COVID-19 Impact on Assessed Values
California law, in part, requires that the assessed value of all assessable property be determined annually as of January 1, also known as the “lien date”. If the market value of a property on January 1 is less than the assessed value of the property on January 1, the assessor may temporarily reduce the assessed value to reflect the market value. This temporary reduction is often referred to as Prop 8 reduction (RTC 51). For accuracy, market value appraisals are based on real estate market data for time periods as close to the date of value (January 1) as possible.
Since COVID-19 did not cause a disruption until March 2020, nearly three months past the January 1 value date, data reflecting possible impacts to real estate market conditions and property values, will not influence assessed values for January 1, 2020 and this year’s annual 2020/21 tax bill. Declines in market value of property due to effects of COVID-19, will be proactively addressed for the next lien date effective January 1, 2021, and billed by the Tax Collector in next year’s annual 2021/22 tax bill.