The Daily Breeze reported last week that Los Angeles County Assessor Rick Auerbach will reassess as many as 310,000 homes because of the downturn in the real estate market and consequent drop in home values. Numbers in the county have dropped 12.7 percent between February 2007 and last month, according to a new report from the California Association of Realtors. Over the same time period, the drop in South Bay home prices stood at 7 percent.
Homes purchased between July 1, 2004, and June 30, 2007, are up for automatic reassessment. The Manhattan Beach Confidential real estate blog discusses in detail the thinking behind the move and the span that it will cover. It also features information for those left out of the reassessment bonanza; because after all, a lower reassessment means lower property taxes.
MBWatcher writes: “Anyone can, at any time, file a 'Decline-in-Value Reassessment Application' to seek an adjustment in the assessed value of a property. You don't even need to support your case with data, but it's better if you do. The form asks for you to list 2 recent comparable sales 'that sold as close to January 1, 2008, as possible.'”
As one blog commenter points out, prices will inevitably rise again, and when they do, assessments will rise with them. The tax savings may last only as long as the current downturn, but for many, that's long enough.