Good news for Marin homeowners- Marin property taxes will decline this year due to a 0.237 percent drop in the California Consumer Price Index. The reduction will amount to $2.60 per $100,000 in assessed value.
The decline is for the fiscal tax year running from July 2010 through June 2011 and is caused by a decline in the California Consumer Price Index from October 2008 through October 2009. The property tax reduction is mandated by Proposition 13. According to the Marin IJ, this is the first time since the passage of Proposition 13 in 1978 that the inflation factor has been negative.
What is Prop 13?
Under Proposition 13, the annual real estate tax on a parcel of property is limited to 1% of its assessed value. This “assessed value,” may be increased only by a maximum of 2% per year, until and unless the property undergoes a change in ownership. At the time of the change in ownership the low assessed value may be reassessed to full current market value which will produce a new base year value for the property, but future assessments are likewise restricted to the 2% annual maximum increase of the new base year value.  -Wikipedia
Property can be reassessed when a change in ownership takes place, or when a home is remodeled. The assessed value can also be reduced if the real estate market declines. Homeowners in Marin can petition the Marin County Tax assessor to reduce their individual property taxes if their home has declined in value. The request must be submitted between July 2 and October 31 and is based on the market value as of January 1.