Top Real Estate Articles

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

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

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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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