Proposition 8 / Reduction of Assessed Property Value for Tax Purposes application

GREGORY J. SMITH
SAN DIEGO COUNTY ASSESSOR
1600 PACIFIC HIGHWAY, ROOM 103
SAN DIEGO, CALIFORNIA 92101-2480
TELEPHONE (858) 505-6262
TEMPORARY REDUCTION OF ASSESSED VALUE FOR PROPERTY TAX PURPOSES
(Section 51(a), Revenue and Taxation Code - Proposition 8)


Proposition 8 (which was passed by the voters in June, 1979) allows a temporary reduction in
property tax assessments. Basically this proposition states that if the market value on January
1 of any current year falls below the assessed value (as shown on your property tax bill), the
Assessor’s Office must temporarily lower the assessment to reflect market conditions.

In practical terms, and with the history of real estate appreciation, most assessed values in San
Diego County are well below market value. Normally, only recently purchased properties that
have subsequently declined in value may be eligible for this temporary reduction in value under
Proposition 8.

Property owners who believe that the market value of their property is less than their current
assessment should contact the Assessor’s Office for a review. If supported by a decline in recent
sale prices, the assessed valuation will be lowered to reflect current market conditions.

The Assessor’s Office will then review the subject property on an annual basis each
January 1st. When the market has "turned around" and the value has increased, the assessment
of the property will also be increased (plus the annual 2% inflation factor mandated by
Proposition 13). Under no circumstances, however, can this increase in value exceed the
original assessed value (plus the 2% inflationary factor compounded).

In conclusion, Proposition 8 allows the Assessor’s Office to provide necessary relief to owners
whose property values have declined, while still retaining the ability to review and increase those
values when market conditions improve. For additional information, please call the Assessor’s
Office at (858) 505-6262.
GREGORY J. SMITH
SAN DIEGO COUNTY ASSESSOR
1600 PACIFIC HIGHWAY, ROOM 103
SAN DIEGO CALIFORNIA 92101-2480
TELEPHONE (858) 505-6262

APPLICATION FOR REVIEW OF ASSESSMENT
Under State law, (Proposition 8), if the current market value of your property falls below the assessed or taxable value as shown on your tax bill, the Assessor’s Office is required to temporarily lower the assessment.

This type of property tax relief generally applies to more recently purchased properties. If you feel you qualify for this reduction, please file this form with the Assessor’s Office between Jan. 1st and June 1st . Please indicate your opinion of value by providing supporting documentation, such as sales of comparable properties or a recent appraisal.

Our staff will review your application, and notify you of the results in July. If you disagree with the value at that time, you must file an assessment appeal with the Clerk of the Assessment Appeals Board between July 2nd and November 30th. The necessary application can be obtained by calling the Clerk’s Office at (619) 531-5777.

Owner: _____________________________________ Parcel Number: ___________________________________
Mailing Address: _____________________________ Address of Property: ______________________________
_____________________________ _______________________________
Value on Current Assessment Roll: ___________________
Owner’s Opinion of Market Value: ___________________
Comparables to Support Owner’s Opinion of Value:
PARCEL NUMBER
ADDRESS
SALE DATE
SALE PRICE
SIZE
REMARKS: _____________________________________________________________________________________________
________________________________________________________________________________________________________
________________________________________________________________________________________________________
Signature _______________________________________ Date ____________ Telephone __________________
Agent - Michael Gauthier / RE/MAX Associates
Agent Mailing Address:
5005 Texas St. #400
San Diego, CA 92108
Direct - 619-203-2860
E-Mail -mailto:-michaelgauthierrealtor@hotmail.com
VALREV1 (11/04)

Mortgage Tax Relief Bill San Diego

President Bush signed legislation today that will protect struggling homeowners from being hit by taxes tied to mortgage debt that has been forgiven by a bank or lender.

The so-called Mortgage Forgiveness Debt Relief Act of 2007, or bill HR 3648, amends current law that requires homeowners to treat forgiven mortgage debt as taxable income.

“Today’s bill will ensure that any debt forgiven on a mortgage secured for a principal residence will not be taxed. This is very significant legislation. This may also mean that some day in the future these families can once again achieve the dream of homeownership,” Bush said.

The measure offers a tax break to homeowners who have some portion of their mortgage debt forgiven through foreclosure or as a result of a loan renegotiation.

It provides a three-year exclusion for discharges of up to $2 million in debt and is expected to reduce the taxes of strapped homeowners nationwide by $650 million.

“When you’re worried about making your payments, higher taxes are the last thing you need to worry about,” Bush said during the bill-signing ceremony.

“This is going to make a happy holiday for many homeowners,” Bush said of the bill just before signing it into law.

In addition, the bill extends a tax provision that allows homeowners to deduct the cost of mortgage insurance premiums from their federal income tax returns until 2010.


Feel Free to call us with any questions you may have or you are in need of our services at
619-203-2860
michaelgauthierrealtor@hotmail.com