Help me understand reassessment of property for real estate tax

Discussion in 'Archived Threads 2001-2004' started by Luc, Feb 20, 2002.

  1. Luc

    Luc Stunt Coordinator

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    Can someone explain this to me. My wife and I are taking my mother's name off the title. We have already been told that the house don't need to be reassessed by the county office because she's our mother. Now, what does it means to reassess? Why do they do it and how? I assume they get the current value of your home and your new property tax will be based on the new value.
     
  2. Robert McDonald

    Robert McDonald Stunt Coordinator

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    Luc, generally real estate taxes are a percentage (millage) of the "assessed" value of the property, which is usually tied to the fair market value of the property. Most communities will automatically re-determine the fair market value of the property when ownership of the property changes hands. Since your change of ownership is within the family rather than a third person they are saying they are not going to re-determine the value of the property for taxes. This is important because in many states (I believe California is one) the property appraiser cannot increased the value more than a set percentage every year unless there is a sale of the property.
     
  3. David Oliver

    David Oliver Second Unit

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    In California your property tax is based on the sale price of the home, adjusted each year for inflation (or 2% or something like that). However, you can choose to have the value of your house reassesed and this is the new baseline. Depending on when you bought the house this may be a worthwhile thing to do.
     
  4. Luc

    Luc Stunt Coordinator

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    David, in what circumstances would you want your home to be reassessed for tax purposes?

    I suppose even if your home get reassessed to a higher value and thus higher property tax, it's no big deal because comes tax time, it'll help out.
     
  5. Scott Merryfield

    Scott Merryfield Executive Producer

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