Finance Articles

Prop 13 does apply today to all property owners in California. Prop 13 was enacted in 1978 to control the amount of property taxes paid by homeowners. Prior to Prop 13 there was no limit on property taxes. The assessed value was based on the changing market value every year and because the market values increased significantly over time in California, the amount of property taxes increased significantly. As the values of the homes increased over time, older folks were being driven out of their homes unable to pay the property tax increases.

Prop 13 was established to assist those on fixed incomes who could not adjust to the increasing property taxes. This amendment to the State Constitution initiated by Howard Jarvis came about as a result of a ballot initiative passed by voters in June of 1978, called People’s Initiative to Limit Property Taxation. Prop 13 is an amendment to the California Constitution and is highly controversial because of its limiting nature and the imbalance it has created in terms of how much each homeowner pays. Homeowners who purchased many years ago dont pay nearly as much in property taxes as those who have purchased more recently and as a result of this fact many homeowners think Current California Property Tax Law is unfair and should be revoked.

Prop 13 applies to all who own property in California even those who have bought recently. What Current California Property Tax Law does today is establish a cap on the amount of property taxes the government can charge you. The initial purchase price of your property, as long it was a market transaction, becomes your base value.

A market transaction is when your purchase price is market value it will be accepted as your taxable base value. If you paid a substantial amount below market value for your home the Assessor will assess you at market value because that is what Prop 13 states your taxable base value should be based on. Your assessment is based on market value as of the re-assessable event which is generally your purchase price of the property and if your purchase price was market value the Assessor will accept it as market value. If not, the Assessor will determine a value for you based on comparable sales of your home.

Generally, most California Homeowners pay about 1.25% of their assessed value in actual property taxes per year. The difference between your base value and your assessed value is very simple. Your base value is the value established as of the date of a re-assessable event, often this is when you initially purchased your property. The assessed value is the value you pay taxes on for a designated year since all base values have a 0-2% increase per year based on Prop 13.

So your base value is the value your property taxes are based on and then it will increase slightly every year. Generally, most Californians pay about 1.25% of their assessed value in actual property taxes per year. So as your base value increases every year raising your assessed value year to year, accordingly what you pay in property taxes goes up also. Even though your property taxes do increase some every year it is limited, and is ultimately tied to your base value. So even if the market sky rockets and your property value increases substantially, your property tax base wont increase along with the market it is limited to the 2% trend based on State Law.

About the author: Valerie Faltas has specialized in Property Taxes for the past 5 years and has produced a free report that exposes the truth about Prop 13 and Prop 8. Check out our FREE California ebook which explains Prop 13 in more depth with examples! Feel free to contact me with any questions you may have! Get your free report on Prop 8 and Prop 13 now. You have full permission to reprint this article provided this box is kept unchanged.

In addition to your basic property taxes, if your property tax bill seems unusually high especially during this housing crisis you may have a Special and/or Direct Assessment on your home. This will vary based on the area your house is located, there may be charges necessary to pay off any voter-approved general obligation bonds or other indebtedness, special assessments, or direct levies. Such as, a Direct Assessment may be applied to your house if voters decide to establish a sewage system in a neighborhood that is older where most of the homes use septic tanks. The direct assessment is used to cover the cost of this improvement to the neighborhood.

Generally, a direct assessment would be taxed over years so the homeowners are not overwhelmed by the tax to pay for the new improvement. Special and Direct Assessments have a specific reason they are assessed such as a specific improvement to a city and will only last as long as it will take to cover the cost of that improvement. Typically, this type of debt causes a small fraction of a percent increase in the property tax rate.

Direct assessments are applied on the property tax bill by the county tax collector on behalf of the local levying agency or district, not on behalf of the assessor, auditor-controller, and/or the county tax collector divisions. Remember, that Special and Direct Assessments are based on voter approved indebtedness so if there is any dispute it has nothing to do with the Assessor’s Office. For more information, or if you disagree with a special assessment against your property, you must contact the levying district directly. Usually this information is on your property tax bill.

