Assessor takes look at property values
By John Loesing newstip@theacorn.com

Los Angeles County Assessor Rick Auerbach said his staff is in the early stages of reviewing approximately 310,000 single family homes and condos for a potential decline in value reassessment.

Auerbach said his office is trying to ensure that property owners are not over-assessed because of the market downturn. By law, a review of recently sold properties is required.

In 1978, California voters passed Proposition 13, which limited the increase in a property's assessed valuation to only 2 percent a year- unless the property is sold or, as in the case today, a property experiences a decline in value in which case the assessment could be lowered.

A report from DataQuick real estate service said the February median home price in the Southland had dropped a record 17.6 percent.

"Initially, we began looking at homes and condos that were purchased in the two-year period from July 1, 2005, to June 30, 2007, whether purchased new or as a resale, to determine if a reduction in the property tax assessment is warranted," Auerbach said. "These properties are the highest priority because they are the most likely to receive a value reduction."

So far, the assessor's office has reviewed more than 67,000 properties with 41,000 given a reduced valuation. The reductions average $66,000, which will result in a property tax savings of approximately $660 for each affected property owner.

Auerbach said his office will now begin looking at purchase dates going back to July 1, 2004.

Owners will be informed by June 30 if their property value was lowered, allowing them time to file an appeal with the county's Assessment Appeals Board if they disagree with the amount of the reduction.

For owners whose properties are not included in the review and believe their property is assessed above its actual value on Jan. 1 of this year, there is a way to request a review. Property owners can download a declinein-value review application from the assessor's website at assessor.lacounty.gov, or request a written application by calling (888) 807-2111.

The assessor will issue a final report on his activity in June.

The decline in value is expected to impact local governments that rely on a percentage of the property tax for budgetary income.

"I expect all cities, including Agoura Hills, will see a decline in property tax income, or at very least a leveling off," said Greg Ramirez, the city's manager.

"How much is the question," Ramirez said. "We are just beginning our budget process now, and this is one of our primary concerns. In other words, even if we do not forecast a decrease, I do not expect a net increase."

Although the county's 2008 tax roll increased less than the 2007 roll, it was still up 6 percent, indicating that the issue of declining property values may not be as severe as many think, Auerbach said.

With the state facing a $16billion budget shortfall, some are calling for the repeal of Prop. 13, which would put more tax revenue in state coffers.

"There's always somebody thinking about it," Auerbach said. "I don't think it would be a good idea."