period of several years so the voters are not overwhelmed by the cost of the new improvement to their community. Special and Direct Assessments have a specific purpose, a specific improvement to a city and will only last as long as was determined to cover the cost of the community improvement. Normally, such indebtedness results in a small fraction of a percent increase in the tax rate.

Direct assessments are placed on your property tax bill by the county tax collector for the local levying agency or district, not on behalf of the assessor, auditor-controller, and/or the county tax collector departments. Keep in mind, that Special and Direct Assessments are voter approved taxes so if there is any issue with it, it did not come from the Office of the Assessor. To find out more or to dispute a special assessment on your property, contact the levying district. Normally this information is on your property tax bill.

However, you cannot refuse to pay the property tax bill that contains the direct levy amount, even if the direct levy amount is under dispute. Always keep in mind that no matter how much you disagree with what is on your property tax bill it is always better to pay the bill and get refunded later than to have a lien against on your property. The processes to delete a delinquent property tax bill and all of the fines associated with that need numerous signatures and explanations within the Assessor’s Office and Tax Collector’s Office and can be complicated. So keep it simple, always pay your bill, any exception to this would be an extreme case.

About the Author: Valerie Faltas, Property Tax Expert has been involved in all facets of real estate for over ten years including assessments, appraisals, estates and trusts, investing and much more. She is a Certified Property Tax Appraiser, Licensed Residential Appraiser and a member of the International Association of Assessment Officers. As a real estate investor and advisor she is well versed in all aspects of real estate. To contact Valerie Faltas go to her website: www.propertytaxlittleblackbook.com.

Tags: assessment, assessor, d, direct assessment, f, finance, h, home;improvement, housing crisis, i, l, Levy, lower property tax, o, p, Property Assessment, r, Real Estate, Real Estate Properties, real;estate, reduce property taxes, Special Assessment

Reduce Mellow-Roos Property Taxes

Jun 3, 2009 Real Estate Properties

The Howard Jarvis Administration was the driving force in implementing Proposition 13 which put a cap on propety taxes in the state of California. As a result, of Proposition 13 California Residents had to discover different ways to finance government community facilities in their communities like streets, schools, parks, etc. The Mello-Roos Community Facilities Act of 1982 was implemented by the California legislature, the Act created Community Facilities Districts (CFDs) to be established as a way of obtaining this crucial neighborhood funding.

The amount of Mellow-Roos Property Taxes varies from one CFD to another. Typically, an adopted formula that applies to the size of the residence (square footage or parcel size) is utilized to ascertain the amount of particular assessment. Normally, the special property tax and assessments do not go above 1% to 1.5% of the market value of new homes. Additionally, the complete amount of all annual property tax usually does not go above 2% to 2.5% of the homes taxable property base value. So if you are able to lower your taxable base value or in other words, your propety tax you will save a significant amount of money if you have Mellow-Roos Taxes on your house since of the increased percentage in property taxes you pay.

The average homeowner in most urban areas in California in todays real estate market has lost in excess of $200,000 in market value and at the normal rate of 1.25% in property taxes they will save $2,500 per year for every year they own their house! However, that same homeowner at a 2% property tax rate because of Mellow-Roos taxes will save $4,000 per year in property taxes! Learning to PERMANENTLY lower your taxable base value in California is the key to saving thousands over the course of your home ownership which is disclosed in the California Little Black Book.

Generally Mellow-Roos Property Taxes are applicable to recently built communities like sizeable Planned Unit Developments (PUD) where there have been numerous houses built at once and the property taxes are necessary to establish city services. Ive seen Planned Unit Developments that had more than 4,000 houses built! So, the county and city municipalities need to find funds to establish the roads, sewage systems, schools, recreation centers, parks and so much more. Before purchasing a home with Mellow-Roos property taxes you will be informed in the beginning negotiation stages of acquiring the house and while in escrow that these property taxes apply. You won’t be blind sighted by Mellow-Roos Taxes, it is required that you are notified prior to purchasing.

