A robust real estate market may lead to surprises for some property owners as assessed property values rebound, in some cases at a rate greater than the 2 percent permitted by Proposition 13.
Proposition 8, passed in 1978, like Proposition 13, provides for assessed values to temporarily decline, along with market values.
In recent years, due to the recession, property owners enjoyed lower property tax bills due to lower assessed property values and Proposition 8.
This year, however, the Alameda County Tax Assessor reported a 7.08 percent increase in the overall assessment roll, the highest in eight years.
For some property owners, that will lead to an assessed value increase greater than 2 percent, as their property’s value approaches or tops the Proposition 13 factored base year value.
A $50,000 increase in assessed property value could translate into an additional $550 to $600 on an owners property tax bill in Alameda, when factoring in the base 1 percent property tax and other debt service items.