Santa Clara County Property Tax How to Lower Your Santa Clara Property Taxes: Insider Tips for Navigating Assessments and Appeals

 

Navigating Property Tax Assessments in Santa Clara County: What Homeowners Need to Know

As tax season approaches, homeowners in Santa Clara County may notice a yellow piece of paper in their mail. This document is an assessment from the county, detailing what they believe your home is currently worth and informing you whether your property taxes will stay the same or increase. The notice typically allows you to request a free informal review by August 1st if you disagree with the assessment.

Understanding Property Tax Increases

Let’s break down what this means for homeowners. Suppose you bought your home for $1 million a year ago, and now the market value has risen to $1.1 or $1.2 million. As the market rises, the county assessor’s office is closely monitoring these changes. They may decide to raise your property taxes accordingly. By law, under Proposition 13, the county can increase your property taxes by up to 2% annually. Proposition 13 is a California law designed to protect homeowners, particularly the elderly, from facing significant increases in property taxes, ensuring they can continue to afford their homes.

However, it's important to recognize the limitations of this law. Even if the real estate market has fluctuated dramatically, as it did when prices peaked and then dropped 10% to 20% in recent years, the county still retains the right to raise taxes up to that 2% threshold. Many homeowners are unsure whether they should challenge the assessor’s valuation, particularly if their property’s value has risen significantly.

Should You Challenge the Assessment?

In some cases, homeowners feel their property is overvalued and want to contest the assessment. If you feel your home's value has been inaccurately assessed, you can reach out to your local assessor’s office. Start by finding out who your assessor is and send them an email detailing why you believe the assessment is incorrect. Provide comparable home sales (known as "comps") and describe the condition of your home.

For instance, in my case, I bought a property that was never listed on the MLS (Multiple Listing Service). The assessor assumed it was in good condition, but the property had significant issues, including foundation problems. By presenting evidence of these issues and comparable sales of similar homes, you can potentially lower your property tax assessment.

The Risk of Contesting Small Increases

One important piece of advice: be cautious when challenging small increases. If your taxes have only gone up by 2%, it may be best to leave it alone. Proposition 13 caps the increase at this amount, but if you contest it, you could trigger a reassessment that might result in a higher increase, potentially above the 2% limit. However, if you see an unjustified increase of 10% or more, you absolutely have grounds to appeal.

Steps to Appeal Your Property Tax Assessment

1. Request an Informal Review: The first step is to request a free informal review by the date listed on your assessment (usually August 1st). During this review, you can submit evidence, such as comps and details about your home’s condition.
2. Formal Appeal: If the informal review doesn't resolve the issue, you can file a formal appeal with the county. This process is more in-depth and may require additional documentation.

If you’re unsure about how to proceed, feel free to reach out to a real estate professional or someone who has gone through the process. I’ve personally been through it multiple times and am happy to guide you through the steps.

In the meantime, take care and good luck with your assessment!