The values of single-family residences and condominiums throughout the State have been declining. While the declines in Los Angeles County have not been as dramatic as those in other parts of the State, property values have dropped in nearly every area of Los Angeles County.

How does this impact your property taxes? In 1978, California voters passed a constitutional amendment that allows a temporary reduction in assessed value when a property suffers a "decline-in-value." A decline-in-value occurs when the current market value of your property is less than the assessed value as of January 1. The assessed value is the value shown on your most recent property tax bill.

Typically, an application is required to initiate a review of your property’s value by the Assessor. However, in 2008 the Los Angeles County Assessor’s Office began doing a proactive review of single-family residences and condominiums based on an analysis of market trends in Los Angeles County. For 2008, single-family residences and condominiums purchased between July 1, 2004 and June 30, 2007 were reviewed. For 2009, the review was expanded to include single-family residences and condominiums purchased between July 1, 2003 and June 30, 2008. In some particularly hard hit areas of the county, the review included properties purchased as far back as 2000.

The 2009 proactive review is complete. 473,000 properties were reviewed, resulting in lower assessments on 333,000 single-family residences and condos. The average reduction in assessed value was about $120,000, amounting to an average property tax savings of approximately $1,300. All 473,000 owners whose property was included in the proactive review were notified of the results in writing in June.

If your property was not included in the proactive review or you own property other than a single-family residence or condo, a Decline-In-Value application will be required for a review by the Assessor’s Office. An application is recommended if you believe the assessed value of the property shown on the 2008-09 tax bill is more than the fair market value as of January 1, 2009.

Click here to see if your property has been reviewed for a decline-in-value.

Click here to download the Decline-in-Value Reassessment Application (Prop. 8).

If you have received a solicitation from a private company seeking to lower the assessed value of your property, click here for more information.

Click here to read the press release.