Supplemental Assessment at Newport Coast Villas

I recently received a Notice of Supplemental Assessment from the Orange County Assessor for my resale purchase of a Platinum Holiday Week at NCV.

Due to the change in ownership, the property was reappraised and the net taxable value increased from $16,194 to $22,000.

I was wondering if anyone else has received a supplemental assessment and if the assessed values were comparable. Would the property taxes be the same for a Gold week?

D.

Dewnay said:

I was wondering if anyone else has received a supplemental assessment and if the assessed values were comparable. Would the property taxes be the same for a Gold week?

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In California, the voters passed Proposition 13 ("Jarvis-Gann Initiative") in 1978. As a result, three identical houses, side-by-side on the same street, could pay wildly different property taxes depending on when the owners bought their houses and how much they paid. Tax assessments are based on the purchase price (or the assessed value in 1976 if there has been no change of ownership since then), with a maximum 2 percent increase per year in the assessed value.

This assessment model also applies to timeshares.

I own two Platinum weeks at NCV, which I bought a year or so apart. The taxes are different for each one because the purchase price was different for each one.

Because the property taxes vary by owner, you pay your taxes for NCV weeks directly to Orange County, not through the NCV condo association as a percentage proportionate to your ownership.

The supplemental tax assessment is normal the first year after you make your purchase.

Werner Weiss said:

In California, the voters passed Proposition 13 ("Jarvis-Gann Initiative") in 1978. As a result, three identical houses, side-by-side on the same street, could pay wildly different property taxes depending on when the owners bought their houses and how much they paid. Tax assessments are based on the purchase price (or the assessed value in 1976 if there has been no change of ownership since then), with a maximum 2 percent increase per year in the assessed value.

This assessment model also applies to timeshares.

I own two Platinum weeks at NCV, which I bought a year or so apart. The taxes are different for each one because the purchase price was different for each one.

Because the property taxes vary by owner, you pay your taxes for NCV weeks directly to Orange County, not through the NCV condo association as a percentage proportionate to your ownership.

The supplemental tax assessment is normal the first year after you make your purchase.

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This is so true!

California, including many counties and cities, are in a real financial mess so they will try anything to get more taxes from you. For your sake, read the following PDF files as it may help you to lower your taxes.

http://www.ocgov.com/assessor/pdf/Informal%20Review%202-09.pdf

http://www.ocgov.com/assessor/pdf/RequestForInformalReview-2009.pdf

I know for a fact that this has been done successfully for another timeshare in Orange County that the person bought re-sale. You have nothing to lose but it may be too late for this fiscal year but you can always try for next year!

I found the following on the Orange County Assessor website:

Proposition 13 establishes a base year value for real estate and limits increases in the taxable value. Base year value is determined as follows:

• The base year value of property acquired BEFORE March 1, 1975 is the 1975 assessed value
• The base year value of property acquired ON OR AFTER March 1, 1975 is usually the market value when the property was transferred

I always thought that the base year value was determined by the purchase price but apparently not. So if Marriott is actively making sales at NCV, it seems to me that the market value will be the average of the developer sales and resales.

According to the website, I have 60 days from the date of the notice to appeal the assessment. However, I need to present "factual evidence" that the assessment should be lowered. The evidence must show comparable sales or other real estate market data supporting my opinion of the value as of the event date, and up to 90 days thereafter.

Looks like I'm going to have to do some research. I don't think a list of eBay sales will be enough.

D.

Dewnay,

Please keep us posted. I too have recently purchased at Newport Coast. To date, I haven't received an assessment. For your records, I purchased my unit for $13,500. Good luck and happy researching!

Susan

susanmmm said:

Dewnay,

Please keep us posted. I too have recently purchased at Newport Coast. To date, I haven't received an assessment. For your records, I purchased my unit for $13,500. Good luck and happy researching!

Susan

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I too just purchased and paid $7500.

Let us know what you find out.

Bill and Susan, thanks for your responses.

Could you provide the date when your grant deed was recorded? It needs to be within 90 days after my recording for your sales data to be used for the appeal. My deed was recorded on 11/25/08.

Thanks!

