Imperial County Assessor's Office
Real Property
The California Constitution requires that all property be taxed, unless otherwise exempted under the California Constitution or United States Constitution. Article XIII-A of the California Constitution requires that real property be reappraised only when such property undergoes a change in ownership or has new construction (per Proposition 13).
The assessment roll, and tax bills, show land values and improvement values. "Improvements" include buildings or anything of a structural nature (such as swimming pools, paving, etc.). When you have an "improvement" value, it doesn't usually mean that you have recently "improved" your property.
Proposition 13
The general tax levy for all agencies cannot exceed 1% of the property's assessed value, except for additional taxes for bonded indebtedness. In addition, agencies may levy direct assessment taxes to pay for services such as lighting maintenance, weed abatement, etc. The average tax rate is approximately 1.25%.
Real property is reappraised only when:
- A change in ownership occurs; or
- New construction is completed; or
- New construction is partially completed on the lien date (January 1); or
- A decline in value (see Proposition 8).*
*Except for these four instances, real property assessments cannot be increased by more than 2% annually, regardless of the rate of inflation.t.
Proposition 8
Proposition 8 allows the Assessor to review both the factored base-year value and the current market value of a property as of January 1 of each year and enroll the lesser value. When the current market value replaces the higher Proposition 13 value, the lower value is commonly referred to as a "Prop 8 Value". In no circumstance can the Assessor value a property higher than its Proposition 13 factored base-year value.
Although the annual increase for Proposition 13 values is limited to no more than 2%, the same restriction does not apply to values adjusted under Proposition 8. Actual market value must be enrolled as a Proposition 8 value and any subsequent increase or decrease in market value is enrolled regardless of its percentage change. However, when the current market value of a Proposition 8 property exceeds its factored Proposition 13 base-year value, the Assessor simply re-instates the factored Proposition 13 value.
Property owners who feel that their assessed value exceeds current market value should contact our office and request a Proposition 8 review. The last day to request a Proposition 8 review of the assessment on the current tax bill is October 30. Requests made after October 30 will apply to the upcoming tax year. Owners may also elect to file a formal assessment appeal during the open filing period.
Proposition 8, passed in November 1978, amended Proposition 13 to reflect declines in value. As a result, Revenue & Taxation Code Section 51 requires the Assessor to annually enroll either a property’s Proposition 13 base year value factored for inflation, or its Market Value as of January 1(taking into account any factors causing a decline in value), whichever is less.
Prop 8 reductions in value are TEMPORARY reductions which recognize the fact that the current market value of a property has fallen below its current (Prop 13) assessed value. Once a Prop 8 value has been enrolled, a property’s value must be reviewed each following January 1, to determine whether its then current market value is less than its Prop 13 factored value. When and if the market value of the Prop 8 property increases above its Prop 13 factored value, the Assessor will once again enroll its Prop 13 factored value. Prop 8 values can change from year to year as the market fluctuates up and down, but in no case may a value higher than a property’s Prop 13 factored value be enrolled.
For any given Roll Year, Prop 8 assessments may be adjusted by the Assessor no later than one year after the roll is published (normally July 1). Prop 8 assessments may also be appealed to the Assessment Appeals Board during the normal appeal periods (July 2 through November 30). Prop 8 assessment requests for reductions regarding the current roll which are denied after the normal assessment appeal period has expired cannot be appealed to the County Board of Equalization. Prop 8 assessments adjusted by the Assessor (not the County Board of Equalization) may be appealed no later than 60 days after the postmark date of the corrected tax bill or refund check.
Property owners who feel that their assessed value exceeds current market value should contact our office and request an Informal Review of their property. The Informal Review is only for the up-coming tax year, not the current year. The filing dates are December 1 through March 31. Please be aware that an Informal Review is not a Formal Appeal. To protect your rights to a Formal Appeal you must file that Appeal with the Clerk of the Board between July 2 and November 30 at (442) 265-1020. Filing this application for reduced assessment does not relieve the applicant from the obligation to pay the property taxes on or before the applicable due date shown on the tax bill.
If you need more information you can contact the Assessor's office by calling (442) 265-1300 or visit our office at 940 W. Main St., Suite 115, El Centro, CA 92243. Our office hours are 8:00 A.M. to 5:00 P.M. Monday through Friday.
Change In Ownership Reappraisals
When a transfer occurs, the Assessor receives a copy of the deed and determines if a re-appraisal is required under State law. If required, an appraisal is made to determine the new market value of the property as of the date of transfer. The actual sales price is a strong indicator of value, but it is not the only factor used in establishing the assessed market value. Sales of comparable properties are also indicators of value that the Assessor relies on.
The date of re-appraisal is generally the recording date of the deed that transfers ownership. However, the re-appraisal of property acquired by inheritance from an estate or living trust occurs as of the date of death of the former owner, not as of the date of distribution to the beneficiary.
The property owner is notified of the new assessment and has the right to appeal this value. Property owners who feel that their new assessed values are incorrect should contact the Assessor to discuss the issue prior to filing a formal assessment appeal.
Owners Must Notify the Assessor of any Change in Ownership:
The law requires the owners of any property that has changed ownership (except those caused by the death of an owner) to file a change in ownership statement when the transfer is recorded, or, if not recorded, within 45 days of the date of transfer. Failure to notify the Assessor will result in the assessment of failure-to-file penalties.
If the change in ownership was the result of a death, the law requires that the Assessor be notified of such changes within 150 days of the date of death, or if the estate is probated, at the same time that the "inventory and appraisal" is filed. Failure to notify the Assessor will result in the assessment of failure-to-file penalties.
The penalty for failure to file a Change in Ownership Statement upon a written request by the Assessor is $100 or 10% of the new base year value resulting from the transfer, whichever is greater, but cannot exceed $2,500 unless the failure to file was willful.
Change Of Ownership form is available online, or by calling (442) 265-1300.
Exclusions from reappraisals
There are several exclusions available for certain qualified situations. Please see the section titled Exclusions
Ordinarily, when most sales or transfers of property are recorded with the County Recorder, whoever records the deed also files what is known as a "Preliminary Change In Ownership Report" (PCOR) for the owner. This notice normally satisfies the reporting requirement unless the PCOR is incomplete. However, if the deed is not recorded, or if at the time of recording the owner chooses not to file a PCOR, the owner is still obligated to file a change in ownership statement with the Assessor and within the prescribed time limits.
It is important that owners notify the Assessor of any changes in ownership as soon as possible in order to avoid failure-to-file penalties, as well as to avoid potential interest charges and other possible penalties associated with resulting escape assessments. Under the current statute of limitations, the Assessor must retroactively escape assess as many as 8 prior assessment rolls if the escape was the result of the failure to file a required change in ownership statement. Such long-term escape assessments can be very problematic and expensive to resolve, and prompt filing can help an owner avoid those pitfalls.
The "Preliminary Change Of Ownership form is available online, or by calling (442) 265-1300.
New Construction
Copies of all building permits are forwarded to the Assessor by all permitting agencies in the County. Normal repair and maintenance work generally does not create a re-appraisal. In appraising new construction, the market value of the new construction is determined and is then added to the existing value of the property. The value of the existing property increases only by the value of the new construction.
Completion of new construction, which occurs between January 1 and May 31, results in two supplemental assessments and two supplemental tax bills. The first supplemental bill is for the remainder of the current fiscal year. The second supplemental bill is for the forthcoming fiscal year.