Great news for homeowners and homebuyers in Malibu!
A reduction in statewide property taxes will occur for the first time in 30 years, according to the State Board of Equalization. The deflation will be about .24 percent, which means a reduction of about $2.60 per $100,000 for a Malibu home. Exciting news!
Homeowners in Malibu saw an increase of 5.9% for the 2008-2009 property tax year and this drop, while small, will mean a decrease in the bill by around $14 for a home worth $500,000 – These adjustments are expected for October 2010 bills across the state. However, some Malibu property owners will not see a decrease in their tax, if taxes have already been reduced due to assessed value decreases and homeowners who received tax relief from property damage of more than $10,000 due to a fire or other natural disaster this year also may not see a decrease – The Los Angeles County Assessor’s Office will review individual parcels of land beginning in January for a decline in value.
This landmark reduction is due to Proposition 13 that requires property to be taxed annually on the price of fair market value. The 1978 amendment mandated any increase to be capped at 1 percent of a home’s value, and at no more than 2 percent per year, despite California price market fluctuations of up to 25 percent in the past. Since the passage of Proposition 13, rates have increased each year.
Of course, while great and encouraging news for homeowners and homebuyeres for local councils it means budgets take a hit. Malibu’s city council relies on property tax income as around a third of its budget, however, Malibu has weathered recent declines in financial support from state and federal sources very well. The city had approved its 2009-2010 fiscal year budget in June and included expense reductions (terminating three city positions, totaling $300,000, and decreasing city salaries by a total of $15,000) and fee increases after determining in April that its 2008-2009 fiscal year budget was $1.2 million less than originally projected. For additional revenue, the city also began on July 1 collecting Transient Occupancy Taxes of 12 percent of rental income from private homes leased for 30 days or less.
More on this in the new year as it is put into practice and the effects are felt.
If you are interested in purchasing a property or selling a property in Malibu, Pacific Palisades or the surrounding Beverly Hills/southern California area then please contact Judy Kunisaki for professional real estate advice in the Westside Los Angeles area, on 310-317-8396 or via her online contact form on her website.
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Judy Kunisaki – CA DRE license 00963582