Dewnay

Dewnay said:

I found the following on the Orange County Assessor website:

Proposition 13 establishes a base year value for real estate and limits increases in the taxable value. Base year value is determined as follows:

• The base year value of property acquired BEFORE March 1, 1975 is the 1975 assessed value
• The base year value of property acquired ON OR AFTER March 1, 1975 is usually the market value when the property was transferred

I always thought that the base year value was determined by the purchase price but apparently not. So if Marriott is actively making sales at NCV, it seems to me that the market value will be the average of the developer sales and resales.

According to the website, I have 60 days from the date of the notice to appeal the assessment. However, I need to present "factual evidence" that the assessment should be lowered. The evidence must show comparable sales or other real estate market data supporting my opinion of the value as of the event date, and up to 90 days thereafter.

Looks like I'm going to have to do some research. I don't think a list of eBay sales will be enough.

D.

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Why not call them to find out if a list of eBay sales would qualify? Sales had to have taken place before March 31.

http://www.ocgov.com/assessor/

The two people who told me that they had successfully lowered their assessed value for their timeshares were at sold out resorts in CA so it may be different at a resort where the developer is still selling direct? One was at a sold out Marriott and the other one was at a small independent resort. Both were bought after 1978 when Prop 13 came in effect.

The re-sale prices are still gong lower as an eBay auction just ended at $4,050 for a Marriott NCV. How much lower can they go? Pretty soon you may have to pay all the closing costs too for the buyer just to get rid of any timeshare.

Perry may be right with his prediction that values may go to zero except the value of great vacations and many priceless memories.

Hi Dewnay,

My deed was recorded on or about March 16th, 2009. If this helps and you need accurate information, I can dig it out for you.

Susan

iconnections said:

The re-sale prices are still gong lower as an eBay auction just ended at $4,050 for a Marriott NCV.

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That was for an Gold Season EOY so maybe the bottom isn't falling out yet.

Doing a Grantor/Grantee search on the Orange County Clerk-Recorder website, I came up with almost 400 records in the 90-day period after 11/25/08 where Marriott was the grantor. Assuming these were developer sales, when combined with resales, could very well result in the market value assigned by the Assessor's Office.

D.

How much

What additional charges do these amount to and are they just a one time charge?

Dewnay said:

That was for an Gold Season EOY so maybe the bottom isn't falling out yet.

D.

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Someone told me that it was an annual Gold Season sale. I looked it up and there is a little notation at the bottom of the page of the eBay auction. Have a look yourself. If this is true, then re-sale prices are in a free-fall lately!

Hi iconnections,

I just copy/pasted this from the ad:

MARRIOTT NEWPORT COAST VILLAS 2/2 TIMESHARE
GOLD SEASON - Even Year Use Newport Coast CA

Please note Even Year Use. It wasn't too apparent in the rest of the ad. Having just purchased, I really don't want to see a free fall!

Susan

susanmmm said:

Hi iconnections,

I just copy/pasted this from the ad:

MARRIOTT NEWPORT COAST VILLAS 2/2 TIMESHARE
GOLD SEASON - Even Year Use Newport Coast CA

Please note Even Year Use. It wasn't too apparent in the rest of the ad. Having just purchased, I really don't want to see a free fall!

Susan

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I agree with you but there was a little note at the bottom of the page. Why would the seller add the following note if it isn't true?

auction listing.... not so good

That auction listing certainly has contradicting information. Here are some pieces..... the ones in bold indicating annual usage.

GOLD SEASON - Even Year Use Newport Coast CA

Maintenance Fees (dollars): 420.00

BEDROOM TWO BATH, EVEN YEAR USAGE GOLD SEASON.

2 BEDROOM EVEN USAGE

Usage - EVEN

Maintenance & Taxes - $420 Yearly

Availability: Annual Usage FIRST USAGE 2010

Annual Maintenance Fee: $420 Taxes included

On Apr-19-09 at 16:45:49 PDT, seller added the following information:
This Auction is for a 2 bed Annual Gold Season .

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So based on that, I don't think that the price can relate directly to what was really sold since there likely was some confusion....

iconnections said:

Someone told me that it was an annual Gold Season sale. I looked it up and there is a little notation at the bottom of the page of the eBay auction. Have a look yourself. If this is true, then re-sale prices are in a free-fall lately!

