The property tax bills that have started hitting mailboxes this week are among the few things that haven't fallen in this economy – at least not for most homeowners.
The bills have left some homeowners asking, are there options?
The answer: surprisingly few.
Counties can't do much to help, and the state – facing its own well-publicized budget woes – probably won't.
Property owners can appeal the assessed value of their home, and hope it goes down. Or they can put the tax bill on a credit card to delay paying it now.
Those who don't pay could run up against interest and late fees.
"Everyone is getting hit by this because they're short of money," said Joe Ortiz, who just got a $2,700 property tax bill. "It's really outrageous."
Many homeowners, like Ortiz, had assumed their property taxes would fall in the wake of the housing crisis – a small measure of relief in the face of tumbling stock prices, shaky pensions and general economic fear.
But the assessed value on most properties was still less than the market value as of Jan. 1, the date the assessor considers when valuing a property. As a result, most homeowners saw their normal annual increase in property taxes, as part of California's landmark Proposition 13.
That 1978 initiative rolled back assessed values to 1975 levels and capped the annual increase at 2 percent. Properties are reassessed when sold or the living area is enlarged.
"When property values go up, very fortunately, the Prop. 13 system protects homeowners," said Peter Detwiler, staff director for the state Senate's Local Government Committee. "When the air goes out of the system, it doesn't protect people as much."
The state statute provides little flexibility for paying property tax bills, county tax officials said.
Owners can pay either their entire tax bill by 5 p.m. Dec. 10, or can pay half then and the rest by 5 p.m. April 10. Late payments result in a 10 percent penalty.
Residents who default on their tax bills can ask the assessor to be put into an installment plan, which carries additional penalties.
Only the state Legislature has the power to provide some relief for taxpayers.
But tampering with the stream of income from tax revenue would have its own costs.
Homeowners might not suffer as much from the size and timing of the payments – the first installment being due just before Christmas and the other right at tax time – if they could pay in quarterly or even monthly installments, said Jenine Windeshausen, the Placer County treasurer and tax collector.
Such a change, however, would not be easy. State and local cash flow projections are based on the timing of property tax payments and the logistics of such a change would be tricky, said David Kline, director of communications for the California Taxpayers' Association.
"It's worth studying, but we have to realize it wouldn't be a simple process," Kline said.
As for state aid for people having trouble paying their property tax bill? Not likely.
"There's no money at the state to provide any relief," said state Sen. Michael Machado, D-Linden. "The bottom line is we have an economic situation that is unprecedented."
Call The Bee's Robert Lewis, (916) 321-1061.
About Comments
Reader comments on Sacbee.com are the opinions of the writer, not The Sacramento Bee. If you see an objectionable comment, click the "report abuse" button below it. We will delete comments containing inappropriate links, obscenities, hate speech, and personal attacks. Flagrant or repeat violators will be banned. See more about comments here.