Law Backs Rise in Home Value

* Homeowners who bought their homes before 1988-89 are having some understandable concern and confusion about having 2% added to their last year’s Assessment Roll Value.

The California Constitution and laws require that the 2% be added each year. The 2% showing up on many 1993 Assessment Roll Values is driven by the California Consumer Price Index (CPI). The land, homes, and other buildings must go up 2% in any year the CPI goes up 2% or more.

Your property value will drop to market value only if the market data for your property shows that your property value is above its market value. The market value remains the maximum value to appear on the assessment roll.

A general drop in the market does not necessarily affect a particular value.

Only sales data related to a particular property indicates its market value. And, the 2% can be left off of the value only if adding that 2% would push that property over its market value.

Proposition 13 has held most property values to less than market value. That is because during the years of rising market prices only 2% was added to the previous year’s value.

BRADLEY L. JACOBS

Orange County assessor

Santa Ana