Property Tax Question

4 Replies

I am helping analyze a single family deal in which a family owns 50% of the house and is considering buying the other 50% from their relatives. My question is: what happens to the property taxes on the 50% that is being bought? Does that 50% get bumped up to reflect the current FMV of the property? Does the tax on the entire house get bumped up to FMV?

Sonoma County, CA

@Jeff Minc The Sonoma County Assessor is quite offensive with their assessments as property taxes are the lifeblood of the local municipalities. 

A good exercise is to fill out this Preliminary Change of Ownership report (PCOR) which you can find on the County's website: http://www.sonoma-county.org/Assessor/HTML_Documen...

It is smart to submit a PCOR with your real property recordings to better clarify your case with the Assessor and any reassessments they might perform. With that said, the Assessor will probably do whatever they want. 

You will see that Part 1 on the PCOR linked above contains possible exclusions from reassessments for certain types of transfers. Item M in Part 1 is probably the one that pertains to your situation. 

If you message me the property address, I should be able to look up the last time the property was assessed. If the last assessment was recent, then your clients shouldn't worry too much about reassessment adding a substantial amount of taxable value. 

OK great thanks for your help. We will not be moving forward with the deal due to other concerns but thank you for the insight.

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