RIVERSIDE – Despite an overall increase in property values of more than 6 percent, the average owner will not see a commensurate increase in property taxes, according to Riverside County’s Assessor-County Clerk-Recorder.
All sectors of Riverside County's real estate market grew in the fiscal year that ended June 30. Assessor-County Clerk-Recorder Peter Aldana announced today that the taxable value of all property in Riverside County for the current year is $286 billion. This year's tax roll will generate more than $2.8 billion for local government services.
“Rising property values are good news,” Aldana said. “Property owners enjoy greater equity, and more money is available to provide services to local residents.”
Low inventories pushed home prices to record highs as fiscal 2017 ended. CoreLogic, a real estate information services firm, reported a 7.4 percent rise in median home prices. Rising employment drove vacancy rates down, and rents up, in the commercial office market. New industrial construction grew as the logistics sector demanded more warehouse space.
Despite the increases, most property owners will not see an equal rise in property taxes. The assessor enrolls most properties at their Prop. 13 value and taxes typically can increase by no more than 2 percent per year. The assessment roll lists all taxable property within Riverside County and identifies the property, the owner and the value as of Jan. 1. State law requires the assessor to complete the roll before July 1 and to enroll the property at current market value or at the lower value under Prop. 13, adjusted for inflation.
Another measure, Prop. 8, requires the assessor to reduce a property’s value when its market value falls below the Prop. 13 value. The assessor reduced more than 159,000 such properties for the fiscal year that began July 1. Because of higher real estate values, that number was down from the 201,000 adjusted last year. As a property’s market value recovers, the assessor must restore any previous Prop. 8 reductions. Property tax bills, which go out in October, notify owners about any changes made pursuant to Prop 8.
Although the assessor works to enroll fair-market values, an owner might disagree with the valuation. Those owners may file a free decline-in-value application online. Applications are due by Nov. 1 and are available at www.asrclkrec.com. Property owners may review their assessment roll value by visiting the Assessor’s website at www.asrclkrec.com or calling (951) 955-6200.
Property owners also may request a formal hearing before the Assessment Appeals Board. The deadline to file is Nov. 30. The application is available on the Clerk of the Board’s website at www.rivcocob.org.