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FAQs
Below are a list of California property tax value reduction FAQs we’ve put together to help you understand the taxation and representation process from county to county. Property tax assessment reduction of commercial property as well as residential property does vary; please call us for questions specific to a particular county.
If you still have questions after reviewing this page and our CAPTA website, please do not hesitate to call us at (888) 678-9TAX or use the form at the bottom of this page.
Q: Who is CAPTA (California Property Tax Associates) – and how can you reduce my property taxes in my county?
A: California Property Tax Associates is a California Partnership that specializes in real estate property tax reduction throughout the State of California. For each Client we represent we apply an organized process for compiling and analyzing available data. This includes researching the County property tax records for each individual property, examining recent sales of similar properties in the vicinity of the subject and performing a comparable valuation analysis. This is different than a normal appraisal in that we determine a property’s value based upon the provisions of the Revenue and Taxation Code; it doesn’t necessarily matter what you paid to buy or build your property or what you think the value is.
One of our partners began performing these services representing California Property tax payers in 1989. Throughout the 1990’s the focus was primarily on large commercial projects and land developments as well as upscale residential properties. We saved thousands and thousands of Californians many millions of dollars in over-assessed property taxes. Our results then, like now were based on employing a highly skilled staff, access to extensive industry information, and a clear understanding of the California property tax assessment process.
Q: We have a very complicated property of great value. Is your company capable of handling such a unique property?
A: Precisely our forte. As previously stated we are a company that thinks outside the box. We research your property and use our experience to develop the best strategy allowed by law. We have more time than the assessor’s office gives their appraisers, and more experience than many of our adversaries in the assessor’s office.
Q: Is your company successful in reducing property taxes in California?
A: The simple answer is, extraordinarily! Again, we are a company that thinks outside the box. Each county knows our agents and consultants will fight for the reduction they believe is due. As we go before the assessment appeals board County by County, we have earned a reputation as aggressive and knowledgeable adversaries. It is for this reason we frequently negotiate informally with the appraisers at the assessor’s office. It is this experience and expertise that provides you with the best possible representation.
Q: Can you tell me basically what the process is in receiving a property tax savings, credit or refund in my county?
A: County by county the rules are somewhat different. Depending on where your property is located and the procedures in place at the assessor’s office in that county the process could take anywhere from a few months to in excess of two years. We will attempt to handle your case informally without the need to file the formal appeal. Once the filing of the formal appeal takes place the county has two years to hear the case before the county assessment appeals board. Frequently negotiations continue during this process. You can rest assured that we will do our best to secure your property reduction as quickly as possible.
Q: Others claim to be able to do the same thing as you do for less money. Why shouldn’t I use them?
A: Maybe you should. If you own a single family residential home in a tract neighborhood you should at least try it yourself if you have the time. If you are successful, great! If not, if you think there’s more there that you didn’t receive come back and let us try on your behalf.
If you own a custom home of greater value or commercial property you owe it to yourself to hire a professional. While some have had success doing it on their own we have been witness to hundreds at the county assessment appeals board hearings who never got what they deserved because they didn’t understand the system. The system is fraught with difficulties as identified by an attorney who wrote this article for the California Property Tax Payers Association.
Q: If you are hired to help me, what do I have to do?
A: Almost Nothing!!! Once we discuss your property characteristics with you, we will represents you as needed to obtain a reduction in the assessed value of your property. Whatever it takes, we do all the work to see that your property is fairly assessed, even preparing the case and appealing all the way to the California Property Tax Assessment Appeals Board. And you pay nothing unless you receive documentation of the assessment reduction. NO SAVINGS, NO FEE.
Q: Are you one of those companies I read about scamming people?
A: No. In fact, we are on those websites giving links to our do-it-yourself pages. We do however take exception to being lumped in with a few bad people who are trying to mislead the elderly into paying a few hundred dollars they can’t afford to pay. As previously stated our clients are primarily well-to-do and professionals with no time to learn the system of property tax reduction in California. We are no more a scam company than H&R Block who does income taxes for people who could easily do them themselves, or Jiffy Lube changing oil for people perfectly capable of changing their own oil. They just choose not to get their hands dirty or don’t want to go buy the right tools. We are no different. Again, many of our Clients are attorneys.
Q: What is your fee?
A: At California Property Tax Associates we work entirely on a contingency basis; if you don’t receive a property tax savings, credit or refund you pay us nothing! Otherwise, our fee is simply a portion of your savings. No savings; no fee! Click the “Fee” button above to read our simple one page contract.
Q: Do I pay you every year I save the money?
A: No. Our fee is based on the documented property tax savings in the first full fiscal year. If you receive a prior year(s) savings, credit or refund we would also share in that, although generally you lose your right once filing deadlines pass for previous years. Only if you receive a further reduction in subsequent years do you pay us for the additional reduction. Please call us for further details as there are certain differences county to county.
Q: Is there a fee if my taxes aren’t reduced?
A: Absolutely NOT!!! There are no hidden fees, no up front costs, no cash out of pocket. You pay absolutely nothing until your property taxes have been reduced and you have documentation notifying you of your properties assessed value reduction.
Q: If you challenge my assessed value, can’t the County reverse itself and raise my property taxes?
A: No. Under normal circumstances the County cannot raise your value above the “Base Year” value, except by increasing it up to 2% per year, pursuant to the provisions of the Revenue and Taxation Code.
Q: Should I hire you or should I do it myself?
A: Self-representation is always an option. The difference in hiring California Property Tax Associates is that you will have a team of full-time professionals with a clear understanding of the property tax appeal process along with our industry specific databases of valuable information that, when used together will ensure an aggressive strategy to obtain the maximum property tax reduction and greatest savings for you, our Client.
