Question #1
Question:
We are in a position that a Joint Tenancy needs to be reversed back
to the original owner. I need to know what the process is to accomplish this without being
reassessed for taxes. Can you please shed some light on how we do this with the county to
change the title?
Answer:
I don’t know the particulars of your situation, but if this was
a case where the owner had deeded the property to himself (or herself) and another person
in joint tenancy, deeding it back to the original owner should not trigger a reassessment
for tax purposes.
Under Rev. & Tax Code Section 65(b), the creation or transfer of
a joint tenancy interest is not considered a “change of ownership” for
reassessment purposes if, after the transfer, the original owner is one of the joint
tenants. Similarly, Rev. & Tax Code Section 65(c) states that if such a joint tenancy
is then terminated, the termination will not be considered a “change of
ownership” so long as the property revests, in whole or in part, in the original
owner.
Unfortunately, if the original owner is not one of the current joint
tenants, transferring the property back to him would probably trigger a reassessment.
However, the Revenue and Tax Code contains a number of other exceptions to the
reassessment rule. To determine if your transaction would qualify for one of these
exceptions, consult your attorney.
Question
#2
Question:
I just got my latest property tax assessment notice and my home has
been re-assessed. Its new value is higher than that of other houses in my neighborhood,
which have sold recently. What can I do? I want to bring my tax bill down.
Answer:
In order to have your property tax assessment reconsidered, you must
file a written Application for Reduction of Assessment with your county’s Assessment
Appeals Board. This application must include a statement of the facts on which you base
your request, along with your opinion of the property’s full cash value. In order to
be considered, your application typically must be filed no later than the 15h of September
in the year the disputed assessment notice was received. The appeals board usually
provides application forms, which simplify this process.
Once you file your appeal, you will usually be granted a hearing.
Generally, you are entitled to a hearing if the total assessed value of the property is
$100,000 or less, if it is a single-family home, condominium or cooperative, or if it is a
multi-family residential property no larger than four units. At the hearing, you will be
allowed to present evidence of comparable sales in the area. The hearing usually is
somewhat informal, although the Assessment Appeals Board must render a decision based on
legal evidence.
Be aware that the board has the power to increase your assessment as
well as lower it. However, if the Assessor’s office intends to present evidence
supporting a higher valuation, it must inform you of the proposed valuation and provide
you with the supporting evidence at least ten days prior to the hearing.
Please note that under Proposition 13 – passed by the voters in
1978 – a property is ordinarily reassessed each time it is sold. It is therefore
possible that comparable houses in your neighborhood could have lower valuations simply
because they were purchased before you bought your home. However, if your assessment is
substantially higher than that of other houses that were purchased at around the same
time, an application for reduction might be worthwhile.