About the Author: Valerie Faltas, Property Tax Expert has been involved in all facets of real estate for over ten years including assessments, appraisals, estates and trusts, investing and much more. She is a Certified Property Tax Appraiser, Licensed Residential Appraiser and a member of the International Association of Assessment Officers. As a real estate investor and advisor she is well versed in all aspects of real estate. To contact Valerie Faltas go to her website: www.propertytaxlittleblackbook.com.

Tags: assessment, Buying A Home, declining real estate market, housing crisis, lower property tax, m, mellow-roos taxes, mortgage crisis, planned unit development, Property Taxes, pud, Real Estate, Real Estate Properties, Real Estate Sales, real;estate, reduce property tax

Understanding Prop 13 Assessment

May 31, 2009 Real Estate Properties

California only allows two things that initiate a re-assessment: transfer in ownership (also called a transfer) and new construction. A transfer in ownership is when any part of the ownership interest in the home has changed whether money changed hands or not. The Assessorss Office will review the transfer to see if its re-assessable. If it’s an assessable change in ownership, the data is sent to the appraisal staff to give or review the value and modify the base value appropriately. A change in ownership that isn’t assessable must have fallen within the parameters of an approved exemption. A transfer into a revocable trust or an inter-spousal transfer that are both examples of exemptions allowed in California articulated in our Inherited Property and Exemptions Guide detailed in the California Little Black Book.

When a transfer is exempt, the ONLY way the Assessorss Office knows this is through forms and/or applications which are recorded along with the deed or later requested by the Office of the Assessor to confirm an exempt transfer. So when there is no exemption, the transfer in ownership is considered assessable per Prop 13. Which means if you do not apply for the exemption, submit a form or offer accepted documentation for an exemption, the transfer is considered assessable automatically. The Office of the Assessor is a mass assessment organization and unless you tell them what you need preferably through forms and documents they wont know what may or may not apply to your change in ownership.

The other trigger for re-assessment based on Prop 13 is new construction. The Assessors’s Office is told by the city or county building and safety offices. The city or building and safety give the information about issued permits to the Office of the Assessor for property tax purposes. Keep in mind, your city receives some of your property tax dollars so though its primarily a state tax your local municipality benefits from it. The permits are given to the real property appraisers to update the building record and change the base value if warranted based on Prop 13. Normally, it takes the Assessors’s Office a fair amount of time to get to since field work is necessary to find out what was done to your house and then a valuation process. If there is a demo, your property taxes will likely be reduced, if there is an addition there is likely going to be an go up. So, if you demolish a pool your property taxes will decrease and if you add a pool, your property taxes will increase. Construction varies from home to home and it will be reviewed based on the value that was added or taken away. This is clearly explained in the California Little Black Book with examples and scenarios. When was employed by the Assessor I assessed countless homes where various types of construction was done and would be happy to answer any questions you may have pertaining to this!

Like new construction there will be a re-assessment of a property if the use of it changes. For example if a complex of co-ops is converted into condominiums the Assessor will reassess the value of each unit because the change affects the market value of each unit. However, generally in California there are two events that trigger re-assessment based on Prop 13: change in ownership or new construction.

About the Author: Valerie Faltas, Property Tax Expert has been involved in all facets of real estate for over ten years including assessments, appraisals, estates and trusts, investing and much more. She is a Certified Property Tax Appraiser, Licensed Residential Appraiser and a member of the International Association of Assessment Officers. As a real estate investor and advisor she is well versed in all aspects of real estate. To contact Valerie Faltas go to her website: www.propertytaxlittleblackbook.com.

Tags: assessment, c, California Property Tax, change in ownership, contruction, e, f, finance, h, Home Construction, home;improvement, l, lower property tax, o, p, prop 13, Property Assessment, Property Tax, r, Real Estate, Real Estate Properties, real;estate, reduce property tax

Tax Collector, Assessor and Auditor Controller Compose the Property Tax Branch of the County.

May 30, 2009 Real Estate Properties

These three offices handle various facets of your property taxes. Some counties merge these offices because they are not as large and dont have a necessity for three separate offices. All of the work begins with the Assessor, first in determining what is assessable and then handling the value of that re-assessment and all of these determinations are made by your state law.

