Prop. 13 property tax assessments will be reduced in Orange County for 2010, due to a negative Consumer Price Index (CPI) inflation adjustment of -0.237%. For the 2010-11 tax year, approximately 650,000 parcels in Orange County will be assessed at their Prop. 13 value and will get a reduction of 0.237%.
These property owners will pay about five dollars ($5.00) less in property taxes for every $200,000 in taxable value. The savings will begin with the first property tax installment payment due in November 2010.
The negative CPI is estimated to reduce Orange County's property valuation by about $500 million dollars, down from $211.2 billion to $210.7 billion. Property tax savings for Orange County property owners will total about $5.5 million.
Properties with a market value that is lower than their Prop. 13 value may get an even bigger reduction. In 2009, the Assessor reviewed the value of 280,000 properties in Orange County and implemented taxable value reductions for 202,800 eligible properties. The Assessor will evaluate real estate market conditions as of lien date (January 1, 2010), and will review the values of homes, condos, townhouses, multi-family, commercial and industrial properties again for possible assessment reductions.
Property related taxes may go down, can your tax bill go up? Many tax bills include assessments for school bonds, water bonds, Mello-Roos and other special assessments. Special assessments are managed by special assessment districts. The amount billed for most special assessments is not based on taxable value, and these assessments may increase.
For property tax purposes, California real estate is subject to a CPI inflation adjustment of up to 2% per year. The CPI adjustment is determined by the State each year, based on the change in the California Consumer Price Index from October to October. This is the first time in 35 years that the CPI adjustment will be negative. The annual CPI adjustment has been less than 2% five times during the same period.
SOURCE: WEBSTER J. GUILLORY, ORANGE COUNTY ASSESSOR (714) 834-2727