Assessor-County Clerk-Recorder Property Taxes: Prop 13 & Prop 8

Peter AldanaAssessor-County Clerk-Recorder

Assessor-County Clerk-Recorder

Assessment Roll History

Riverside County Assessed Value Median Home Price

Secured Property

2014 Assessment Analysis

Gross Value

Value Percentag

eAssessment Count

Assessment

Percentage

Average Per

Assessment

Residential$138,386,778,1

18 62.41% 522,574 57.46% $264,818Commercial 43,110,284,015 19.44% 27,570 3.03%1,563,666Condominiums 13,607,259,483 6.15% 64,447 7.09% 211,139Vacant Land 11,077,268,712 5.00% 114,739 12.62% 96,543Appartments 7,646,418,856 3.45% 5,006 0.55%1,527,451Manufactured Homes 4,351,934,006 1.96% 65,232 7.17% 66,715Agriculture 2,837,098,070 1.28% 7,844 0.86% 361,690Timeshares 723,975,717 0.33% 102,020 11.22% 7,096

Total Value Gross$221,741,016,9

77 100.00% 909,432 100.00% $243,824

Allocation of Property Tax Revenue

Education46.55%

Redevelopment27.15%

County11.17%Special Districts

8.01%

Cities7.12%

Prop 13 and Prop 8

Prop 13

Prop 8

• Limits the increase of assessed value to 2% per year (except for properties under Prop 8)

• Protects taxpayers when property values are dramatically increasing

• Assessor must enroll the lower of the Prop 13 value or market value as of lien date (J anuary 1) for each year

• Protects taxpayers by providing a temporary reduction in value if property values decline

Decline-in-Value (Prop 8)

Temporary Prop 8 Value

• The Assessor determines value as of lien date (January 1).

Prop 13 Limit

Example:

In the example above, the market rate of the property would not reach the Prop 13 limit until 2032.

• A property is purchased and valued at $450,000 in 2006

• In 2013, that same property is valued at $300,000 under Prop 8

• The expected market value increase is estimate at 5% per year

Tax implication for properties under Prop 8

• Due to an increase in property values, many taxpayers will see an increase in property taxes for 2013.

• The average value increase for a residential property in Prop 8 status is estimated at 9.5% for 2013.

• Properties valued under Prop 8 are temporary and can increase at any amount up to current market value; however, it cannot exceed the value assessed at purchase adjusted for inflation (Prop 13).

• Example:2007 2008 2009-2012 2013

Prop 8 Value $450,000 $350,000 $275,000 $300,000

Tax Rate (est.) 1.20% 1.20% 1.20% 1.20%

Property Tax $5,400 $4,200 $3,300 $3,600

Special Asmnt(s) $2,000 $2,000 $2,000 $2,000

Property Tax Bill $7,400 $6,200 $5,300 $5,600

Effective Tax Rate 1.64% 1.77% 1.93% 1.86%

Decline-in-Value (Prop 13)

Prop 13 Value

• The lower of the Prop 13 or Market value would be assessed as of lien date (January 1).

Prop 13 & Prop 8 • …Basically, Proposition  13 provides a permanent ceiling on

what the assessed value can be; but due to Proposition 8, the floor under the ceiling can move up and down.

• While the tax reduction on qualified homes is temporary, the money saved by the homeowner during the reduction is permanent. Proposition 13 continues to protect all property owners.

Assessed Values

HPI - Repeat Sales by Zip Code (Apr 2014 – Apr 2015)

ZIP CODE CITY CHANGE MEDIAN SALES PRICE

92201 INDIO 7.67%

215,000

92211 PALM DESERT 2.66%

330,000

92234 CATHEDRAL CITY 7.68%

225,500

92236 COACHELLA 4.58%

210,000

92262 PALM SPRINGS 8.59%

337,500

Prop 60 & 90 Information

• This program may provide a property tax benefit for those age 55 or better that have owned a home in another county for a long period of time and wanted to relocate to Riverside County.

• A qualified individual may transfer the base year (Prop 13) value.

• This is a “one-time” benefit.

• To qualify the purchase must have been made after September 19, 2013.

• Prop 60 is available for those living within Riverside County.

• The Prop 8 value cannot be transferred for either Prop 60 or 90.

Supplemental Assessments

• Since July 1983, State law requires the Assessor to reappraise property as of the date of change-in-ownership or completion of new construction.

• The Assessor makes a supplemental assessment which reflects the difference between the prior assessed value and the new assessment.

• This value is prorated based on the number of months remaining in the fiscal year, ending June 30.

• This assessment is in addition to the regular tax bill.

• If you have an impound account with your mortgage company, you should contact them to see if they will pay the supplemental bill from your impound account funds.

Things to Remember…

• Assessed values for properties in Riverside County have been posted to the Assessor website (riversideacr.com) for public viewing.

• The assessed value is reflected on the property tax bills that are to sent annually in October.

• If you believe your property value should be adjusted, please file a reassessment application (informal review) with our office before November 1.

• If, after the informal review, you still believe the value indicated is incorrect, you may file an assessment appeal (formal review) with the Clerk of the Board prior to November 30 ($30 fee).

• There is no charge for an “informal” review of your property value.

Fraud Prevention - Courtesy Notice

Courtesy Notice• In an effort to prevent property from being sold or

refinanced fraudulently, our office began the “courtesy notice” program in September 2011.

• This notice informs the property owner of record when certain documents are recorded.

• Since the inception of the program over 650,000 courtesy notices have been issued.

• Additionally, we began sending an information notice for all Notice of Defaults filed after August 1, 2013.

• If you are aware of any fraudulent activity regarding your property, please contact the District Attorney’s real estate fraud unit.

• As of March 26, 2014 the DA Fraud Fee was increased to $10.

Real Estate Fraud

Fraud Prevention

New Legislation – AB 1698

Falsified Public Records

• After a person is convicted of a violation of felony pertaining to the recordation of any false or forged instruments, upon written motion of the prosecuting agency, the court, is required to issue a written order that the false or forged instrument be adjudged void ab initio if the court determines that an order is appropriate under applicable law.

• This order shall be recorded in the county recorder’s and the fee shall be waived pursuant to GC 27383

New Legislation – AB 1888

Documentary Transfer Tax of Tax Due Shown on Separate Paper

• Amends Revenue & Taxation code 11932

• Every document subject to Documentary Transfer Tax that is submitted for recordation shall show on the face of the document the amount of tax due and the incorporated or unincorporated location of the lands, tenements, or other realty described in the document.

• “No Show” statements will not be accepted as of January 1, 2015.

Welcome To Our New Website!

Important Dates

• J anuary 1 Date of Valuation (Lien Date)

• J uly Value Notice Letters are available online

• November 1 Decline-in-Value Reassessment Applications are due

• October Tax Bills are mailed

• November 30 Last day to file Assessment Appeals

• December 10 1st Installment of Property Taxes due

• April 10 2nd Installment of Property Taxes due

Contact Us

Assessor: 951-955-6200 (8am-5pm)/ 800-746-1544

Clerk-Recorder: 951-486-7000

Administration: 951-486-7450

Email: accrmail@asrclkrec.com

ACR Website: riversideacr.com

Property Tax Portal: riversidetaxinfo.com

Questions/Suggestions?

Peter AldanaAssessor-County Clerk-Recorder