ORANGE COUNTY, CA-In a ruling that could save property owners millions of dollars but exacerbate the budget shortfall faced by state and local governments, a Superior Court judge here has ruled that tax assessors across the state have improperly assessed the value of many commercial buildings and homes.
The decision stems from Proposition 13, the landmark tax-revolt initiative that was overwhelmingly approved by voters in the 1970s. The law generally prohibits counties from raising a property’s tax bill by more than 2% a year, and bans annual increases altogether when real estate values don’t rise.
The case before Orange County Superior Court Judge John M. Watson involved a homeowner who also is an attorney. The lawyer, Robert Pool, paid $330,000 for his Seal Beach home in 1995.