Decline in Escondido Home Values
Most Escondido home owners are aware that Escondido property values have been declining. In many parts of San Diego County, the decline has been relatively dramatic. That decline may mean a reduction in Escondido property taxes, however. Proposition 8, a constitutional amendment passed in California in 1978, allows a temporary reduction in assessed value (which is what your Escondido property taxes are based on) when a property suffers a “decline-in-value.” That decline in Escondido home value occurs when the Escondido real estate market value of the Escondido property is less than the assessed value as of January 1st. Does a decline in a property’s market value require a reduction in Escondido property taxes? The answer is that it depends on the Market Value and the Taxable Value.
- Market Value – Is how much the property would sell for (the unconditional sales price)
- Taxable Value – Is established by the Assessor, (the Prop. 13 value), and this value may be increased by a
CPI factor of up to 2% per year as specified by California laws
A temporary reduction in Escondido property taxes can only be granted if the Escondido home Market Value falls below the Prop. 13 value (Taxable Value). Some property purchased in 2005, 2006 and 2007 would be the most likely to qualify. Property is valued for property tax purposes each year as of January 1. If you’d like information about recent comparable sales in the Escondido real estate area to see what today’s value may be, simply contact Gary Harmon, your Escondido Realtor. I’d be happy to help you!
