Happy Thanksgiving everyone. Hope you had a nice one. Now for a look at something we’re NOT thankful for. We’re not thankful for the lopsided article in the Bee today about the 9,000 property value appeals currently in the Sac County Assessor’s books, nor the suspiciously dicey manner in which the county of Sacramento Assessor’s office is valuing homes–and treating homeowners–in this intense recession we are living through.
The Bee made a huge mistake by only seeking the County’s perspective for their story. They should have interviewed homeowners whom are currently mired in the appeals process with the county. Better yet, they should have provided actual homeowner CASE STUDIES to test the validity of the county’s statements. Had the Bee done those things, I am pretty sure their article would have had a headline similar to the one I posted, instead of the generic “Property tax appeals on the rise.”
From the Bee’s article: “It’s tough times out there for people, and they’re trying to get any help they can,” said an assistant clerk to the Sacramento County Board of Supervisors.
Really? I think YOU, the county, are the ones experiencing “tough times.” I guarantee YOUR deficit is monumentally bigger than ours, the collective deficit of the 9,000 property owners currently waiting on your antiquated appeals process to send them their “hearing date.” Grrrr.
The clerk’s statement above totally validates every suspicion I have had about the county since the day I received a terse REJECTION letter from them in response to my request for reassessment earlier this year; a rejection letter that would set in motion a bureaucratic, time consuming, antiquated “appeals” process mandating my wife and I “appear” in front of their royal “appeals board” to “plead” our case.
According to the Bee: “Sacramento County reduced the assessed value on as many as 30 percent of residential units this year in the wake of the housing slump….Many more homeowners felt they deserved to have their assessed values reduced..As a result, assessors’ offices were inundated with calls after tax bills came out, and numerous property owners have filed formal appeals.”
Deceptive or misinformed? Has to be one of the two. There is no other option, because that statement does not even begin to accurately portray what is really going on. “As many as 30%”? With all due respect, if this writer actually stopped to think about what he was writing, or even had a clue what victims of the county’s property tax shenanigan were going through right now, he would have wrote “a sparse 30%.” How do I know what’s going on? Because I am one of the ones waiting on an appeals “hearing.”
The overall the tone of the article implies homeowners are merely panhandlers playing banjo for change on the street corner. Instead of aiming the accountability gun at the county and asking how they justify only adjusting a SPARSE 30% of the homes in the worst recession since the great depression? What a GREAT question the Bee NEVER asked.
Personally, I don’t care if the date range is only Jan 1 to March 31, the fact the assessor only reduced 30% of the homes in the area should be a major red flag. Sacramento region home values have been RAVAGED in this downturn and by March of this year many areas like Natomas had already taken a 40% reduction hit (and even more in many cases).
To call this recession a “slump” is another grave understatement and a total disservice to all those who are upside down 50% on their house now. Give me a break. How patronizing can these people be?
The truth is, the county is facing a huge budget deficit, and they are the ones who have fallen on “tough times.” THEY are the ones “trying to get all the help they can get” by what appears to be a wanton disregard to the actual values of Sacramento homes in this economy.
Here’s a case study for you Sac Bee:
The purchased value of my home is $365k
The county sent me a letter this year saying they reassessed my home to $335k.
The aforementioned “reassessment” was so far off I nearly choked from laughing when I read it. So..
Per the county’s web site, I printed out a form to challenge their assessment (this is NOT the appeal yet)
In the form, as requested, I included two comp properties that had sold between Jan 1 and Mar 31. One for $220k and one for $240k. They were the same exact size of mine and within a block.
In the “Your opinion of home’s value” box I put something like $220k. It’s my opinion right?
Days later, I received a letter in the mail from an assessor assistant dude with about 3 sentences. Something to the effect of “Your home could not have gone down in value that much in x number of months, so therefore *I* am rejecting your request based on your opinion of the home’s value.” It also included a note on how I could appeal.
I sent them another letter saying basically, “I only stated my OPINION, like you requested. Nowhere on the form did it say you were going to use my “opinion” as a scientific measure of the home’s value to compare to some other standard. I BEG you to look at the comps again and use your best judgment. There is NO way this home was worth $340k as of Mar 31 of this year!
They responded with another letter stating effectively, “We don’t make discretionary adjustments. We use the value stated as “your opinion” to approve or reject your request. You can appeal.” Grrr. Thanks a lot for taking some initiative! Not. I would have been happy to compromise and give them the benefit of the doubt. I would have been fine with even a MODEST adjustment like $275k. But $335k!? Are they INSANE? No, they are in the red by so many millions of dollars they may never get out.
Never the less, I went to their web site again. I could not find the appeals form anywhere. I called their office. A woman answered. I asked her where to find the appeals form on their site, she said curtly, “The web address for the form is listed at the bottom of the petition form” we sent back to you. I said “No it is not.” She said, “Sir I KNOW it is, but just for you, I will look it up to make sure.” Then she was silent and hmmmmed. Then she said, “Oh, they must have taken it off there. That’s weird.” She then gave me the address and I downloaded the form, filled it out (tiny print you can barely read and tiny little boxes no even wide enough to print an address in) and we sent it in.
