In Sacramento County, about 450,000 homeowners will see an increase in assessed value on their secured property tax bills this year. This is a result of the improved residential real estate market.
By law the assessed values on the 2013-14 annual secured property tax bills are based either on their Proposition 13 value or market value as of January 1, 2013. Numerous homeowners may be surprised that their tax bills will be more than 2 percent higher than last year’s.
During the housing downturn property values were adjusted by the county to reflect the trend of the market. That resulted in homeowners seeing their property tax bills cut in half as they lost equity. Once the market began to rebound over the past year, the county increased the assessed values representing the higher market values.
Adjustments in assessed value provided in California tax law is also referred to as Proposition 8 Decline in Value adjustments.
The Assessor’s Office continues to track current market trends and reviews assessed values as of January 1, 2014 to prepare for the 2014-15 tax roll. These tax bills are mailed only once a year, but property owners may pay their bills in two installments. The first payment must be received or postmarked by 5 p.m. December 10th and the second received or postmarked no later than 5 p.m. April 10th, 2014.
Is this good news or bad news for the real estate market? What do you think?
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