Decline of California property values leads to first-ever downward tick due to Prop 13
SACRAMENTO, California: A California Board of Equalization preliminary estimate of a deflation rate of 0.237% means that most California homeowners will see a slight decline in their property tax bills in 2010 under the provisions of Proposition 13. The decline in taxes will be about $2.60 per $100,000 in assessed value. The estimate is based on U.S. Bureau of Labor Statistics Consumer Price Index numbers released in mid-November. The Board of Equalization must send an official notification of the decline to county assessors in December.
The announced adjustment factor will be reflected in assessments made as of January 1, 2010.
Although a downtick on property tax bills of about $2.60 for every $100,000 in assessed value is minimal in-and-of-itself, observers noted that the decline should be contrasted to a 2% annual upward tick of about $22 for every $100,000 in assessed value that has occurred in most years since Proposition 13 was enacted.