Even if you disagree with your property tax bill, it is not wise to refuse to pay a property tax bill that contains the special or direct assessment, even when the direct levy amount is under dispute. Keep in mind that even if you disagree with your property tax bill it is always wiser to pay the bill and get refunded later than to have a lien against on your home. The processes to remove a delinquent property tax bill and all of the fines, require numerous signatures and documents within the Office of the Assessor and Tax Collector and is pretty messy. So keep it simple, pay your property tax bill.

About the Author: Valerie Faltas, Property Tax Expert has been involved in all facets of real estate for over ten years including assessments, appraisals, estates and trusts, investing and much more. She is a Certified Property Tax Appraiser, Licensed Residential Appraiser and a member of the International Association of Assessment Officers. As a real estate investor and advisor she is well versed in all aspects of real estate. To contact Valerie Faltas go to her website: www.propertytaxlittleblackbook.com.

It is very common for the Assessor’s Office property records to be inaccurate given the fact that the Assessor is a massive assessment government entity and the work was processed too quickly, or the information changed without the Assessor knowing or there was documentation that slipped through the cracks. There are many reasons for this, however the good news is that the answer to this problem is simple. Simpler than you may think. Every house there is a property record with the Assessor’s Office which includes a drawing of the shell of the building and details about the property.

Many Assessors have very detailed records depending on their resources, employees and workload. The data on your house are for value reasons even though other professionals in real estate use the data provided by the Assessor to confirm house records. From the drawing the square footage of the home is calculated, then the description includes the type of property, the use type, and any other details that may be relevant to the value of the residence.

The Assessor’s records affect most real estate purchases and sales despite the fact that the Assessor’s Office makes no representation of having information for anything other than assessment purposes. The records are in reality is generally used by real estate professionals as official. Essentially, making sure your records are accurate will more than likely affect the value of your home since the banks, buyers, sellers, etc. all use these records to confirm the structures on your property.

So often building information for your home are wrong, it easy to have the Assessor’s Office adjust them and often this will not result in an increased assessment. Get in touch with your county Assessor and your request will create a public service inquiry to have your data updated. The public service inquiry will be forwarded to staff memeber who will converse with you and/or maybe visit your property for dimensions or discover from you over the phone what the differences are in the records and adjustment accordingly. Commonly, the Assessor will use the data you give them over the phone or internet for a straight forward update such as a bedroom or bathroom count adjustment. Typically, this is uncomplicated for the Assessor’s Office to deal with. If there is new contruction to your home that you built and has not been assessed, it possibly could result in an increase in propety taxes however, if the reason it hasn’t been assessed is the Assessor’s fault there is likely a statute of limitations. When you speak to the Assessor about this find out if you will have an increase in your property taxes and make sure you document their response and the person who gave you that information. Remember, there are many facets to assessments and you want to be covered should you be misinformed.

Note that if differences were done prior to your purchase of the property it possibly is construction before transfer and if you acquire the home with the structure differences already there, often thre will be no rise in your property taxes that would result from the record update. The logic behind this is, is that you paid for those improvements at the time you purchased the house and so there is no increase in worth. But, if you enhanced your property then there could be a change in the value. The Assessor may ask for information and documentation from when you purchased the home such as the listing documentation. Often, the Assessor will go based on your word and will update the records through a phone call especially for simple adjustments.

Remember as you think about requesting these changes and adjustments that the Assessor’s Office is usually not connected to your city. The Assessor’s Office needs truthful records so the assessments of your home are accurate. The Assessor usually doesn’t care if what you have on your property is legal or not because even when not permitted it may add value to your home. The Assessor wants to keep an open channel of communication with the taxpayers so they generally don’t get into the habit of reporting anything whether structure related or not. The Assessor’s Office is not generally in the practice of telling the city what is or isn’t on your property. When taxpayers think of the Assessor or the City they often think these government entities as the same when they are usually totally seperate.

About the Author: Valerie Faltas, Property Tax Expert worked in assessments for over four years and assessed over 6,000 properties. Valerie is also a licensed appraiser, real estate investor and consultant. She left the Assessor to make information public she could not disclose while she worked there.

