How so? I'll explain...
If you bought a home for $500,000, that's now valued at $350,000, then why should your property tax bill still reflect $500,000!!! In Los Angeles County, where the property tax rate is 1.25% of the home purchase price, you'd be paying $6,250 per year (at $500K) instead of $4370 per year (at $350K), a difference of $1880 per year.
I'm not aware of any county within the state of California that is currently reducing property taxes automatically... Why not? Because it directly affects there bottom line, as property taxes are used in many counties for their operational budgets.
This brings to mind the following questions:
- What are the local authorities are doing about lower property taxes for homes that are no longer valued at their respective purchase prices?
- What incentive do the local authorities have to lower the property taxes at all, as it decreases their operational budgets.
- How will the local authorities determine the new property values for devalued homes?
1 comment:
Hey Lawrance,
I just remebered reading an article about Prop. Taxes in Ventura County. You can request a assesment for your property taxes, and they will come out and reassess. If your property is valued lower, your tax bill will be adjusted. But be prepared to wait as staff is limited and as you can imagine there ha sbeen an influx of requets.
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