Assessed Property Values in Riverside County to Rise

Median home prices in Riverside County improved by more than 25 percent in calendar year 2012, propelling a 3.95-percent increase in Riverside County’s tax roll for the 2013-14 tax year. Overall, assessed value in Riverside County will increase from $204.89 billion for the 2012-13 tax year to $212.98 billion for the 2013-14 tax year, Ward said.

The increase means local governments receive more property-tax revenue to help pay for community services. Rising home values benefit homeowners too, as home equity grows. Studies show that rising values increase consumer confidence, which can lead to greater consumer spending that will help spur economic recovery. The increase also may mean more home sales, because rising prices can entice homeowners to sell their homes to purchase “move-up” homes.

Though the median sale price has increased by 25 percent in Riverside County, most property owners will not see an equivalent increase in their property taxes. Much of the median price increase can be attributed to a broader mix of homes selling in the market.  Unlike during low points of the recession, sales of higher-end houses have increased greatly, contributing to the upturn in median sales price.

A substantial decline in foreclosure-related activity has also significantly affected Riverside County’s improved real estate market. Fewer foreclosures reduced the number of homes for sale and increased competition for available homes, pushing prices higher. In addition, rising valuation will increase values for some commercial property types, specifically apartments and large warehouses.

Under California’s Prop. 8, the value of about half the properties in Riverside County was reduced in recent years to help keep values in line with the depressed housing market. Under the law, as economic recovery propels sales prices, valuations lowered during the recession must increase to match the subsequent upswing in the market. In that situation, property taxes on those properties may exceed the standard 2 percent annual cap set by Prop. 13.

Despite the overall increase, many properties still remain below their Prop. 13 value, and well below peak values. Under state law, assessed values can be lowered temporarily based on a property’s value on Jan. 1 of each year. Changes in the real-estate market can affect subsequent assessed values and Ward said his office continues to review individual properties for potential changes in value, which can affect property taxes. The review is a critical process in completing the assessment roll.

Beginning July 15, Riverside County property owners will be able to view their 2013-14 roll value online at www.riversideacr.com. Properties can be searched by address or parcel number.  Property owners whose assessed value has changed this year will receive a notice from Ward in their regular tax bills for 2013-2014, which will be sent in October by Treasurer-Tax Collector Don Kent. (The attached file includes a full report on assessed values in cities and unincorporated areas, as well as historic data on assessed values in Riverside County.)

Property owners who disagree with their property’s assessed value may file a free decline-in-value application online. Applications are due by Nov. 1 and are available at www.riversideacr.com.

Property owners disputing the value set by the Assessor’s office may file an appeal with the Riverside County Clerk of the Board until Nov. 30.  An application to appeal a changed assessment is available on the Clerk of the Board’s website at www.rivcocob.com.

For more information, visit www.riversideacr.com or call (951) 955-6200 or toll free (800) 746-1544.