Real Estate Articles
County Assessor Asks REALTORS® to Remind Homeowners of Assessment Review and Appeal Deadlines
Santa Clara County Assessor Larry Stone continues to ask REALTORS® to remind their clients to be mindful of the deadlines if they intend to seek a review of or appeal their property tax assessment.
The Santa Clara County assessor's office is one of 10 in the state that mails assessment notification cards to homeowners early every year. This year the notification cards will be sent out to 465,000 property owners on June 23.
Stone, who spoke at this week's Los Gatos/Saratoga District tour meeting, said last year, after receiving thousands of requests for informal reviews and reductions, his department reduced the value of 98,000 properties, which took a total of $19.3 billion off the county's assessment roll. Stone believes most reductions will carry over this year, and an additional 30,000 to 40,000 properties will be placed on Proposition 8 temporary assessment relief status, as well.
To make matters worse, Stone expects a tsunami of assessment reductions on the commercial sector for the next two years. As long-term leases expire, companies will be forced to move, downsize or reduce rent, he said.
Homeowners should wait until they receive their notification card before asking for an informal review or appeal, he stressed. In the meantime, homeowners can gather information regarding the value of their home based on values at the beginning of the year. Remember, in accordance with Proposition 8, the market value of a property has to drop below the assessed value before a homeowner can seek a property assessment reduction. The time to take note of comps begins on the lien or valuation date, which is January 1 of the current year.
Once homeowners receive their assessment notification cards, they have until August 15 to seek an informal review. Homeowners can do this online by going to www.sccassessor.org/state. Homeowners have between July 2 and September 15 to file a formal appeal. Requests for appeals cannot be considered past the deadline.
Stone said he sees some improvement in the housing market, but inventory is still way down. New building permits dropped 72 percent in one year. He indicated in 2004, there were 177,000 new building permits; in 2009, there were only 36,000.
The county assessor said corporate profits need to increase; job growth needs to take place; credit liquidity, "the juice for any capitalist society," needs to be available; and, most of all, public confidence needs to return. If these things don't happen, expect drastic cuts in government services, he warned.
Each year the county's assessment roll growth has declined. In 2006, the roll grew 9.6 percent; 2007, 8.3 percent; 2008, 7 percent. Last year, the roll grew by just 0.18 percent. Stone expects the roll to be negative this year.
"There's no more bone left in Santa Clara County," Stone remarked.
On the positive side, Stone said Santa Clara County's situation is actually a "cakewalk" compared to other counties in the state, which are already experiencing cuts and assessment roll reductions of enormous proportions.
The Silicon Valley Association of REALTORS® (SILVAR) is a professional trade organization representing over 4,000 REALTORS® and Affiliate members engaged in the real estate business on the Peninsula and in the South Bay. SILVAR promotes the highest ethical standards of real estate practice, serves as an advocate for homeownership and homeowners, and represents the interests of property owners in Silicon Valley.
The term "REALTOR®" is a registered collective membership mark which identifies a real estate professional who is a member of the National Association of REALTORS® and who subscribes to its strict Code of Ethics.
Variations of this article have appeared in local area newspapers.
For further information, please email or call the SILVAR office at (408) 200-0100.