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FAQ 
 
Below is a list of questions frequently asked by our customers who are seeking to lower Property Taxes.  Feel free to contact us directly via email if you have any questions.
 
  • Won't the County Assessor's office automatically reduce my taxes?
  • How do I know my Assessed value? 
  • Can I file myself?  Why do I need this service?
  • What is Proposition 13 and Proposition 8?
  • How long will it take for me to get my refund?
  • Why isn't the reduction permanent?



Q: Won't the County Assessor's office automatically reduct my taxes? 
A: No.  California Property Taxes are controlled by Proposition 13.  Proposition 13 dictates that a property's assessed value is determined by a formula which does not take market value into account.  The base value is determined when the property is purchased.  Every year afterwards the base value is increased by CPI which historically has set the rate of increase at 2%.  When the real estate market moves up by more than 2% this has the effect of an existing homeowner paying a significantly lower share than a neighbor who recently purchased a property. 
 
Proposition 8 was passed to recognize that real estate markets don't always move up.  In 2007 we saw a significant drop in home values across California.  If you purchased a house in 2004, 2005, 2006 or even the early part of 2007 it is highly likely that the Assessed value as determined by Proposition 13 is higher than the market value.  Consider this example - you purchased your home on Jan 1st,  2004 for $500,000.  The market moved up 5% in 2004 and moved up 2% in 2005.  Up until 2006 Proposition 13 was saving you taxes as Proposition 8 does not need to be invoked.  Assuming a 10% decline in prices in 2006 and 2007 the market value is below the Prop 13 value.  In 2007 and 2008 if you do not invoke Proposition 8 you will overpay on your property taxes by over $2,000.  You will keep overpaying as long as the real estate market is depressed. 
 
For you to recover the savings you must File to claim the Proposition 8 "decline in value" assessment. 
 
 Prop 13 ValueMarket ValueProp 8 DifferenceSavings
2004 $500,000$500,00000
2005 $510,000$525,0000 0
2006

 $520,200

 $535500

 0

 0

2007

$530,600

 $481,950

 $48,654

 $657

2008

 $541,212

 $433,755

 $107,461

 $1,451

 
A: Yes you can file yourself.  Most counties have published the instructions for doing so on their website or you can contact them directly.  Most require you to justify your decline in value by including market comps.  If you need help getting these comparables feel free to contact us at support@lowercaliforniapropertytax.com.  The appraiser is then responsible for verifying your claim and it will be up to you to follow up, justify your claim and you may appeal if necessary.
 
You absolutely don't need any company to file for you.  You can do it yourself and this site has all the information you need.  The companies offer a way for you to save time and hassle.  You could change your oil yourself or you can pay someone to do it for you.  Be wary however of anyone mis-representing themselves and over-charging.   We have seen solicitations that come in the mail that look like they came from the County - AVOID THOSE!!! 
  
Q: What are Proposition 13 and Proposition 8?
A: Proposition 13 and Proposition 8 both passed in 1978 are the seminal pieces of legislation that govern how much property tax California homeowners can be charged.  The following definitions from Wikipedia and the LA County website do a good job explaining their functions:
 
Under Proposition 13, the annual real estate tax on a parcel of residential property is limited to 1% of its assessed value. This "assessed value," however, may only be increased by a maximum of 2% per year, until and unless the property is resold. At the time of sale, the assessment may increase by an arbitrary amount, but future assessments are likewise restricted to the 2% annual maximum increase. If the property's market value increases rapidly (values of many detached dwellings in California have appreciated at annual rates averaging more than 10% over the course of several years) or if inflation exceeds 2% (common), the differential between the owner's taxes and the taxes a new owner would have to pay can become quite large.
 
In 1978, California voters also passed Proposition 8, a constitutional amendment that allows a temporary reduction in assessed value when a property suffers a “decline-in-value.” A decline-in-value occurs when the current market value of your property is less than the current assessed value as of January 1.