Prop 13 When Does the Assessor Re assess in California by Valerie Faltas
The state of California only allows two things that initiate a re assessment change in ownership also called a transfer new construction. A transfer in ownership is when any part of the ownership interest in the residence has changed whether money changed hands or not. The Office of the Assessor will review the transfer to determine if its re assessable. If it's an assessable change in ownership the data is sent to the appraisal personnel to determine or review the value modify the base value appropriately. A change in ownership that isn't assessable must have fallen within the parameters of an approved exemption. A transfer into a revocable trust or an inter spousal transfer that are both examples of exemptions allowed in California articulated in our Inherited Property Exemptions Guide detailed in the California Little Black Book.
If a change in ownership is not assessable meaning it exempt the ONLY way the Assessor knows this is via forms that are recorded with the deed. If no exemption applies the transfer in ownership is assessable per Prop 13. If you do not apply for an exemption submit a form or offer accepted documentation for an exemption you will be re assessed automatically. The Office of the Assessor is mass appraisal organization if you don't communicate with them through forms documentation they won't automatically know how to process your change in ownership.
The other trigger for assessment based on Prop 13 is new construction. The Assessors' Office is told by the city or county building safety offices. The city or building safety give the information about issued permits to the Assessor for property tax purposes. Keep in mind your city receives some of your property tax dollars so though its primarily a state tax your local municipality benefits from it. The permit information is given to the real property appraisers to update the building record change the base value if warranted based on Prop 13. Normally it takes the Assessors' Office a fair amount of time to get to since field work is necessary to find out what was done to your residence then a valuation process. If there is demo your property taxes will likely be reduced if there is an addition there is likely going to be an go up. So if you demolish a pool your property taxes will decrease if you add a pool your property taxes will go up. Construction varies from residence to residence it will be evaluated based on the value that was created or taken away. This is clearly explained in the California Little Black Book with examples scenarios. When was employed by the Assessor I assessed countless homes where various types of construction was done would be happy to answer any questions you may have pertaining to this
Similar to new construction there is re assessment of a property if the use of it has changed. For example if a complex of own your owns is converted into condominiums the Assessors' Office will review reassess the value of each unit since the use change affects the market value of the complex. Generally speaking in California there are two events that trigger re assessment based on Prop 13 change in ownership or new construction.
About the Author Valerie Faltas Property Tax Expert has been involved in all facets of real estate for over ten years including assessments appraisals estates trusts investing much more. She is Certified Property Tax Appraiser Licensed Residential Appraiser a member of the International Association of Assessment Officers. As a real estate investor advisor she is well versed in all aspects of real estate. to contact Valerie Faltas go to her website propertytaxlittleblackbook. com.
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