Assessments go through a process within the Office of the Assessor, to determine the value for that assessable event or assessment year. At the end of the fiscal year all of the values for the year are sent to the Auditor-Controller to apply the correct tax rate (percentage) to each property which varies in each tax rate area and determines the actual dollar amount you owe. The tax rate is set based on the area you live in and the local taxes applied to your local community in addition to the state levied taxes. The tax rate is usually a percentage of the value determined by the Assessors Office.

Also, if in a tax rate area has a special assessment or a direct assessment it is added by the Auditor-Controller. Finally the data is sent to the Tax Collector who distributes the bills, collects the money and deposits it in the County Treasury. These three departments compse the property tax branch of your county government and each handle their responsibilities independently.

For example, if you found out you had a lien or delinquent taxes on your property, you need to go to the Tax Collector to pay them and have the lien removed and the records brought up to date. However, if you had an issue with the amount of property taxes or the value in which your property taxes are based on you would contact the Assessor, because that is what the Assessor is responsible for. For example, if you had a value issue, you would go to your Assessor, and how to do this is detailed in both the California Little Black Book and also the National Little Black Book.

Once the value is adjusted by the Office of the Assessor it would get sent to the Auditor-Controller who would adjust the actual dollar amount you owe, and then forward that to the Tax Collector’s Office where you would receive your adjusted bill. Normally, the two offices that handle public service are the Office of the Assessor and the Tax Collector’s Office, the Auditor-Controller is the silent partner. Normally, any public service issue that needs to be resolved with the Auditor-Controller’s Office is requested by the Assessors Office.

This is an intricate process and at times values are adjusted by the Assessor and the actual bills sent out by the Tax Collector are not corrected. This occurs when the Auditor-Controller’s Office, for whatever reason has not corrected the right bill or there was a procedural mistake. Always keep in mind all of these departments are mass processing organizations and do the best they can and it is your responsibility to make sure that your values are accurate. When this happens a special request needs to be sent by the Assessors Office to have the value corrected and then it is forwarded to the Tax Collector who will issue a new bill. Remember all problems can and will be fixed with a little bit of effort, understanding and patience.

About the Author: Valerie Faltas, Property Tax Expert has been involved in all facets of real estate for over ten years including assessments, appraisals, estates and trusts, investing and much more. She is a Certified Property Tax Appraiser, Licensed Residential Appraiser and a member of the International Association of Assessment Officers. As a real estate investor and advisor she is well versed in all aspects of real estate. To contact Valerie Faltas go to her website: www.propertytaxlittleblackbook.com

Tags: a, assessment, assessment appeals, assessor, Auditor Controller, business;finance, finance, home, house, lower property taxes, Property Assessment, property tax expert, Property Taxes, Real Estate, Real Estate Properties, real;estate, saving money, tax collector, valerie faltas

Why Should I Be Agreeable With The Assessor’s Office?

May 30, 2009 Real Estate Properties

The simple answer to this question is: they are processing your assessment! Be nice!

Mistakes are often made because there is so much work and so many properties to appraise! Always remember the Office of the Assessor is a mass assessment entity and they do not necessarily have the time or the man power to ensure every single value is perfect. If there is a mistake|an error in your building information or a value that is far above than what it should be, it is not intentional nor is it personal.

The personnel of the Assessor’s Office can make your life very simple and they can also make it frustrating. If you are frustrating to work with, no one is going to want to assist you, even if the error is the Assessors fault. The employees do not enjoy being treated as people who are out to get you, since they really arent. The staff are unaffected by your taxes, records and values, so be kind. Be a person they want to assist so that you will get the maximum advantage of what may be available to you. Remember, even if the person you are speaking with can’t help you, chances are they know the person who can and have influence with that individual also.

When I worked for the Office of the Assessor I had front doors slammed in my face, I had homeowners and business owners yell at me. I was also treated as if I had no comprehension of the law or even appraisal and I was definitely not apt to assist those who dealt with me that way. It was my part ofposition to assist them, to be the civil servant I was paid to be. After working for years in a place where most of the taxpayers resented my position and the job I did it was very taxing. Remember, the Assessor is a person and the staff of the Assessor are people and they are tired of being yelled at! They get that all day long every day and most of the employees work there for years.

