The Process of Placing a Value on Property for the Strict Purpose of Taxation

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Properties are evaluated in a very strict manner for the purposes of taxation. Learn about the process of placing a value on property for taxation with help from a licensed California real estate broker in this free video clip.

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Video Transcript

The process of placing a value on property for the strict purpose of taxation. Hello, I'm Jack McLaughlin, licensed broker and president of My Broker Donates. Today, we're going to talk about how properties are evaluated for the strict purpose of taxation and as always I want you to remember the first rule of real estate no surprises. In general it's the county assessor's duty to determine taxable valuations. She then sends the information to the tax collector who determines your tax according to a pre-determined formula and sends you a tax bill. Most property taxes are ad valorem um or based on the market value of the property. Avoid surprises by knowing these three general times that property taxes can change. One on sale, when a property is sold or transferred the county recorder notifies the assessor of the sale's price. This is where the ad valorem comes in because the best argument for what your property is worth is an arm's length sale. Two, when there is a change to the property, changes can be many, but a couple of examples are destruction as in a fire or improvement. If you plan to add on another bedroom, know that it will cause your taxes to go up. Upon request of the owner, why would an owner ask the county to reassess his property? As home prices drop following the crash of '08, many owners appealed to their local officials and got their taxes lowered as a result. We're brokers not attorneys or tax experts, if you have specific questions, contact a local realtor or real estate professional. If you don't know one, we can connect you to a great one for free. Thanks for tuning in and remember, have fun with real estate.


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