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San Bernardino County Assessor Report Card

San Bernardino County

No one needs to see another chart like the one on the right. Many  (commercial property owners) will say this is not representative of the commercial property market relative to property tax assessment in San Bernardino County. We must disagree.

As home sales rose as they did for the years preceding 2007 so did the demand for related commodities.  Furniture, towels, landscaping, dishes and a whole host of other items were in demand during these years. Developers scurried to keep up with the demand to satisfy the consumer. The consumer had money from the rapidly appreciating prices. Then came the fall.

Now the consumer has no money. Houses are not selling and the commercial property market is overbuilt and highly leveraged. This is a fact. The wise among us are cutting costs wherever they can. It is also a fact that one of the highest expenses in real estate ownership is county property tax.  The Associates can cut your property taxes-or you don’t pay! But first, let’s look at the San Bernardino County Assessor’s Office.

By law, the California State Board of Equalization audits each county assessor to determine compliance with property tax law. Overall, the counties do a good job but not without deficiencies. This is where we can help. Look at the excerpts of the last audit report:

San Bernardino County Assessment Practices Survey

The assessment practices survey program is one of the State’s major efforts to address these
interests and to promote uniformity, fairness, equity, and integrity in the property tax assessment
process. Under this program, the State Board of Equalization (BOE) periodically reviews the
practices and procedures of (surveys) every county assessor’s office. This report reflects the
BOE’s findings in its current survey of the San Bernardino County Assessor’s Office.

The assessor uses non-BOE certified staff to value property.

The assessor’s written procedures fail to conform to section 170 and San Bernardino
County disaster relief ordinance.

The assessor does not file quarterly section 69.5 reports with the BOE.

The assessor inconsistently assesses California Land Conservation Act (CLCA) properties.

The assessor fails to assess all possessory interests, and erroneously reappraises possessory
interests whenever there is only a change in the annual rent.

The assessor lacks uniform procedures for valuing historical property.

The assessor fails to create separate appraisal units for leach pads, settling ponds, and
tailing facilities as required in section 53.5. In addition, the assessor fails to determine
market value for mining

The assessor’s mandatory audit program continues to be in arrears.

The assessor uses unsupported minimum percent good factors and inappropriately uses
untrended valuation factors in the appraisal of certain high-tech property types.

The assessor continues to erroneously classify manufactured homes as real property and
does not annually enroll manufactured homes at the lesser of the factored base year value
or the current market value.

========================= End of Report================================

Commercial Property Values Decline

Down 49%

If you own real property in the state of California then you know commercial property values are falling. Further, you know your California property tax  value has not.  This was a headline in late September relating to the commercial property market:

Moody’s: US commercial real estate prices resume steep declines in July

New York, September 21, 2009 — Commercial real estate prices as measured by Moody’s/REAL Commercial Property Price Indices (CPPI) renewed its steep declines and low transaction volume in July, Moody’s Investors Service reports. The CPPI was down 5.1% from June after having declined by only 1% the prior month. It is now 30.8% below what it was a year earlier and 38.7% below the peak measured in October of 2007.

We suspect that you are well aware of these factors and, in fact are here because of them. No one knows the direction of the market for the future but one thing we know for sure: property tax values in California for commercial real property is high while values are dropping. Take a look at some of the recent reductions we have achieved on different kinds of real property in the commercial California property tax market:

That is $412,108 in annual property tax savings for our Clients in the 2009 tax year. That’s $412,108 that the California state government will not get. And that is $412,108 that will go to the bottom-line for our commercial property Clients. It should be noted that several of these Clients told us when we took these properties last year that there was nothing there relative to a decrease in the assessed value. But we know that the assessed value that we work with and the fair market value that our clients know are two different things.

In California, in the commercial real property market the times are tough.  We believe they are going to get tougher.  Never in our experience has there been a greater need to reduce the expenses in the bottom line of every company in California.  California Property Tax Associates can definitely help. But only if you act.

Act now and call us at (888) 678-9TAX.

Sacramento County Assessor Office Report Card

Prices Trend Down

The chart to the left shows the dramatic fall in homes listed for sale. The fact that many who wish to sell cannot and so are hidden from the transactional analysis is seldom discussed. The fact of the matter is, the housing market is down and continues to fall, and the commercial market is in the process of following.  If you own commercial property and don’t believe this to be true simply go to the top of this page and click one of the property types such as apartments and look at the chart produced by Massachusetts Institute of Technology (MIT). The numbers don’t lie.

As commercial property values fall it becomes increasingly important to protect the bottom line. We have many Sacramento County clients for whom we have saved  hundredths of  thousands of dollars.  Each year we will continue to save them money if values continue to fall. We are the most aggressive  Sacramento County property tax company and we fight to secure our clients the lowest possible value under the property tax law.