Picture what its like to work in an environment for years where your customers hate you! Its not fun! Dont be one more taxpayer they add to that list! The employees you deal with who work for the Office of the Assessor, handle and influence your assessment, always keep that in mind! They have worked with thousands of taxpayers and can read you like a book, so be nice and patient and understand they are not out to get you. The staff of the Office of the Assessor, are doing their jobs. Being difficult will not get you what you are looking for. You may be surprised at what being patient will get you.

About the Author: Valerie Faltas, Property Tax Expert worked in assessments for years, is a Certified Property Tax Appraiser, Licensed Residential Appraiser and a member of the International Association of Assessment Officers. As a real estate investor and advisor she is well versed in all aspects of real estate. To contact Valerie Faltas go to her website: www.propertytaxlittleblackbook.com

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About the Property Tax Expert

May 29, 2009 Real Estate Properties

May of 2003 I applied to be a Real Estate Appraiser Trainee with the Los Angeles County Assessor as one of 900 applicants for 25 positions. Part of being a trainee included an 18 month probation period and a 12 month training program with including classroom education, several exams, field training in all facets of real estate appraisal, property tax law and the processes in place within the Assessor’s Office. If I failed any one of my exams or received a bad review by my trainer I would have been kicked out and let go.

At the end of the year long training I took an exam with the State Board of Equalization to be Certified as a Property Tax Appraiser. I was promoted from Trainee to Appraiser. Independently, I chose to become a licensed Residential Appraiser through the Office of Real Estate Appraisers meaning I could do private appraisals also, ones used by banks. I personally purchased my first home at the age of 23, my second at the age of 24, my third at the age of 25. While I was learning appraisal and assessments I was also buying, selling and repairing homes so I saw all aspects of real estate. Additionally, I was the administrator of a family estate while in college so I had already had a background in trusts and estates and my experience working for the Assessor and in real estate had shed light on what I had done years earlier with my family.

Being employed by the Assessor is considered to be impressive given the nature of the job. Determining values, the public paid property taxes based on the amounts I determined. I affected over 6,000 properties in Los Angeles County while I worked for Assessor’s Office|Assessor|Office of the Assessor. The prestige comes from the nature of the position and the understanding gained through it. There is definitely a blown up sense of power that goes along with the position; if taxpayers really saw the other side and fully understood the law and how it works, the prestige would be gone. The bottom line is always the numbers.

My job changed with the real estate industry: different types of work during different types of markets. I had a great reputation within the Office of the Assessor, was known for being fast, proficient and thorough. I was chosen by higher level management several times to work on different projects and help with other departments within the Office. When I left the Assessor to go to law school (which I dropped out of), months even up to a year after I left, taxpayers would ask for me since I would help them more than others who worked there. Even the clerks in the office would come to me with problems since they knew I would assist them. I had a bright future with the Assessor and would have risen through the ranks had I chosen to stay there.

NATIONALLY: In just about every state in the US property taxes are a percentage of market value. Market value is the critical factor. The greatest issue is that every Assessor’s Office in every county in all states is a massive assessment government entity. They have hundreds of thousands of valuations to complete year after year and usually don’t have enough man power to do the work based on quality instead of quantity. The Assessors exists to serve, to do their jobs to follow the law and to be as fair as they can be. Frequently values aren’t what they should be simply because they don’t have the time or the man power to be more thorough.

CALIFORNIA: California Property Taxes are unique and very different than the rest of the US. When the real estate market started to really decline homeowners started calling and coming in looking for assistance. I was helping homeowners get the temporary tax break called Prop 8 and I knew a much more effective break they could get. I know a way for homeowners in California to get a PERMANENT break in their property taxes. The average taxpayer in an urban area lost over a $250,000 in value which equates to $3,000 PER YEAR in property taxes! Completely legal, just sort of out of the box and it wasn’t okay for me to share. Most who work for the Assessor aren’t aware of this loophole! Day after day, homeowner after taxpayer…I knew a better way. Often they wouldn’t qualify for the temporary break based on the way its written. I felt compelled. I felt compelled to make this understanding known so that I could help taxpayers in a bigger way. So, I left, created the Property Tax Little Black Book.

If a homeowner can get your loan modified to permanently reduce how much you owe the bank for your house why shouldn’t the same apply to your property taxes? The law is ALWAYS on the taxpayer’s side…you just don’t realize it!