Are you searching for land, luxury homes, equestrian farms or commercial real estate in Tennessee? Tennessee offers some of the best equestrian property. However, you need an agent that knows their way around the local properties and this business.

When you want valuable service as a buyer, seller or property investor, Greenland Real Estate offers you the best. They have a trustworthy foundation of 10 years establishment. They are located south of Nashville, Tennessee in the Brentwood, Franklin area of Williamson County. This real estate company can offer you valuable service while serving for all your exclusive real estate needs.

There are numerous properties that this company can offer for its clients to choose from. These properties are available depending on the suitability of one’s price range or needed acreage. Since this company can procure exceptional equestrian, land, and commercial properties, its clients can be assured of being in safe hands with them. They can also offer listings of Recording studios and Properties for lease/ lease purchase. Grassland Real Estate has A- Rated agents that can definitely bring about added value to their clients.

Before securing the right realtor, many potential investors, sellers and buyer have various questions in mind. They may be doubtful about hiring one; since they worry that; they may not be able to do precisely what they want to do. Many are uncertain of the things an agent can do for them, whether they can offer them the right or wrong kind of assistance. Many individuals do not comprehend the significant role that these agents can fill.

These agents can provide various property options; they know its true worth as well as have an understanding of your specific requirements. When dealing with Grassland Real Estate, there is no need to fear researching their background and their record of accomplishment, they are notably highly experienced. They can answer all your questions honestly and confidently since they have such knowledge of the local area. They have established solid relationships to numerous clients.

Selling a property requires thorough planning and distinct considering. These experienced realtors can give adequate and proper recommendations. They can explain the value of properties and can promote your home. While buying a property, it is important to research and question further. They will be able to keep you up to date with what is going on with the properties you are either selling or buying and can assure you the commitment that you require. They have proven negotiation expertise in the real estate industry.

If you are an real estate investor, a seller or buyer you want a real estate company that have first rate materials as well as proven selling systems. They can guide you in current market data pricing and sales. They are proficient in suggesting an efficient pricing strategy. Feel free to arrange a professional tour; resting assured that these agents network with fellow agents to widen your options. Greenland Real Estate has the ability to link you with others as well as help you reach your goals.

Are you searching for land, luxury homes, equestrian farms or commercial real estate in Tennessee? Tennessee offers some of the best equestrian property. However, you need an agent that knows their way around the local properties and this business.

If you are a property investor, a seller or buyer, Grassland Real Estate can offer you a valuable service. They have a proven record of accomplishment of 10 years, while offering trustworthy foundations that every client ought to have. They are located in Williamson County south of Nashville, Tennessee in the Brentwood, Franklin area. This Real Estate Company provides you the best value and service for all your specific real estate needs.

While working with this company, you can choose from various properties. They have properties that are available to anyone depending upon their need in acreage and price range. Any client is safe in their hands, since this company is able to secure incomparable commercial properties, luxury homes and equestrian land. Their listings also include Properties for lease and lease purchase as well as Recording studios. If you seek value, Grassland Real Estate provides you with A- Rated agents.

Before securing the right realtor, many potential investors, sellers and buyer have various questions in mind. They may be doubtful about hiring one; since they worry that; they may not be able to do precisely what they want to do. Many are uncertain of the things an agent can do for them, whether they can offer them the right or wrong kind of assistance. Many individuals do not comprehend the significant role that these agents can fill.

However, these agents can understand your particular needs; they know the value of properties and can offer you many options. Notably, Grassland Real Estate is highly experienced; you can easily check their background and their record of accomplishment. They have worthwhile knowledge of the area and can answer your questions with honest assurance. Their solid relationships with clients speak for them.

Selling a property requires thorough planning and distinct considering. These experienced realtors can give adequate and proper recommendations. They can explain the value of properties and can promote your home. While buying a property, it is important to research and question further. They will be able to keep you up to date with what is going on with the properties you are either selling or buying and can assure you the commitment that you require. They have proven negotiation expertise in the real estate industry.

