Once home values started declining, the San Diego County tax assessor started revising downward the assessed values of properties bought during the peak era.
Many were a results of requests made by homeowners, but the assessor’s staff also revised some voluntarily. Now that it appears that the market has bottomed, are the tax-assessed values being raised?
A generous reader offered the following:
The properties that were not re-assessed downward under (the other) Prop 8 continue to creep up every year by either 2% or California CPI, whichever is lower. That’s basically every home bought prior to the bubble, and they only got a break when CCPI was negative for the first time since Prop 13 and every property got a shave.
Those that were adjusted downward under Prop 8 are re-evaluated every year and can jump up to whatever the tax assessor says they are worth until they get restored to their original assessed value plus annual increase (which they also track). When those properties get back to where they would have otherwise been but for the recession, then they increase annually like all other properties.
The Assessor says they are cautiously restoring AV on those that his office reset because they don’t want to fight appeals and in many areas they just don’t have sufficient volume of comps to justify higher AV yet.
Glad to hear that the tax assessor is ‘cautiously restoring’.