While I worked for the Assessor I processed single family home values at 3 or 4 an HOUR… some were higher than they should have been since I didn’t have the time to make sure they were right and some were lower also. Only if the homeowner complained was the assessed value researched. All homeowners need to learn some basic appraisal and assessment to ensure they are aren’t overpaying property taxes. Understanding is the key. Every homeowner can understand and handle this process to feel in control of what they are being taxed on their house.

The Assessor is afraid the people because the homeowners are the ones who keep them in office. The Assessor’s Office doesn’t want to deal with a disgruntled homeowner!

Bottom line: the Assessor is not out any homeowners. Uderstanding and dispelling fear in times like today. This is the GOOD news about this low real estate market! Its time for taxpayers to save and empower themselves. A low real estate market allows for modified loans and lower property taxes! The real estate market is down and this is how it can assist you! This is one of the numerous reasons this economy is good!

My vision, my goal is to empower the homeowner! No more fear. Fear comes from ignorance and my goal is to educate and ultimately dispel fear. In a time of turbulence and change, it is more true than ever that knowledge is power. - JFK Feel free to contact me! I look forward to hearing from you.

About the author: Valerie Faltas, Property Tax Expert has been involved in all facets of real estate for over ten years including assessments, appraisals, estates and trusts, investing and much more.

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Does Prop 13 Still Apply Today?

May 28, 2009 Real Estate Properties

Current California Property Tax Law does apply today to all property owners in California. Prop 13 was enacted in 1978 to control the amount of property taxes paid by homeowners. Prior to Prop 13 there was no limit on property taxes. The assessed value was based on the changing market value every year and because the market values increased significantly over time in California, the amount of property taxes increased significantly. As the values of the homes increased over time, older folks were being driven out of their homes unable to pay the property tax increases.

Prop 13 was passed to assist seniors on fixed incomes who could not adjust to increasing property taxes. This amendment was initiated by Howard Jarvis was a result of a ballot initiative passed by voters in June of 1978, called People’s Initiative to Limit Property Taxation. Current California Property Tax Law is an amendment to the California State Law and is still a hot topic today because of its limiting nature and the imbalance it has created in terms of how much each taxpayer pays. Taxpayers who bought thirty years ago dont pay nearly as much in property taxes as those who have acquired homes recently and as a result of this many taxpayers feel Prop 13 is unfair and should be repealed.

Current California Property Tax Law applies to all who own property in California even those who have purchased recently. What Prop 13 does today is establish a cap on the amount of property taxes the government can charge you. The initial purchase price of your property, as long it was a market transaction, becomes your base value.

A market transaction means that as long as your purchase price was market value it will be accepted as your taxable base value. If you paid well below market value for your home the Assessor will assess you at market value because that is what California Property Tax Law states. Your assessment is based on market value as of the re-assessable event and if your purchase price was market value the Assessor will accept it as market value. If not, the Assessor will determine a value for you.

Usually, most California Homeowners pay close to 1.25% of their assessed value in property taxes per year. For example if your assessed value is $100,000 you would pay about $1,250 per year in property taxes. The difference between your base value and your assessed value is very simple. Your base value is the value established as of the date of a re-assessable event usually when your purchase your home. The assessed value is the amount you pay taxes on for a designated year since all base values in California have a 0-2% increase per year based on Prop 13 and the Consumer Price Index rates for inflation in a given year.

The base value is the value property taxes are based on and then it increases slightly every year. Generally, most Californians pay about 1.25% of their assessed value in actual property taxes per year. So as your base value increases every year raising your property tax value year to year, accordingly what you pay in property taxes increases. Remember the amount you pay is limited based on State Law. So even if the market sky rockets and your property value increases substantially, your property tax base wont increase along with the market it is limited to the 2% trend based on State Law.

About the author: Valerie Faltas has specialized in Property Taxes for the past 5 years and has produced a free report that exposes the truth about Prop 13 and Prop 8. Check out our FREE California ebook which explains Prop 13 in more depth with examples! Feel free to contact me with any questions you may have! Get your free report on Prop 8 and Prop 13 now. You have full permission to reprint this article provided this box is kept unchanged.

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