Sacramento County Property Tax Assessor

Many of our clients and Sacramento County  property owners believe the County Assessor will automatically reduce values if warranted. In some cases this happens. But not often and not in a sufficient quantity. The Sacramento County Assessor has a big job to do and overall does it well. Nevertheless there are countless opportunities to see a reduction in assessed value that our clients wish to have in order to protect the bottom line of their company. For our residential property owners it’s much the same. Money saved and not paid to the county is money earned. The Associates at California Property Tax can help you in this endeavor. But first, let’s take a look at the Sacramento County Assessor’s office.

The California State Board of Equalization is mandated by law to audit the office of the county assessor throughout the state of California to assure compliance with the property tax laws. And Sacramento County, the most recent audit produced some interesting results. They are presented here in excerpts from the actual report which can be read in its entirety by clicking here. We wish to point out that in no way are we attempting to slander the assessor’s office. We merely wish to point out that they have the ability to make mistakes, mistakes that can cost you money. We are experts at finding and correcting those mistakes whether they are errors in judgment or factual errors. Let’s look at the report.

In the area of change in ownership, the assessor’s website provides inaccurate information
about transfers of base year value by persons over age 55, and the assessor adds the value of
improvement bonds to sales prices of real property without developing the evidence required
to support the addition.
• The assessor has not enrolled all new decks and patios as new construction at their full cash
value; and he does not obtain copies of building permits from Sacramento County’s
Environmental Health Division.
• The assessor’s California Land Conservation Act (CLCA) program has several shortcomings:
(1) the assessor has not enrolled significant areas of taxable vineyards and nonliving
improvements; (2) he does not use market-derived expense rates when valuing CLCA
property; (3) he improperly classifies irrigation wells as unrestricted improvements on CLCA
property; (4) has not consistently established base year values for trees or vines; (5) he does
not treat restricted CLCA property as a separate appraisal unit; and (6) he inappropriately
issues supplemental assessments on restricted land when there is a change in ownership.
• The assessor has not correctly identified and enrolled parcels of taxable government-owned
land and has not completed the valuation of taxable government-owned properties for the
current roll.

The assessor should revise his possessory interest (PI) procedures in several areas: (1) he
inappropriately reapraises month-to-month tenancies at the airports, marinas, and other
public property as annual changes in ownership; (2) he has not followed rule 21 when
assessing possessory interests created by written agreements with a stated term of possession;
(3) he does not review all private uses at the fairgrounds that may qualify as PIs; and (4) he
incorrectly assesses the possessory interests of a private concessionaire who provide banking
services at a state university.
• The assessor does not send the Right-of-Way Property Statement (Form BOE-571-RW) to
pipeline owners, and he does not maintain pipeline right-of-way assessment records in
accordance with section 401.8.
• The assessor does not correctly determine the appraisal unit for mineral properties as
required by rule 469.

The assessor accepts business property statements that are not BOE-prescribed forms or that
lack a proper signature, and he does not consistently apply the penalty for late filed
statements.

• The assessor does not consistently identify and correctly classify taxable personal property in
apartment complexes, personal property owned by one-way paging companies, or pollution
control equipment financed by state bonds, and does not use Assessors’ Handbook Section
581, Equipment Index and Percent Good Factors, as intended.
• The assessor does not review significant differences found in business property statements
filed by leasing companies.
• In the area of vessel assessments, the assessor does not add a sales tax component to the
suggested values in published vessel value guides, and accepts unsigned vessel property
statements.
• The assessor’s manufactured home assessment program has several areas of weakness: (1) he
does not classify manufactured homes as personal property as required by section 5801; (2)
in one year, he enrolled escape assessments for a group of manufactured homes based on an
inappropriate edition of a published value guide; (3) he incorrectly issues supplemental
assessments for manufactured homes voluntarily converted to local property taxation; and
(4) he inappropriately adds sales tax to used manufactured home values derived from the
NADA appraisal guide when they are resold or voluntarily converted to local property
taxation.
• Some taxable animals have escaped assessment.

=============================End of Report==============================

To restate what we said earlier, we in no way want to have given the office of the assessor in Sacramento County. Overall they do a good job. But there are many, many properties that require constant attention. The Associates at California Property Tax have the time and attention to give to your property. We can ensure that the taxes you pay are the taxes you owe and not a penny more area. We work on a contingency basis, so we don’t get paid unless we perform. You can readily see our feet and our contract by clicking  Our Fee.  the deadline is coming in just a few short weeks. Contact us today.

Los Angeles County Assessor Report Card

The Los Angeles County assessor’s offices, of which there are many dispersed throughout the county have the responsibility to annually assess each property, both real and personal for the purpose of property tax assessment. How do they do? Let’s see. But first we will make it clear that there are elements of the assessors job that he does very well. Our intent is to simply point out there are many deficiencies in LA County relative to assessment practices.

