California Municipal Treasurers Association April 17, 2013 Paul Cowdery.

California Municipal Treasurers Association

April 17, 2013

Paul Cowdery

Why ParcelQuest?

Over 30 Years of Experience

Unique “Public / Private” Partnership

Reciprocal County Relationships

We Speak “County Property Data”

Typical City Budget

Property Tax Revenue

Property Tax Estimates Used to be SIMPLE

2% Plus Turnover & New Development

What Happened?

To understand the present…

We must look to the past

Proposition 13 passed

The EVENT DRIVEN tax assessment era began.

Bought 1988Tax: $2,710

Bought 1994Tax: $3,300 Bought

2005Tax: $7,100

Bought 1971Tax: $970

Typical Neighborhood in 2005

Following the crash…

The game is completely different!

It is not just about ForeclosuresRelative to Assessed Value … It’s Complicated!

Foreclosures Reset to new Prop-13 base year values

Prop-8s do one of three… and two are bad!1.They can return to factored base year2.They can go lower3.They can stay flat and eventually turnover

Example: City of Long Beach

6%

Its no longer just about “The Appeals”

Commercial Appeals used to be “at-risk AV”Now… Everyone wants an appeal

-Tax Consultants assist Commercial property owners by presenting “comps” to Assessor

-The assessor uses a computer (CAMA System) to automatically calculate Residential Prop-8 values

Prop-8 Paradigm has the Same QuestionsBut New Answers

Do you have trend data for my City…?

Are there specific metrics I can follow…?

What will my assessed value be this year…?

If the Roll Closed Today …?

Example of I-TRaC ReportIf The Roll Closed today…

?

In the new Assessment Paradigm…

… The game has changed

Bought 2009REO SaleTax: $3,710

Bought 2015Tax: $6,000 Bought

2005Tax: $7,600

Bought 2010Short SaleTax: $3,500

Typical Neighborhood in 2020

Thank you

Paul Cowdery