You want a real estate company that provides first-rate materials as well as proven selling systems, whether you buy, sell or invest. These agents are proficient in guiding you in the pricing of current market data and sales. They are capable in suggestions of efficient pricing strategies. Rest assured that this company would widen your options by networking with fellow agents. Feel free to arrange a professional tour. When you want to connect with prospects and achieve your needs, Greenland Real Estate can fulfill your needs!

Are you searching for land, luxury homes, equestrian farms or commercial real estate in Tennessee? Tennessee offers some of the best equestrian property. However, you need an agent that knows their way around the local properties and this business.

If you are a property investor, a seller or buyer, Grassland Real Estate can offer you a valuable service. They have a proven record of accomplishment of 10 years, while offering trustworthy foundations that every client ought to have. They are located in Williamson County south of Nashville, Tennessee in the Brentwood, Franklin area. This Real Estate Company provides you the best value and service for all your specific real estate needs.

There are numerous properties that this company can offer for its clients to choose from. These properties are available depending on the suitability of one’s price range or needed acreage. Since this company can procure exceptional equestrian, land, and commercial properties, its clients can be assured of being in safe hands with them. They can also offer listings of Recording studios and Properties for lease/ lease purchase. Grassland Real Estate has A- Rated agents that can definitely bring about added value to their clients.

As a seller, buyer or investor you can find answers by securing the right agent. Some potential clients hesitate over hiring one, they worry their needs and wants go unfulfilled. Some doubts may revolve around getting the wrong type of assistance or not having their needs met. Many do not realize how valuable these agents are for them.

These agents can provide various property options; they know its true worth as well as have an understanding of your specific requirements. When dealing with Grassland Real Estate, there is no need to fear researching their background and their record of accomplishment, they are notably highly experienced. They can answer all your questions honestly and confidently since they have such knowledge of the local area. They have established solid relationships to numerous clients.

These professional agents offer sufficiently proper recommendations with your well-defined considerations and precise planning. They are apt in explaining property value as well as delighted to promote your home. Ask questions and do your research. Whether you are a buyer or a seller, they are committed to keeping you updated on the properties. Their real estate industry negotiation skills are established and successful.

This real estate company have the first rate marketing materials and proven selling systems. Buyers, sellers, and investors can accurately guide you through the pricing according to the current market data and sale or can suggest the efficient pricing strategy. Professional tours for interested clients can be arranged. To widen their clients’ options, these agents can network with their fellow agents. They have the right ability to connect to people and help them reach their goals.

The state of California only allows two things that initiate a re-assessment: transfer in ownership (also called a transfer) and construction. A transfer in ownership is when any part of the ownership interest in the home has changed whether money changed hands or not. The Assessor will review the transfer to determine if its assessable. If it’s an assessable change in ownership, the data is sent to the appraisal staff to give or review the value and modify the base value appropriately. A change in ownership that isn’t assessable must have fallen within the parameters of an approved exemption. A transfer into a revocable trust or an inter-spousal transfer that are both examples of exemptions allowed in California explained in our Inherited Property and Exemptions Guide detailed in the California Little Black Book.

A transfer in ownership may be exempt and the ONLY way the Assessors’ Office will not assess is if this is communicated is with forms recorded with the deed or deeds. When the transfer in ownership is assessable per Prop 13 no exemption is applicable or has been applied for. If you do not apply for an exemption, submit a form or offer accepted documentation for an exemption, you will be assessed. The Office of the Assessor is a mass assessment organization and if you don’t tell them through written documentation they won’t know how to process your transfer or know that an exemption applies.