Now we’re waiting for our “hearing.” A hearing that will require we take time off work, drive to the county offices (thus polluting the environment and helping clog freeway traffic–way to lead the carbon footprint reduction quest by example Sac County!) plead our case in front of the county judges, and PRAY they have mercy on us. Wonder how many hundreds of thousands of dollars in human resources taxpayers will spend for the county to field the 9,000 appeal hearings? Is it any wonder why the county’s deficit is so huge?
That is a small taste of what is REALLY going on with those 9,000 appeals the county is scheduling. My home was worth approximately $240k as of Mar 31 of this year and the county is saying it was worth $340k. THAT is what is really going on. THAT is also why they likely have 9,000 appeal requests in their books right now.
I can’t help but ask: Is the Bee even interested in getting the REAL story? I am beginning to wonder after reading this one. The Bee’s article falls well short of balanced reporting, and I believe a counterpoint article should be posted immediately so Sacramento residents can be informed about what kind of racket the county is really running with respect to reassessed home values in this downturn.
Wish me luck at my “hearing.”
The same friggin’ thing happened to me! I live over near executive airport. I am also awaiting an appeal. I thought I was going crazy! You’re right the county is screwing Sacramento residents and the Bee represented them as the good guys. Thanks for doing this story and good luck at your hearing. Wish me luck too!
Greg thanks. I know multiple people who this is happening to. I can not believe the Bee let the county weasel its way out of accountability for this major problem . How utterly irresponsible for the paper that prides itself on being such investigative journalists
I sympathize with you Joe…but two homes does not make a market. Do more research…talk to a realtor…find an average price per square foot in your area (just as you would do if you were selling)…apply what you find to your own home…then talk to the county again. You may indeed come up with the same number as your WAG, but at least you will be proving to the reviewer that you are not just pulling a number out of thin air. As a taxpayer, I would be ticked if the county assessor was actually accepting Prop. 8 decreases based upon just two other properties.
But… that’s THEIR request. THEY ask for two property comps. They even commented on them and said they were legit. Why even ask for them? What am I missing here?
You do realize home values are down 50% in my neighborhood huh Bob? You must work for the county
Joe–good to have you back online, and you know I usually agree with you, but this time I think you’re missing a crucial point. You have Prop 13 to thank for that bureaucratic morass, after all. The county can only raise taxes a percent or two a year, and can only reassess to the higher market value when the property changes hands or living space is added. That means they also lose a lot of potential revenue when property values rise (to the benefit of the homeowner). And in a few years, when the levees are fixed and the market recovers, will you be lobbying the county to reassess your property at the increased value?
Hi 6. Hope your holiday was good.
It almost sounds as though you are saying I should not want them to adjust my home value to its actual value because they will not be able to recoup that money when the economy turns and my house is worth more? It almost sounds as though the crucial point you think I’m missing is… sympathy towards the county?
Please do expound
Wait.. better yet… it sounds like you are justifying their behavior..? Help me understand?
No, not justifying or sympathizing! Just pointing out that when property values rise, the county does not benefit unless the home sells (they can’t readjust the value of your house upwards when it rises–unless you sell or improve it). What I’m calling you out on is that you’re asking for your cake, but in a few years you’ll get to eat it, too–when the property value rises back up to $350k or even $500k, but the county’s still taxing you @ $250k or whatever you end up with now. In other words, when your property value goes back up, I don’t think you’ll be the first guy in line, asking for a property tax increase based on the increased value.
Not only that, but (if I may digress) the property taxes are a primary source of school revenue. Even people like me who don’t have little rugrats running around are nonetheless paying for the schools. Lower property tax revenue = crappier schools.
I always love to help you understand. You know that, cake-eater guy.
First I’ll give you that the Bee article was complete crap. It was ink for the sake of ink with no actual journalism. In addition, their response and treatment is baloney. Why is it in this economy employees still don’t value that there are 10 other people waiting to take their job from them? I had a similar crappy See’s Candy story about our school’s fundraiser yesterday… but that’s another story.
It’s a rare day when I disagree with Joe and agree with 6 degrees! But from a different perspective, same end result.
In my head, property taxes are based on the purchase price of your home, not the perceived value. So you paid $365K and you pay property taxes on that amount. While I agree it’d sure be nice if you had paid $225K, you didn’t. I don’t think the county should be giving reassessments to anyone because the perceived value of the property has changed. I realize this isn’t how it works, but in my imaginary world, it’s how it should work under Prop 13. Since the county has no way to adjust up, it’s simply a matter of equity and social justice that it should not also adjust down.
Three years ago in the middle of the bubble I was having my cake too. We bought for under $200K when nobody wanted to live out here… and our neighbor sold his house in the boom for $450K. I didn’t pay more then because it was my “cake” for having taken a chance when everyone else laughed at us! “You want to live 3 miles from the grocery store? With no police, no fire, no stop lights and Arco Arena traffic every night?”
