(submitted by one of our North Coast agents)
Tom Bordonaro, the County Assessor for San Luis Obispo County, spoke to the Scenic Coast Association of Realtors last week on the progress of this year’s re-assessment of property tax values. The re-assessment of property tax values is based on Proposition 8. (No, not the one about marriage.)
Property Taxes are initially set at 1% of purchase price, per Proposition 13. Your actual property tax bill may be higher because of local bonds, assessments and fees. This base rate is increased each year by the lower of the CPI or 2%. For the past few years, however, our market has been declining, so Proposition 8 has come into play. Proposition 8 allows for your property tax assessed value to be reduced in a declining market.
Each year, the county re-assesses the value of your property by comparing the CPI adjusted base rate to the January 1st value of your property. Your property is then taxed based on the lower amount.
The county has now reviewed all single family residences less than 10 acres purchased through 2003. This years adjustments created a reduction in property taxes to be collected of $1.6 Billion. This loss, of course, will be offset by new tax revenue from the sale of new construction, new transfer sales where the old tax base is lower than the current sales price, as well as the 2% annual increase of properties that have value lower than current market value.
View the country tax assessors web-site: http://www.slocounty.ca.gov/Assessor.htm for more formation.