The other cause for re-assessment in the state of California based on Prop 13 is construction. The Office of the Assessor is notified by the city or county building and safety departments. The city or building and safety send information about issued permits to the Assessors’ Office for assessment purposes. Remember, your city also receives some of your property taxes so even though its primarily a state tax your local municipality benefits also. So when construction permits are issued by your city or county even if you don’t end up building, which happens often, the permits are still sent to the Office of the Assessor. The permits are given to the real estate appraisers so that they can update the building record and change the taxable value if warranted based on Prop 13. Generally, it takes the Office of the Assessor a fair amount of time to process because field work is required to find out what was done to your property and then the valuation process. If there is a demolition your property taxes will most likely be lowered and if there is an addition the taxable base value will likely increase. For example if you demolish a pool your property taxes will decrease. If you add a pool, your property taxes will go up. However, new construction varies from home to home and it will be reviewed based on the value that was created or taken away. This is detailed in the California Little Black Book with examples and various scenarios. While I worked for the Assessors’ Office I appraised countless homes where various types of construction was done and would be happy to answer any questions you may have pertaining to this!

Similar to new construction there is re-assessment of a property if the use of it has changed. For example if a complex of co-ops is converted into condominiums the Office of the Assessor will review and reassess the value of each unit since the use change affects the market value of the property. Normally in California there are two events that trigger re-assessment based on Prop 13: change in ownership or new construction.

About the Author: Valerie Faltas, Property Tax Expert has been involved in all facets of real estate for over ten years including assessments, appraisals, estates and trusts, investing and much more. She is a Certified Property Tax Appraiser, Licensed Residential Appraiser and a member of the International Association of Assessment Officers. As a real estate investor and advisor she is well versed in all aspects of real estate. To contact Valerie Faltas go to her website: www.propertytaxlittleblackbook.com.

Numerous homeowners know they’re paying too much in property taxes and the Assessor doesnt seem to care! The injustice comes from the fact that most taxpayers know their property tax values are higher than their current market values and subsequently are overpaying property taxes. When dealing with the Office of the Assessor and looking for help it seems like none is offered especially with the nature of this problem. Every homeowner needs to understand that the assistance the Assessor’s Office can give is limited. The Assessor’s Office is overwhelmed in this real estate market since all they hear from are frustrated property owners. In the midst of this real estate market and recession the entire country has gotten slammed with terrible news and most people are tightening up and unfortunately lashing out.

Many homeowners are stressed out about their property taxes and assessments, relax and take a deep breath; the good news is that there is hope for reducing your assessment especially in this real estate market. The key to lowering your property taxes as much as possible is: knowledge. Knowing the critical and relevant information necessary to reduce your assessment, you will ensure you are paying as little as possible!

The Assessor’s Office does not care and NOT because they do not want to, but since the AAssessor’s Office is inundated with work and overwhelmed with angry, frustrated, yelling taxpayers. The Office of the Assessor doesnt have the funding to pay for enough staff to care. Do not take it personally, its never personal and the Assessor is NOT out to get you. The Assessor’s Office will help you as much as possible, however with the work load they have there is not the time to deal with your feelings and break down the relevant laws, exemptions, statutes that pertain to your specific assessment.

You need to be the one to take control, since no one knows your property and your real estate market value better than you do. The only knowledge you are missing to reduce your assessment is what knowledge pertaining to your home is relevant specifically to lower your property taxes. If you have the information needed to lower your property taxes and you hand that data to the Assessor’s Office Im confident your property taxes will be lowered! When you take charge, you assist yourself and you also help help Assessor’s Office help you! They key to lowering your property taxes is to understand the process and know what data you need to provide to the Assessor. The process is much simpler than you think.

Many property owners I have spoken to do not want to touch their assessments with a ten foot pole! There is nothing to be afraid of. Property Tax law in each state, including California (where we like to make things difficult), is extremely easy. They key is understanding three aspects of your property taxes: property tax law, appraisal and assessment practice. Take it from the property tax expert who worked in all sides of the process and spent years being educated on it. It is easy. Assessments are simple. The keys to lowering your assessment are in your hand, time to put them in ignition, turn on the car and drive. All information sold by Property Tax Little Black Book, LLC is guaranteed and if you arent satisfied with it for any reason, you will be refunded completely.

