Updated: Aug 23
Whether you're a new homeowner or have recently upgraded to a new property, the sight of your property tax bill can be overwhelming and confusing. It's not uncommon to experience a bit of panic when reviewing the amount you owe. But here's some good news: if you've purchased your home within the last 12-24 months, you might be eligible for a property tax reduction.
The reason for this is that the California housing market has seen a sharp correction in the middle to end of 2022 and stabilization in 2023. This means that the market value of many homes has decreased, which in turn leads to a reduction in property taxes through property tax appeal.
Proposition 8, also known as Prop 8, is a property tax assessment law that was passed in California in 1978 as part of Proposition 13. Prop 8 allows for a temporary reduction in property taxes when the assessed value of a property exceeds its current market value.
Under Prop 8, if a property's market value drops below its assessed value, the property owner can request a temporary reduction in their property tax bill. This is because property taxes are based on the assessed value of the property, which is determined by the county assessor's office. If the assessed value is higher than the current market value, the property owner may be overpaying on their property taxes.
Property tax reductions for the base year value can also be contested - our team will determine the best course of action when deciding which type of appeal to file. While base year reduction can be more complex to challenge, a successful contestation will permanently lower the initial year's tax basis, resulting in significant savings over the duration of your ownership.
To take advantage of this opportunity, you will need to file for a property tax reduction with your county assessor's office. The process is relatively simple and can be done by completing an assessment appeal application between July 2nd and November 30th. You will need to documentation that shows the decrease in value of your home such as an appraisal. A property tax appeal company like AOPTA The Property Tax Experts, handles this entire process for homeowners and charge no up front fees. Working with a company like AOPTA ultimately saves time and money for homeowners and stastically save a higher amount in taxes.
AOPTA The Property Tax Experts have relationships with each of the county Assessor's offices and can seek to reduce your property taxes BEFORE the new tax bills are generated by informal review. This means subtancial savings to you the tax payer on the first property tax bill due in December 2023.
This can mean significant savings for new homeowners, especially in the current economic climate.
If you're a new homeowner and your property taxes seem high, be sure to check if you qualify for this program. It's a simple process that can lead to significant savings. You can check with us on your appeal by submitting HERE.
In conclusion, as a new home owner in California, you may have the opportunity to lower your property taxes if you have purchased your home in the last 12 months. This is due to the correction of the housing market, and to take advantage of this opportunity, you will need to file for a property tax reduction with your county assessor's office. This is an easy process that can lead to significant savings for new homeowners.
Check to see if you qualify, click the button below.