Property Q&A in 90810>Question Details

kaysea04, Home Owner in Long Beach, CA

Property Tax Value versus Appraised Value

Asked by kaysea04, Long Beach, CA Sat Dec 8, 2012

I recently purchased a single family residence where the appraised value matched the asking price of 235K. At that time, the home was a foreclosure that needed a little TLC. After fixing it up and comparing it with other homes on the same street, recently renovated homes are selling for 300K.

When I received my property tax bill, I noticed that the value of the home was stated to be 250K. Does this mean that my home-to-value ratio at the bank should be adjusted; or that the state is overcharging me on my property tax bill? I'm confused on why the numbers don't match.

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Answers

5
If you have upgraded your home since you purchased it and it is now comparable to homes that are selling at $300,000, you should sit quietly and enjoy the fact that you are not being taxed at that level. The price of the home is a starting point for your property taxes and they are limited by Proposition 13 as to how much they can increase each year. Here is a link to the Los Angeles County Property Tax Portal that can answer more of your questions.

http://lacountypropertytax.com/portal/list/faq.aspx?faqID=53

Your tax bill is not a reflection of the current value of your home. When you sell your home the buyer will have a new assessed value and be taxed based on that price. Many politicians are always looking for ways to "boost revenues" by eliminating Prop 13. This would hurt many seniors on fixed income and anyone who has their property increase significantly in value.

Tony Warfield
Associate Broker
3 Leaf Realty
2 votes Thank Flag Link Sat Dec 8, 2012
Yes, Prop 13 is at the heart of this matter. We typically estimate 1.25% of the purchase price, but that only estimates the voter approved bonds. 1% of the purchase price + voter approved debt (bonds) + special assessments.

The 1% of purchase price can increase 2% per year. So in your case first year $2350 + voter approved debt + special assessments. Second year $2397 + voter approved debt + special assessments.
1 vote Thank Flag Link Wed Dec 12, 2012
Also agree with Tony. Appraised value has nothing to do with assessed value, and unfortunately both of those often have nothing to do with real market value.
1 vote Thank Flag Link Sat Dec 8, 2012
Hi kaysea04,

Tony has provided you with a "hit-the-bulls-eye" response.

While it's a topic that can cure insomnia, there's quite a bit more you need to know about Property Taxes.

For example:

1) Your effective property tax bill actually consists of three separate levy categories: General Tax Levy, Voter Approved Indebtedness and Direct/Special Assessments.

2) You may be receiving a supplemental tax bill.

Please review:

"Estimating Property Taxes in CA"
http://www.trulia.com/blog/steve_ornellas_mba_re_mastersgri/…

-Steve
1 vote Thank Flag Link Sat Dec 8, 2012
I mean loan to value ratio..
0 votes Thank Flag Link Sat Dec 8, 2012
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