Since 1974, the state of California has offered to reduce the assessed value of any “owner-occupied home” by $7,000. That, in turn, reduces the home’s annual tax bill. You just have to apply once, and the ‘homeowners exemption’ will be applied automatically to your assessment until you move out or sell.
According to Los Angeles County Assessor Jeff Prang, however, nearly one-third of county homeowners do not sign up for the exemption. That translates to $30 million in extra tax payments by roughly 435,000 households.”
The decrease in assessed value of $7,000 is an actual reduction of $70 to a homeowner’s tax bill. All you have to do is submit the form at the Los Angeles County
There has been discussion in the government on making the exemption for owner occupancy properties an amount viable for today and taking into account inflation. Think about this, when the Exemption was enacted in 1974 the median property value in the San Fernando Valley was $42,200. Now 50 years later the median priced home is $875,000. Using the ballpark 2000% increase in pricing the Exemption would be $140,000 vs the existing $7,000, or $1,400 on the tax bill… Now that would have “real value”…There should be more deviation between Owner-Occupied or investment properties… but at this point take a bird in the hand and file for the Exemption if you qualify.
If you are in the Los Angeles area, and have any questions or real estate sales or financing needs, feel free to contact me
Ron Henderson GRI, SRES, SFR, RECS, CIAS
President/Broker
Multi Real Estate Services, Inc.
Gov’t Affairs Chair – California Association of Mortgage Professionals (2017-2018)
Chairman – OutWest Marketing Meeting (Real Estate Education)
BRE #00905793 NMLS #310358
www.mres.com
ronh@mres.com
Specialist in the Art of Real Estate Sales and Finance
Real Estate market, mortgage rates, Los Angeles, San Fernando Valley, Conejo Valley, Simi Valley, Woodland Hills, West Hills, Calabasas, Chatsworth
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