The values of single-family residences and condominiums throughout the State have been declining. While the declines in Los Angeles County have not been as dramatic as those in other parts of the State, property values have dropped in nearly every area of Los Angeles County.
How does this impact your property taxes? In 1978, California voters passed a constitutional amendment that allows a temporary reduction in assessed value when a property suffers a "decline-in-value." A decline-in-value occurs when the current market value of your property is less than the assessed value as of January 1. The assessed value is the value shown on your most recent property tax bill.
Typically, an application is required to initiate a review of your property’s value by the Assessor. However, in 2008 the Los Angeles County Assessor’s Office began doing a proactive review of single-family residences and condominiums based on an analysis of market trends in Los Angeles County. For 2008, single-family residences and condominiums purchased between July 1, 2004 and June 30, 2007 were reviewed. For 2009, the review was expanded to include single-family residences and condominiums purchased between July 1, 2003 and June 30, 2008. In some particularly hard hit areas of the county, the review included properties purchased as far back as 2000.
The 2009 proactive review included 473,000 properties, resulting in lower assessments on 333,000 single-family residences and condos. The average reduction in assessed value was about $120,000, amounting to an average property tax savings of approximately $1,300.
Beginning March 1, 2010, you can check this website to find out if your property automatically qualifies for a 2010 decline-in-value review. Property owners' whose property is included in the review will be notified of the results in writing by June 2010. If your property is not included in the proactive review or you own property other than a single-family residence or condo, a Decline-In-Value Review Application will be required for a review by the Assessor’s Office. An application is recommended if you believe the assessed value of the property shown on the 2009-10 tax bill is more than the fair market value as of January 1, 2010. Decline-in-Value Review Applications are accepted June 1 through November 30.
The 2010 Decline-in-Value Review Application is simple to complete and will be available online and at the Assessor's District Offices June 1, 2010. We will review all valid applications submitted during the open filing period, and if a reduction is warranted, the property's taxable value will be reduced. Please note that there is no charge for a decline-in-value review.
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