Perhaps our reader’s 25.7% drop in assessed value for 2009/10 was actually low. From the Chronicle:
Owners of more than 4,000 homes and commercial buildings [in San Francisco] have appealed to the city to have the assessed value of their properties lowered to reduce their taxes. There were 1,200 appeals last year and 300 the year before that.
The total value of those 4,000-plus properties is about $25 billion…[and] the average of the requested reductions is 40 percent, but they have yet to be settled.
We believe there were actually 1,673 appeals last year (versus the Chronicle’s reported 1,200), 810 of which were granted with an average reduction of 11.5%. Unfortunately we don’t have the average for what was requested last year for an early apples to apples comparison.
∙ A 25.7% Drop In Assessed Value For A Plugged-In Reader In 2009/10 [SocketSite]
∙ San Francisco union workers facing layoffs [SFGate]
∙ Average Granted Assessed Value Reduction In San Francisco: 11.5% [SocketSite]
…and so begins the next round of budgetary woes for the city.
So as revenue is cut via Prop 8 property tax relief… do you think the boneheads, i.e. the board of supervisors will get it? Think they will cut back on the generous hand outs to their “not for profit” buddies? Next year is going to be a blood bath during the cities budget process. In stead of laying off this year they have been patting themselves on their back for saving jobs. As much as is going to hurt it’s about time some cold water was thrown on the wild spending that been going on at city hall for years. 6.2 Billion dollar budget that’s $6,200,000,000.00 Ouch!
They asked for it. Everyone I know who has asked for an appeal did it because the city raised their value. It goes something like, “If they had just left it unchanged I wouldn’t have bothered. But to raise it this year, that just pissed me off.”
Yep, I fall into the pissed off camp. I was actually successful in getting a reduction last year, but this year they took back the redux AND added the usual 2% increase on top of it. I actually don’t think my value has dropped very much at all, but the crazy whipsaw appraisals make no sense…WTF?!
A SOMA loft purchased in 2003 $545k. They had raised it to about 620K this year and showed them 3 nearby comps which average $480k ish. They dropped me back to my purchase price. Next year I will compare again.
Good for those who got their prop. taxes lowered. I, for one, am glad that the City will have much less money in their budget and will have to deeply slash their payroll and benefits.
So far there are still a lot of overpaid, useless, do-no-work type city workers who need to be fired.
What are the (bad) consequences of getting the assessed Tax value reduced ?
I have 1 unit in a TIC building that I have been able to successfully rent out (after taking advantage of the TIC agreement provision to allow renter in 1 of the 7 units).
So can I get my taxes reduced ? Or because it is TIC building, do I have to get board approval and apply for entire building ?
Also, what are bad effects if I see the unit off to raise ca$h for my dream victorian in Pac. Heights 🙂 ?
Lance, they don’t “take it back” the appeal is only good for the year you appealed. The only way to change the base taxable value is to appeal the base year.
We have every right to have our taxable values reflect what the actual values are. My taxes were cut by almost 17% through the assessment appeals process. That will help supplement my kids’ private school education.
“Lance, they don’t “take it back” the appeal is only good for the year you appealed.”
I’m well aware of how it works, but the trend should at least be consistent. It doesn’t make much sense that they would lower my value by 10% one year and then increase it by 12% the next –barring some big pickup in property values. And we both know that hasn’t happened recently.
Chad: I’m not familiar with the TIC process but as I see it, there is no negative consequences for reduction in the taxable value of your property. It plays no significant role when you go to resell. (That is purely driven by the market conditions at the time.)
I received a 20% reduction on my taxable value for a SFH in Glen Park. Interestingly I was not able to find comps to support such a big reduction but I’ll take it. In contrast I have property in Oakland that has fallen by at least 25% and Alameda County refuses to drop the value. Go figure!
Thanks Willow !