Property Tax Reduction (seriously)

As you might know, property taxes are "ad valorem" taxes. Ad valorem is Latin for "according to the value." As you also know, thanks to the golden handcuffs of Prop 13, many longtime owners of California real estate are paying property taxes that have little or nothing to do with the current valorem of their property. Thanks to a 2% cap on annual property tax increases, many Californians have watched the market value of their homes rise much faster and higher than the assessed value. Until now...

For the first time in a long time, some recent home buyers are seeing the assessed value of their homes outpace the market value. In fact, in some areas, they're going in opposite directions. Fortunately, there is a provision, called Prop 8, which allows these recent home buyers to appeal the assessed value of their home if they believe that it is inaccurate. Check out this article in Sunday's Chronicle for more details. Even if it doesn't affect you, you may know someone who could benefit from this information. Pass it on.