The assessment of real property in California is guided by Proposition 13, which took effect in 1978. Upon a change in ownership or completion of construction, a base year value is assigned to a property. Thereafter, the annual increase in assessed value is determined by the California Consumer Price Index – but capped at 2%. Using Consumer Price Index numbers recently released by the government, the State Board of Equalization announced on November 30, 2009 that – for the first time since Proposition 13 was implemented – statutes dictate a deflationary economy to result in a negative .237 percent adjustment to the assessed value of real property as of January 1, 2010. The California State Board of Equalization notified County Assessors on December 14, 2009 that a negative .237 percent adjustment should be used for the 2010 real property assessment roll.
For property owners whose historical assessed value is below current market values, there will be a decline in the base property tax. However, for those property owners whose assessed value likely exceeds market value, an appeal of the assessment will be necessary.
The negative adjustment for calculation of the 2010 tax year real property assessments will place further stress on the budgets of cities and counties in California.
For more information, please contact either Alan Schultz at (415) 593-9005 or email@example.com, Ed Trudersheim at (858) 430-0373 or firstname.lastname@example.org, or Randy Burns at (415) 593-9005 or email@example.com.