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Sorry, I didn't see the notation at the bottom. Perhaps the confusion contributed to the low selling price.

lovearuba said:

What additional charges do these amount to and are they just a one time charge?

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The supplemental assessment represents the increase or decrease in taxable value from the previous owner's Prop. 13 value to the market value when the property was acquired. It resulted in a one-time charge that amounted to $35 in my case because it was pro-rated.

However, there is an ongoing increase in property taxes because of the higher base value. But maybe it's not enough to worry about considering the time and effort required to appeal the assessment.

D.

Lower taxable value from Riverside County

I received a similar notice from Riverside County concerning my ShadowRidge purchase (resale) from March 2008. However, they were notifying me that the taxable value went down from $14,361 to $12,846, so I will be getting a refund for fiscal years 2007-08 and 2008-09. I'm sure it won't amount to much, but I'll take what they give me since I only paid the 2008-09 taxes. I paid just a little over $11,000 at the time, so I'm happy with the assessed value.

I don't mean to hijack this thread since it is about Newport Coast Villas, but just wanted to let you know it can go the other way too.

aka Julie said:

...just wanted to let you know it can go the other way too.

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That's very interesting, Julie. It seems to me that assessed/market value should be going in the same direction at both locations.

D.

Dewnay said:

That's very interesting, Julie. It seems to me that assessed/market value should be going in the same direction at both locations.

D.

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You'd think, especially since NCV and ShadowRidge are both still under construction and in active sales by Marriott. Maybe things are more depressed in the desert.

See Oct or so Mar. posts about Des. Springs.

This same thing was discussed about Oct, maybe Nov. I started searching posts, so I could provide a link...and got caught up reading old posts! My computer is acting funny, or, I would keep searching. I think it was in regard to the Des. Springs II resort. I purchased there in Nov., so that thread caught my eye. I'm still waiting on closure on this one...one of those great ebay deals...with lots of problems... Anyway, I think Thinze3 had some useful posts on this.

Dewnay said:

I found the following on the Orange County Assessor website:

Proposition 13 establishes a base year value for real estate and limits increases in the taxable value. Base year value is determined as follows:

• The base year value of property acquired BEFORE March 1, 1975 is the 1975 assessed value
• The base year value of property acquired ON OR AFTER March 1, 1975 is usually the market value when the property was transferred

I always thought that the base year value was determined by the purchase price but apparently not. So if Marriott is actively making sales at NCV, it seems to me that the market value will be the average of the developer sales and resales.

According to the website, I have 60 days from the date of the notice to appeal the assessment. However, I need to present "factual evidence" that the assessment should be lowered. The evidence must show comparable sales or other real estate market data supporting my opinion of the value as of the event date, and up to 90 days thereafter.

Looks like I'm going to have to do some research. I don't think a list of eBay sales will be enough.

D.

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Generally and historically California assessors considered an arms length sale to be market value but they do have leeway if they chose to take it.

We bought a house on a short pay last Aug 2008 for $390,000 and they assessed it for $450,000 for property tax purposes saying short pays from banks are not representative of market value.

He went around to talk to people who owned the houses they used for appraisal figuring out what they had that ours did not(remodel kitchen, new windows, pools)

He put together the significant costs we incurred after we bought(lots of defered repairs and maint)

He submitted his packet a few weeks ago(late April) and he received a call telling him it would likely be Sept or Oct before they got to our appeal.

One of the problems you have is that if he property records show that Marriott sold 100 units in the last month at a value of $25,000 and you come up with 5 resale units at $12,500 then the average sale sale is $24,500 which is approximately what you were assessed.

Good luck trying to get up in front of an appeals board and explaining retail vs resale etc. The numbers are working against you. Personnally I would give it up and pay up. To much work for to little benefit.

Short

Don't know if things have changed, but we bought developer in 2004 at NCV and the units (we own both seasons) were assessed at .66 of the sales price. IOW, the assessed market value was (of course, increasing per Prop 13) ~66% of what we paid for them.

Pat