Property taxes headed back up
The black cloud of the
housing collapse had one small silver lining. Many homeowners bought at the top
of the market 2004 through 2007 only to see their home values crash through the
floor in 2007 – 2009. Prices declined 40% across California
Home values stabilized in
2012 and have been increasing steadily, even rapidly ever since. In a process
termed, “value restoration” or recapture,” property assessments may be
increased almost as rapidly as they were reduced. Normally, Prop. 13 limits the
increased valuations to 2% per year, but revenue starved counties may increase
valuations and taxes much more rapidly.
I asked Santa Cruz County
Assessor Sean Saldavia what property tax payers could expect in our county. He replied, ” Over the past six years we
proactively lowered thousands of assessments due to the declining market.
Now that the market is rebounding these reductions will be restored. “
If
your property taxes were not reduced you are still protected by the 2% cap on
increases. Saldavia continued, “Most property owners did not receive a
reduction and therefore will not receive a future increase above the
Proposition 13 annual increase capped at 2% per year. Property owners
that did receive a reduction will have it restored over the upcoming years as
the market rebounds. “
Any increases in property
taxes due to value increases this year (20% +) will not be implemented till next
year according to Saldavia and there will be a notice to each tax payer
affected, explaining the method used to establish value. If you disagree with
your new assessment, there is also an appeals process which is outlined on the
assessor’s web site.
You may access the Assessor’s
web site at http://www.co.santa-cruz.ca.us/asr/ or contact Mr.
Saldavia directly at ASR001@co.santa-cruz.ca.us .
