- UNION-TRIBUNE December 7, 2007
San Diego County homeowners who have seen their property values fall for well over a year are looking to lessen their pain. An estimated 15,000 property owners are asking for tax relief because of falling values, according to the county assessor’s office. An additional 1,623 who lost their homes in the October wildfires are also looking for help. If a home is reappraised at a lower value, the owner’s tax burden falls.
The requests for reassessments are in addition to the reduction of values already made on about 11,000 properties between January and June during an annual process in which assessors take the initiative in examining parcels.
The impact on residents and government will be noticeable, but not profound, officials say. For example, a couple who bought a condo two years ago for $300,000 only to see its value fall to $250,000 today would save about $500 annually on their tax bills.
Property tax receipts are expected to top $4.6 billion in fiscal 2009, which begins July 1, up 6 percent from this fiscal year. There was a 9.3 percent increase from fiscal 2007 to this year.
County Assessor Greg Smith’s office did not have estimates on residential, commercial or industrial property taxes because officials said it is too early in the fiscal year.
Maria Kachadoorian, Chula Vista’s finance director, expects property tax receipts to rise 3.8 percent to $31.4 million next year – a sharp dropoff from the 24.3 percent increase this year. Receipts totaled $16.4 million just four years ago. “The experience of the last five to eight years probably we’re never going to assume (to recur), even if the housing market comes back,” Kachadoorian said.
Jay Goldstone, San Diego’s chief city financial and operating officer, said budget projections are trending as expected.
“We had put in a 6 percent growth rate for property tax,” Goldstone said, down from 7.25 percent in fiscal 2007. “When we got the assessment (projections) from the county, they were anticipating an 8 to 8.9 percent growth. We never made any adjustments. I think that will turn out to be closer to 6 percent and maybe a little above that.”
Property taxes make up about one-third of the city’s overall $1.1 billion in general fund revenues for day-to-day spending.
State law allows property owners to appeal their assessments by Nov. 30 each year. The county estimates 15,000 were filed by the deadline.
That number falls short of the housing woes from 1992 to 1997, when the county averaged 21,000 requests annually.
The homes up for reassessment represent less than 1 percent of the county’s more than 1.1 million properties. And not every request will be granted. Last year, fewer than 500 of the 3,300 requests resulted in a property’s value being decreased, although nearly 600 requests are pending.
Smith’s office can adjust the assessments if county appraisers agree that a property is worth less than its assessed value.
The assessment is generally set at the purchase price. Taxes are set at 1 percent of the assessed value and can increase a maximum 2 percent annually, under 1978’s Proposition 13 tax limitation measure.
If there is no agreement on a lower value, owners can seek a hearing before the county assessment appeals board, which makes the final determination. Owners are required to pay their tax bills as submitted until they are notified of a reduction and receive a revised bill or rebate.
