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Decline in Value (R&T Sec. 51) Qualifying Examples

Example 1

  • I purchased my home in the early 1990s
  • The total assessed value on my 2014-15 property tax bill is $388,082.
  • The market value of my property on January 1, 2014, was $640,000.

Your property in this example does not qualify for Decline in Value (R&T Sec. 51) relief, as the assessed value is lower than the market value. This type of property tax relief generally applies to more recently purchased property.

Example 2

  • I purchased my home in July 2005 for $500,000.
  • The total assessed value on my 2014-15 value notice or property tax bill is $543,998
  • Sales of similar model homes in September through December 2013 were $500,000

Your property in this example may qualify for Decline in Value (R&T Sec. 51) relief, as the sales of comparable properties indicate that the market value on January 1, 2014, is lower than the assessed value.

Example 3

  • I purchased my home in September 2013 for $600,000
  • The total assessed value on my 2014-15 value notice or property tax bill is $600,000.
  • Sales of similar model homes in January through March 2014 were $600,000.
  • Sales in September and October of 2014 were $570,000 and current listings for sale are even lower.

Your property in this example does not qualify for Decline in Value (R&T Sec. 51) relief for the 2014-15 tax year, as the assessed value is not lower than the market value on January 1, 2014. However, you may qualify for Decline in Value (R&T Sec. 51) relief next tax year 2015-16, if the market value on January 1, 2015, is lower than the assessed value as the recent sales may indicate.