California Municipal Treasurers Association April 17, 2013

1. California Municipal Treasurers Association April 17, 2013 Paul Cowdery

2. Why ParcelQuest? Over 30 Years of Experience Unique “Public / Private” Partnership Reciprocal County Relationships We Speak “County Property Data”

3. Typical City Budget

4. 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

9. Proposition 13 passed The EVENTDRIVEN tax assessment era began.

11. Typical Neighborhood in 2005 Bought 1988 Tax: $2,710 Bought 1994 Tax: $3,300 Bought 1971 Tax: $970 Bought 2005 Tax: $7,100

12. Following the crash… The game is completely different!

13. It is not just about Foreclosures Relative 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! • They can return to factored base year • They can go lower • They can stay flat and eventually turnover

14. Example: City of Long Beach

15. 6%

17. 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

19. Prop-8 Paradigm has the Same Questions But 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 …?

20. Example of I-TRaC Report If The Roll Closed today… ?

22. In the new Assessment Paradigm… … The game has changed

23. Typical Neighborhood in 2020 Bought 2009 REO Sale Tax: $3,710 Bought 2015 Tax: $6,000 Bought 2010 Short Sale Tax: $3,500 Bought 2005 Tax: $7,600

24. Thank you Paul Cowdery