Add to that that we’re discussing perceived value, not actual value. I would happily propose that if you sold your house this year and you were able to sell it for $225, then you should receive a reimbursement on closing costs based on the change in actual value of the property.
Actually, having lived through a not-quite-as-bad-as-this scenario in 1990 when McClellan closures affected our values in North Highlands tremendously, we did have our property re-assessed and lowered. In fact, it was looked at every year and lowered twice before we moved.
If you succeed in getting your property reassessed through Prop 8, they can AND WILL reassess it every year thereafter…basically, you null and void any Prop 13 protections. Now for those of us in Natomas, that’s not going to be a problem for a very long time….higher house prices that is.
From the assessor’s website:
And they actually have a great example of how homeowners who do reassess would be treated annually:
So Joe, good luck with your reassessment, and let’s all hope those levee’s hold….although with the rainfall so far, it’s not looking like we’re in danger this year.
Thanks Becky. Good info!
I will not harbor any guilt whatsoever about demanding my home be lowered to the value it is actually worth. They should be happy we can’t demand they value at what it’s REALLY worth, which is a measly $180k now. Chris is 100% right. My home would NOT be valued this poorly had the city done its job. N Natomas could have been like Folsom had the city known what it was doing. But now look at it. And I’M supposed to take the heat for that? Give me a break. No guilt here
I can’t believe the stuff I am reading here. Trying to make a North Natomas resident feel bad for wanting his home reassessed ? After the way the city has pumped low income housing into the area and deprived residents the quality of life they thought they would be getting??? Gosh I thought reasonable people came to this web site. These people have sure ruined my perception. What a bummer.
Joe your article is once again spot on and I support your position all the way dude.
Joe don’t get caught up in people’s comments here. 99% of those shooting you down are not in your position. If they were they’d have a very different outlook. I happen to be one of the 9,0000 waiting for appeal too. My situation isa bit different than yours but the point is that the county is totally screwing me on my taxes and I will not stand for it either.
I do not own a home Joe but I damn sure would not want to pay taxes for a $365,000 home when my home was really worth only $198,000. That would be like paying taxes on a $50,000 Mercedes when you only drove home a $20,000 Jetta. I am amazed this simple concept eludes people. I guess they must not stand to benefit from reassess. I think you have every right to demand our incompetent idiotic county government adjust your home value to its actual worth.
Unless I missed it, the shoddy Bee article missed one elephant in the living room: how many people are simply not going to pay their property taxes this year? Not December 10th, not a little late, but go ahead and put a lien on it, Sac! late. This is going to be ugly. And the budget folks are going to put it to every responsible, bill paying resident that crosses their path. Joe, I feel for you.
Whoa… I certainly wasn’t putting Joe down. The law is the law and he has every right to ask for a reassessment. I disagree that should be available, period. That doesn’t mean that Joe somehow turned into a jerk overnight.
My perspective again-
If Grayson paid $50,000 for the Mercedes and got hit by a drunk driver while driving off the lot, should he get a partial refund of his sales tax? No. Not his fault that the drunk idiot hit him and dropped the value of his car… but the original sales price of the Mercedes was $50K. You paid for what you got.
Joe if houses were cars, all of us in N. Natomas would be arguing for the lemon law right now! Trust me, I’m 3 years into a major construction defect lawsuit that includes “Oh sorry we actually forgot to frame your front windows- they’re just balancing in the drywall….” I have a rotten, stinky lemon that would actually be better if it flooded and floated away…
I think my wording must have come out harsher than intended. My comment wasn’t intended as a put down, Joe et al. I love what you have to say–and agree with you much of the time. I think SacBlog and Becky are explaining it better than I did!
And, yes, I do have a ton of sympathy for all the people in Natomas whose home values have tanked through no fault of their own–and it does seem like Natomas is being hit harder than any other neighborhood in the area. But it’s not limited to Natomas. My neighborhood’s values have dropped a lot ton recently, too, and one of my neighbors is paying the property taxes for a house he bought 3 years ago that has an assessed value of almost double what he could sell it for today. So right now, I guess I’m just thankful that I still have some equity left in my place and that I still have work so I can pay the mortgage and bills.
Tonia is absolutely right. The county hasn’t even seen a fraction of the problem yet. In all of their infinite wisdom, in an effort to collect monies they are simply not entitled to, and by defying state LAW and failing to adjust to the correct values after appeal, worst will come to worst and the opposite is going to happen: people are not going to pay them at ALL. Nice going Sac County.
I am always open-minded and I have read every comment here, and I fail to even partially comprehend the support for Sac County given what they are attempting to do to homeowners. As if Natomas hasn’t been punished enough. Please.
Hi Joe. Happy holidays. I am behind you all the way. The county actually did reassess my home to its actual value this year (which is a miracle) but had they not I would be banging their door down too. Hang in there.
Hey Joe!
Keep up the good work! I will be back out on the streets in like a week doing my thing again.
But school comes first right now…
GO JOE!