Most Los Angeles homeowners will see a small drop, rather than a hike, in next year’s property tax bills, thanks to an unprecedented drop in the “inflation factor” that county officials use to assess property values. The drop, which will save the owner of a $250,000 home about $62, will affect about 80 percent of Los Angeles property owners, according to Los Angeles County Assessor Rick Auerbach.

The savings “affects both residential and commercial property owners,” Auerbach points out.

The reduced tax comes thanks to an arcane formula built into Proposition 13, the property tax limitation measure voters approved in 1978. Under Prop.13, taxes can rise up to two percent in years when the federal Consumer Price Index jumps two percent or more. Unfortunately, it almost always does.

Not this year. Recently, the CPI actually dropped, and the “inflation factor” the state uses to help the assessor’s office determine real estate value flipped to become a “deflation factor.” So instead of seeing an expected jump next year of $55, the owners of that hypothetical $250,000 home will see an actual drop of $7 from what they paid this year. That makes a swing of $62. “It’s not just the decrease that helps,” says Auerbach, “it’s the lack of an increase.”

About 350,000 of L.A.’s 1.7 million homeowners won’t get the reduction. That’s because they already had their property tax bills reduced when the Assessor’s Office proactively recalculated the value of homes earlier this year in neighborhoods hard hit by the mortgage crisis.

Here’s the bad news: the small savings won’t show up until the fall of 2010. The 2009 bill that Los Angeles County residents received this fall showed the usual increase. This year’s calculation was made in 2008—before the economy had headed so far south.

And, while we’re talking that 2009 bill, if you haven’t paid already, don’t forget to send your first payment to the Treasurer Tax Collector to beat the December 10 final deadline.

After all, who wants to spend next year’s tax savings by forking over late penalties now?

They look like government mailings. But they aren’t. And they could cost you up to $200 for a service you can get for free.

Supervisor Zev Yaroslavsky is warning homeowners to avoid solicitations from firms charging a hefty fee to “assist” area homeowners in filing property assessment reduction forms. The mailings come in plain, official-looking envelopes and offer to complete an evaluation of your property’s assessed value if only you’ll send them a “processing fee check or money order.” Many unwary homeowners pay the fee only to discover that the “review” is one that the county Assessor’s Office does every day for free.

If you are think you qualify for lower property taxes, you can download forms here, and visit the County’s Assessment Appeals page for full details on all aspects of property assessment, including proposed reductions. The County Assessor has already reviewed 473,000 residential properties to consider whether their assessed values should be reduced for 2009, and property owners were notified in June of the results. Property owners can also call toll-free (888) 807-2111 for assistance. “We definitely want people to know this is a free service,” says Assessor’s Special Assistant John Noguez.

One more bit of good news: In mid October, Gov. Arnold Schwarzenegger signed AB 992, authored by Assemblyman Ted Lieu (D-Torrance), which tightens the rules against charging fees in advance for companies that actively advocate for homeowners at assessors’ offices or appeals boards.

Property tax bills going out in October will have good news for some beleaguered L.A. County homeowners.

Thanks to a proactive review by Los Angeles County Assessor Rick Auerbach of 473,000 homes and condominiums, property taxes were lowered on some 333,000 of them.

By visiting the County Assessor website, and entering a street address or Assessor Identification Number, owners can quickly learn whether they’re on the list, which primarily covers residences bought between July 1, 2003 and June 30, 2008, but also included homes in certain hard-hit pockets of the County going back as far as 2000.

The homes picked for proactive review came in neighborhoods where the run up and subsequent collapse in housing prices was particularly extreme. The average reduction in value for single family homes was $126,000, which means a property tax savings of around $1,400. For condos, the value drop was about $96,000 and the tax savings this year was approximately $1,100. The free review meant that these taxpayers would get the benefits of a reassessment.

Homeowners whose properties were reassessed should have received notification over the summer. Homeowners who think the new valuation is still not accurate should contact the nearest Assessor’s district office to discuss the results. If need be, they should consider filing an appeal with the Assessment Appeals Board by November 30, 2009.

Residential and commercial owners whose properties were not reassessed but who believe their property’s assessed value was too high should consider downloading and filing the one-page Decline in Value application. Or they can call the Public Service Information line at 213-974-3211, or toll-free, at 888-807-2111. When home prices dropped so quickly and comparables not always reliable, the Assessor urges property owners to contact them. “If property owners do have more up to date information, they need to contact us,” says John Noguez, special assistant to the Assessor. “Assessor Auerbach continues to be very proactive to help property owners.”

The County’s Department of Consumer Affairs is offering a variety of information and assistance for homeowners and property owners at risk of foreclosure, trying to refinance, or otherwise navigate through today’s economic turbulence.

According to DCA figures, foreclosures jumped from 14,000 homeowners in 2007 to 40,000 in 2008, a 186% increase. Rising unemployment, expiring foreclosure moratoriums and falling property values can be expected to impact many more homeowners in 2009.

DCA can help homeowners save their homes through a comprehensive program that involves counseling, loan modifications, complaint investigations, and community outreach. For more detailed information on the range of homeowner-related programs and services DCA offers, visit the Department’s homes page.