Property tax in California

[bhpig]

Hello,

I am a newbie to TUG and just got back from Ko Olina (Wonderful). I actually bought and after doing my reseach on TUG, I just sent my request to rescind. I am looking to buy in California where I live. I was told that in addition to maintenance fees, you are required to pay California property taxes. Is this true and if so, how much for any of the Cali Marriott resorts (i.e. NCV, Palm Springs). Thank you for your help.

 

[cp73]

I just purchased last year and haven't gotten my first tax bill but I am planning on about 1.25% of the purchase price per year....

 

[ZCar]

Our Desert Springs Villas II, Palm Desert CA was around $120, billed separately by Riverside County. Possibly this may vary based on actual purchase price?

 

[bhpig]

Thanks for the information. I can't figure out why my friend says he's paying almost $800 anually for a NCV resort he paid $23,000 for two weeks every year.

 

[californiagirl]

The $800.00 is most likely his annual maintainence fees. I'm not sure whether or not that includes property taxes. Some properties include it in the annual fee and some do in separately. Someone who owns NCV could give you a definite answer.

 

[riverdees05]

I pay property taxes in South Lake Tahoe, CA separate from the Maintenance fee at the Lake Tahoe Vacation Resort. Last year mainenance was $540 and taxes were $164 for each week.

 

[camachinist]

NCV is roughly .66% of developer price, if purchased "new". The assessed value increases 1% per year, IIRC. We got a supplemential assessment for our first year of ownership there, as we didn't pay taxes in that year.

Resale intervals should be 1% of recorded sales price, plus any local assessments, which vary by location.

MF's at NCV for 2006 were 704.00 per EY interval.

Pat

 

[Dave M]

That $800 likely includes property taxes. Maintenance fees for 2006 are $704.05. Property taxes, which in California are paid by timeshare owners directly to the taxing entity, are typically about $80-$90, but vary significantly by unit and depend on a number of factors.

 

[camachinist]

Dave, sure wish I had gotten NCV for a price that would generate a 80.00 tax bill every year

Pat

 

[dvc_john]

I own timeshares in 5 states.
In Florida, Hawaii, Nevada, and South Carolina, property taxes are billed as part of maintenance fees.
In California, property taxes are billed separately by the county government.

 

[turkel]

Resale intervals are not based on resale price. I just got notified by the county of Riverside that my assessed value is $5000plus more than what I paid and $1500 more than the previous owner was assessed. I paid last years taxes at the p. owners rate of $134, I am expecting this years bill to be $150plus. When I called the county and inquired why it was assessed so high they said it was fair market value not purchase price at which they base the value. This puts my 2bed @ $584,000.

 

[taffy19]

I read here on TUG that Liz got it reversed!!! Get your paperwork handy and submit it to the county tax office and they will correct it. That is good information to know and to remember!

 

[camachinist]

Yes, appeal it. The price paid is fair market value. It is where a buyer and seller have a meeting of the minds and fair compensation is exchanged. Government is greedy because they can be. Don't let them.

I paid almost 100K under assessed valuation for my house. Trust me, I paid taxes on what the purchase price was Of course, after 20 years, it's now back up to what it was once assessed at.

Pat

 

[cp73]

I just got notified by the county of Riverside that my assessed value is $5000plus more than what I paid and $1500 more than the previous owner was assessed.They said it was fair market value not purchase price at which they base the value.

Same story with mine...Only I called and asked for the form to protest the valuation amount. I need to mail that in this week. Proprosition 13 said it should be based on purchase price.

 

[voyager1]

Same story with mine...Only I called and asked for the form to protest the valuation amount. I need to mail that in this week. Proprosition 13 said it should be based on purchase price.

In actuality California Revenue and Taxation code (under the section on Proposition 13) that the taxable value is based upon fair market value (not purchase price). Market value is determined by an "open market arms length transaction where neither buyer or seller takes advantage of the exigencies of the other party.

Consequently, the assessed value is sometimes higher and sometimes lower than the actual purchase price. The basis for that terminology is to prevent John Doe and Sue Smith from buying virtually identical properties for vastly different prices resulting in disparity in assessed values. The Board of Equalization (the government agency in California responsible for the R&T code) is very specific in the interpretation of taxable value.

Anyone can appeal their taxable value following purchase by contacting the office of the County Assessor in the County the timeshare is located in. The appeal is not always successful. Different counties view appeals differently. If there is a substantial pool of comparable sales for a unit at a higher purchase price than what you pay, they will probably not back down. On the other hand if there is low market turnover, or a evidence of general depreciation of the timeshare property as a whole, they will most likely back down.

 

[camachinist]

So, if a seller agrees to a buyer's offer and obviously doesn't have a gun held to their head, and a purchase contract is subsequently signed, that would constitute and arms-length transaction.

Let's take an extreme example. A seller is going bankrupt and the bank forecloses on the mortgage and auctions the property from the courthouse steps. A buyer pays cash at a substantial discount. Is that fair market value, as the sale was advertised and anyone could bid?

I have purchased real estate under both the above examples and have always been successful in getting the assessed value reduced.

I hate government double-speak.

Pat

 

[voyager1]

The reality is that dealing with the various California counties and taxation is more or less like talking to different guides at RCI. Although all counties should be on the same page, they rarely are. The counties with heavier workloads are more likely to interpret the R&T code loosely since the manpower isn't there to assemble the facts and figures necessary to fight the appeal. Size of the county isn't a determinant, rather it is the number of appraisers in the office versus the volume of sales and prevalence of construction in the area. An appeal that "goes the distance" must be heard in front of the appeal board and both appraisal and legal documentation must be presented by both sides. In some cases the discrepancy in value is too little to justify the time spent. In other cases there is sufficient data for the county to substantiate their original value. Last, but not least, some counties (San Francisco for example) are so far behind in their State mandated appraisals that they won't take the time to follow up.

As a taxpayer I also hate the complexity and red tape in the tax laws. Having spent many years having to study, interpret and explain to taxpayers the nuances of the codes I find them very frustrating. If you think of the IRS and the difficulty in understanding all of their complex codes, your local county assessor is doing the same thing with the State Board of Equalization codes.

 

[JimC]

Resale intervals are not based on resale price. I just got notified by the county of Riverside that my assessed value is $5000plus more than what I paid and $1500 more than the previous owner was assessed. I paid last years taxes at the p. owners rate of $134, I am expecting this years bill to be $150plus. When I called the county and inquired why it was assessed so high they said it was fair market value not purchase price at which they base the value. This puts my 2bed @ $584,000.

How is FMV different than the price you paid on the open market? Possibly they are using the current developer price?

I just paid my supplemental bill for last year for the reassessment they did after closing. Marriott had paid the first installment and I paid the 2nd. The total of prior payments and reassessment are about $200. Probably more than I should be paying but not enough to take the time and effort to appeal.