We present the following from the Los Angeles County Assessment Practices Survey accomplished by the State Board of Equalization dated May, 2008 (the most recent audit): Audit of Los Angeles County Assessor’s Office by the California State Board of Equalization May, 2008

EXECUTIVE SUMMARY (These are the comments from the actual audit by the State Board of Equalization)

…As stated in the Introduction, this report emphasizes problem areas we found in the operations of the assessor’s office…Areas within other programs, however, need improvement…

…However, we found that uncertified staff are processing business property statements; there are no estimates or assessments made for supplies when taxpayers fail to report supplies on their business property statements; and historical aircraft exemptions are being incorrectly granted…

…Moreover, the processing of changes in ownership of certain types of manufactured housing needs improvement, and there are minor problems with the assessment of vessels and animals…

…However, we found that the assessor does not maintain uniformity in document processing… In addition, we found that another district office does not have access to vital records, which are valuable tools for confirming information on deaths, marriages, and births. Instead, the ownership staff contacts the downtown office for such information. This inevitably interferes with production and may lead to incorrect document processing…The assessor should ensure that his staff knows and understands the proper procedure for processing change in ownership documents. The assessor also should provide the proper resources to all district offices so that the staff will be able to operate efficiently and effectively…

We found that the assessor does not determine the fair market value of construction in progress on each lien date as required by section 71. Instead, the assessor’s computer system automatically applies the annual inflation factor to the prior roll value of construction in progress. Upon completion of the construction project, the assessor issues roll corrections for the years in which the construction was still in progress. Section 71 provides that new construction in progress shall be enrolled on each lien date at its full value until the date of completion. Upon completion, the entire portion of the property that was newly constructed shall be reappraised at its full value. Thereafter, the entire assessment shall be subject to the annual inflation factor. It is improper to apply the inflation factor to construction in progress. Taxable government-owned properties misdirected to district offices often are not identified as such…

…Further, appraisers in district offices may not be aware of the special assessment procedures regarding the valuation of taxable government-owned properties. Thus, the misdirection of taxable government-owned properties to district offices often results in assessment errors. For example, many taxable government-owned properties are issued supplemental assessments because they were not identified correctly. By properly directing taxable government-owned properties to the appraiser specialist, improper assessments could be avoided...

We found that the assessor does not issue supplemental assessments for all changes in ownership of taxable possessory interests...

==============End of Report=================================

Again, our intent is not to slander the work of the Los Angeles County Assessor’s Office. Overall, we believe they do a good job for the limited employees they have. But in our 20 years of experience we have discovered many errors and fought many hard fights on behalf of our clients, winning most of them.

If you would like to read the 64 page report from which the excerpts were taken above please click here.

Click Here for Los Angeles County Assessors Office Information

If you own property in Los Angeles County and are considering an assessment appeal, you owe it to yourself to have an experienced knowledgeable company represent you. Don’t get caught up in the rhetoric; the County assessor oftentimes does not represent your best interests. Please call us at (909) 867-5000 directly.

Los Angeles County

The state of the real estate market in Los Angeles County relative to property tax assessments can be summed up in a very simple statement: property taxes are too high!  If you want to appeal your property tax we can help. We are a property tax reduction company specializing in LA County property tax appeals.

Please choose your property type from the paragraphs below to read about your specific situation.

Residential

The chart above shows the year-to-year change in the median price of existing homes in Los Angeles County.  The fact that property values have dramatically decreased is no surprise to anyone.  What everyone wants to know is what will happen in the future.

Commercial

Our years in this business, especially in the decade of the 1990’s  have taught us that as the residential property tax values go, so goes the commercial.  We believe the LA County commercial property market as it relates to property taxes has begun a market correction that will follow residential values.

The degree of the decline is yet to be known by we are convinced it will be substantial. Already we are finding substantial reductions in our commercial property client portfolios. Multimillion dollar assessment reductions like we obtained on a commercial property in central California from $37 million to $15 million are a bit surprising even to us, but possible. Why? Because the state of the market is in turmoil. Look at the chart to the right.

This is a Moody’s chart of commercial property overall in the United States but you get the picture. Beginning in mid-2007 commercial markets began to see reaction to the residential fallout. That reaction has been swift and decisive. Money is harder to get for refinances as well as new purchases and new developments.

Meanwhile Los Angeles County property taxes continue to rise as though nothing were happening with commercial property tax assessments.  The LA County  Assessor’s office has been very slow to react.  You, the commercial property owner, need help. All commercial property owners in Los Angeles County need to preserve their capital, and protect their bottom line. California property tax Associates (CAPTA) can help. We are the experts.

CAPTA Associates have been helping California property owners and specifically, Los Angeles County commercial property owners to reduce their assessments for over 20 years. We have fought aggressively to ensure that our clients pay only their fair share by utilizing every assessment reduction strategy allowed by law. We work entirely on a contingency basis. That means if you don’t save money, we don’t get paid. You never pay anything until you receive proof of a property tax savings, credit or refund.

Right now you have two choices. Do nothing and lose, or let us fight for you and win.  In our reduction we cited above our client saves $240,000 each year.  That is bottom-line profit otherwise lost to the state of California. Can you afford to lose that kind of money?

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