How to Handle Property Tax Reassessment in California?

Question from MJ, How to Handle Property Tax Reassessment in California?

Answer from AI:

When dealing with property tax reassessment in California, especially after the death of a property owner, it’s important to understand the rules and exceptions that might apply. California’s property tax system is governed by Proposition 13, which limits annual increases in assessed value to a maximum of 2% unless there is a change in ownership or new construction.

Understanding Property Reassessment

When a property owner dies, the property is typically reassessed to its current market value. However, there are exceptions, such as the parent/child exclusion, which can prevent reassessment under certain conditions.

• Parent/Child Exclusion: This allows property to pass from a parent to their children without reassessment, provided specific conditions are met. As of recent changes, the exclusion applies only if the property was the parent’s primary residence and one of the children continues to live there.
• Reassessment Triggers: If the conditions for exclusion are not met, the property will be reassessed at its current market value, potentially leading to higher property taxes.

Steps to Address Reassessment Issues

If you find yourself in a situation where a property has been reassessed, there are several steps you can take:

1. Review the Reassessment: Verify the details of the reassessment to ensure accuracy. Check if the parent/child exclusion was applicable and whether the necessary paperwork was filed.
2. File for Exclusion: If you believe the exclusion should apply, you may need to file a claim with the county assessor’s office. This typically involves submitting forms and supporting documentation.
3. Appeal the Reassessment: If you disagree with the reassessment, you can file an appeal with the local assessment appeals board. This process involves presenting evidence to support your case for a lower assessed value.
4. Negotiate the Property Value: In some cases, it may be possible to negotiate the assessed value with the assessor’s office, especially if there are discrepancies or new information that could affect the valuation.

Managing Tax Payments

Once the reassessment is finalized, you will need to manage the resulting tax payments:

• Supplemental Tax Bills: These are issued to cover the difference between the old and new assessed values. It’s important to budget for these additional costs.
• Payment Plans: If the tax increase is significant, inquire about payment plans or other options to manage the financial impact.

Consulting a Legal Professional

Given the complexity of property tax laws and the potential financial implications, it is advisable to consult with a legal professional or a tax advisor. They can provide personalized advice and help navigate the process effectively.

For more detailed information, you can refer to resources such as the [California State Board of Equalization](https://www.boe.ca.gov/) and the [California Legislative Information](https://leginfo.legislature.ca.gov/).

Understanding these processes and taking the appropriate steps can help manage the impact of property tax reassessment and ensure compliance with California’s property tax laws.