Tax On Sale Price

Expert, localized Los Angeles answers provided by Heather Roy

Tax On Sale Price
	Dear Ms. Lank: I recently contacted the local tax office and was told the tax on an existing home sold in our development would be based on the selling price and not on the existing assessed value. This seems wrong, but the tax office insisted the law allows them to do this. Are they right?

	Strictly speaking, they’re not basing taxes on the sale price. What they’re doing is changing the assessed value to the sale price, and then basing taxes on that new assessment. (Same difference!) Some communities do that routinely when real estate changes hands.
	Edith Originally published on October 23, 2005

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