About the Author: Valerie Faltas, Property Tax Expert has been involved in all facets of real estate for over ten years including assessments, appraisals, estates and trusts, investing and much more. She is a Certified Property Tax Appraiser, Licensed Residential Appraiser and a member of the International Association of Assessment Officers. As a real estate investor and adviser she is well versed in all aspects of real estate. To contact Valerie Faltas go to her website: www.propertytaxlittleblackbook.com

So what is the largest term in the English language? No, I’m not speaking about the lexis with the most letters or even the word that’s the hardest to speak. I’m speaking about the word that’s virtually to turn into one of your favorites. And that’s the word “because” Yes! Because this language can seemingly run wizard in persuading the recipients of your postcards that using your service is the most advantageous measure they could almost certainly go to.

Perhaps this is the most persuasive word in the English language. Don’t take my word for it because the persuasive strength of this seven-letter word has already been tested through an ingenious experiment. And it passed the test with flying colors.

A psychologist, questioning as to what just driven individuals to doom actions, placed an individual at the back of a contour of grouping waiting to multiply documents at a public copier.

Now, imagine standing in a line - a fairly lengthy line at that - all with the same mission: to make copies of whatever they have in hand. The individual planted in line by this psychologist first asked the person in front of him if he could get ahead of him in line - without giving a reason.

As you can envisage, the reply was no. And the man asked this mode several times to several grouping in various varied lines. Overpoweringly, the result was no. But then the examiner provided the man in front of him with an explanation for the demand. And he utilized the ultimate (yet influential) word “because.” The optimistic salutation developed spectacularly.

Next, the researcher asked the actor to offer a reason introduced by the word ‘because’ and the percentage of customers who responded positively significantly increased.

Well, everyone else in the row had to make copies as symptomless. That’s why they were in that genealogy to commence with. Imagine the assault of the psychologist conducting the study when you saw these outcomes. So what does this implies to you and specifically to your card transmittal? Plentitude! Conceive roughly it for virtuous at the moment.

So why not increase your success rate in your real estate postcard marketing, by using ‘because’?

Boost your prospects response rate by giving them reasons/benefits to positively act on your offer and by using the word ‘because’ to introduce these reasons/benefits.

Use the expression because for your own benefit in your next mailing even if the reasons you rank after it seem totally palpable to you. Why? Because it proves!

So what is the largest term in the English language? No, I’m not speaking about the lexis with the most letters or even the word that’s the hardest to speak. I’m speaking about the word that’s virtually to turn into one of your favorites. And that’s the word “because” Yes! Because this language can seemingly run wizard in persuading the recipients of your postcards that using your service is the most advantageous measure they could almost certainly go to.

Perhaps this is the most credible morpheme in the English faculty. Don’t interpret my remark for it because the compelling power of this seven-letter word has already been proven by a creative experiment. And it passed the test with distinction.

A psychologist, curious as to what exactly motivated individuals to certain actions, placed an individual at the back of a line of people waiting to reproduce documents at a common copier.

Now, think that you are in a line, a long line it is, all with the corresponding work: to achieve copies of whatsoever they encompass in cooperation. The person in front of this psychologist initially asked the man before him if he could get to the fore of him in series without giving any reason.

So the researcher asked the actor to talk to the people ahead of him and asked if he can go first, without offering a reason. Of course, the other customers replied negatively.

Next, the researcher asked the actor to offer a reason introduced by the word ‘because’ and the percentage of customers who responded positively significantly increased.

Next the researcher just asked the actor to offer an unconvincing reason with the word ‘because’. The researcher was amazed because it still worked! You know what the reason the actor used? It was just “because I want to duplicate some docs.” Totally unexpected but this how most of us respond to the word “because.”

So why not increase your success rate in your real estate postcard marketing, by using ‘because’?

Judge nearly how your salutation rank can glide when you use such phrases as: “Advertising to me firm is the wise decision for you because you’ll have the cash you need “Advertising your abode today is the solitary option because it gives you peace of mind.”

Use the word because to your advantage in your next mailing even if the reasons you place after it seem totally obvious to you. Why? Because it works!