With a decrease in property values over the past year or so, the Amador County Assessor's Office is in the process of reviewing and reducing many assessments throughout the county and is also receiving numerous inquiries about the reduction of assessments under the guidelines of Proposition 8.
The difficult task we have is determining which assessments would be eligible for a reduction and which would not. This difficulty arises due to the fact that, even though real estate values may be down over the last year or so, not every property owner can expect their assessment to be reduced. However, we are looking to reduce assessments of any property when its fair market value is less than its Proposition 13 assessed value.
Property owners who have purchased or constructed their homes in the past three to four years are the most likely to qualify for a lower assessment. As property values were rising as much as 25 percent annually during the first half of this decade, assessed property values were bound by the provisions of Prop. 13 with a maximum increase of 2 percent per year. This means assessed values that were established more than three or four years ago tend to be lower than the current fair market value, and will most likely not qualify for reduction.
Finding all of the properties that are eligible for reduction is a difficult task for the assessor's office. We are a rural county with a small percentage of homogeneous housing tracts or subdivisions. Our properties have to be evaluated on an individual basis and take into consideration numerous variables that contribute to value. For these reasons, we are encouraging all property owners to look at their assessments; if they feel that the fair market value of their properties may be less than the assessed value, contact this office and ask for a review. We truly do not want any property in the county to be over-assessed.
When we are asked to consider a property for a reduction, the assessor's office compares the assessed value of the property as of Jan. 1, with the current fair market value. The current market value of the property is determined by analyzing sales, and possibly listings, of comparable properties in the area. The customary time parameters for the comparable sales are up to one year prior to and up to three months after Jan. 1. For example, for Jan. 1, 2009, we would look at sales that occurred from Jan. 1, 2008 through March 31, 2009.
For a reduction to be in order, properties with characteristics similar to the property being considered must have sold for less than the current assessment.
If a property owner disagrees with the assessor's value after a review has been completed, he or she may file an appeal with the county Board of Equalization. The filing period is July 2 through Nov. 30.
If any reduction of value is made under Prop. 8 guidelines, the property must then be reviewed each year until the current market value exceeds the established base year value adjusted with the annual inflation factor, which can be no higher than 2 percent annually.
If a property owner believes that a reduction in assessment may be in order and has not received notification from the county assessor's office, he or she can easily make the request. The simplest way to get the process started is to click on the commonly used forms in the assessor section of the county Web site at www.co.amador.ca.us and fill out the Request for Assessment Review form, print it and mail it to the assessor's office. A form can also be requested at the counter or by phone to be sent by mail. It is a simple form to fill out and, if comparable data or other information is not readily available, it can be left blank and we'll do the research.
These assessment reviews result in one of two outcomes. The assessed value may be reduced or it may stay the same. The review will not result in an increase.
Assessment review requests may be submitted to the assessor's office at any time. Requests for Assessment Review that are received until Nov. 30 of next year will be reviewed for the 2009-10 tax year.
It is important to remember that the filing of an assessment review request does not extend any filing dates for assessment appeals, nor alter or delay the date taxes are due. Also, supplemental assessments will not be revised due to Prop. 8 reviews.
If there are any questions or concerns, please contact the assessor's office at 223-6351 or e-mail jrooney@co.amador.ca.us.