Q: If I have an appeal pending do I have to pay my taxes?
A: We all know the answer to this one; unfortunately it is yes. If your taxes are not kept current, you will be responsible for interest and penalties. Once an appeal is successful you will receive a refund for the difference for what you paid and what you should have paid, based on the reduced value granted in the appeal.
Q: Will someone come out to inspect my property?
A: It is possible but probably not. Most counties have their hands full with thousands of appeals each year and they typically will rely on public records to make their case. Mostly, in preparation for a hearing, an associate of California Property Tax Associates may have to visit and inspect your property. At all times we will be discreet with the information we collect.
Q. Is the Assessor limited to raising my County property taxes by 2% after a reduction?
A: No. Just as your reduction is not limited, neither is the amount that property taxes can be restored to, up to the factored Proposition 13 base year value. This means that when the values begin to rise, your assessed value may rise again. But never more then they would have been had we have not achieved the reduction.
Q. Once my reduction has been granted for the current year will I then have to repeat the process every year?
A: California Property Tax Associates will review the data in each year concerning your property. We will ensure that your value is at its lowest each year and if necessary, go back and file an assessment appeal for further reductions.
Q. Can’t I do it myself?
A: Absolutely! But, you should first read: WHY TAXPAYERS HATE THE PROPERTY TAX SYSTEM.
Comments or questions are welcome.
About
CAPTA (California Property Tax Associates) is a California Partnership that specializes in real estate property tax consulting throughout the State of California. One of our partners began performing these services for California Property owners in 1989. Throughout the 1990's the focus was primarily on large commercial projects and land developments as well as upscale residential properties. We saved thousands and thousands of Californians many millions of dollars in over-assessed property taxes. Our results then, like now were based on employing a highly skilled staff, access to extensive industry information, and a clear understanding of the property tax assessment process.
Unlike other companies our fee is entirely contingency based; no savings, no fee. There is never an up-front fee or a reimbursement of costs. Simply put, NO SAVINGS; NO FEE.
OPEN LETTER TO A PROSPECTIVE CLIENT (NOW A CLIENT)
Dear Mark,
Allow me to introduce myself. My name is Jim Guffey and I'm one of the partners in California Property Tax Associates. I'm also Tom's brother. In 1989-90 I started a property tax reduction company in San Bernardino County, California. You may or may not recall that property values were doing very well and foreign investors, particularly the Japanese were buying up commercial property at record levels. Properties frequently appreciated during the escrow period 5 or even 6%. You could almost do no wrong. Business was good and Tom and I worked together for over 10 years reducing property values for our clients. Tom has told me that you want letters of reference but I hope this e-mail will suffice.
In the early 90s one of our first clients was a gentleman based in San Diego County who was buying small pieces of property in San Bernardino County from individual landowners. The size of the parcels was two to five acres. When he bought enough small pieces he began the entitlement process and subsequently sold the properties to a large company who would build the homes. He was very successful but the assessors office saw what he was doing and immediately began assessing his property when he first purchased the vacant lot for what a year and a half later he would sell the parcelized property for, per acre. In other words, if he bought the raw land acre for $4000 and sold it a year and a half later, entitled for $40,000 an acre the assessor was immediately assessing all of his raw land purchases for $40,000 an acre. We were successful in appeal in getting all of these transactions reduced to his original purchase price arguing stage of development. This was hundreds of individual parcels.
Another client was Premier Homes, a French company based in Corona. They were in a similar position to your company with large holdings of land in Southern California. We worked on many of their properties but in particular, one parcel in Lancaster had a value of $16 million and was fully entitled, ready to build. We were successful in reducing this property to less than $4 million. It subsequently sold a short time after we achieved the reduction for $8 million.
It is important to understand that fair market value in the marketplace is not the same as fair market value for assessment purposes. Frequently we are successful in reducing property that sells for far greater than what our reduction showed. Again, this is because when we value property in accordance with the Revenue and Taxation Code in the State of California we follow the guidelines set forth in the appraisal manuals and also the guidelines used in each particular county. Unfortunately these differ substantially from county to county. However, frequently these appraisal guidelines work in our favor and our clients, many of whom told us there was no possible way for us to get reductions on a given property, are amazed at our results. Not always but frequently.
Another client was located in the Beaumont area in Riverside County and had purchased a property known as the Three Ring Ranch. It was situated at the split of the 60 and the 10 freeway's and was purchased by an individual who planned on flipping it to a housing company. But while he was negotiating the market turned and nobody was interested. We began our work for him in 1990 and subsequently he lost the property in foreclosure. We continued our work for the new owner securing large reductions in the back taxes. This property did subsequently sell and was developed in later years and is still known as Three Ring Ranch.
In the same area Highland Springs Resort had just transferred ownership in the late 80s. In addition to the resort which had many varied buildings and improvements, along with a mobile home park there were numerous residential development parcels. Although this property took a considerable amount of time and numerous appeal hearings due to its complexity, we were also successful in reducing it's assessed value substantially.
We did substantial residential development properties in the high desert area of Victorville as well. Schaffer Real Estate and Investment Company, Inc. had substantial vacant land holdings and we succeeded in reducing scores in his portfolio. Additionally, Thomas Rhubik had a number of large residential development properties that we had great success with. These are the companies that come to mind.
We also worked extensively in the Central Valley as well as the Bay Area. In short, we have experience with all the major counties in California and a number of the smaller counties as well. While the rules are all the same as each county has to live by the Revenue And Taxation Code they each have latitude to accomplish certain tasks their own way. When you hire us you hire someone who has the ability and experience to accomplish the task at hand in the shortest possible time with the greatest possible results.
I hope this helps. The decision you have before you is complex and infinitely important to the bottom line of your company and it's investors. The inventory that currently exists on your balance sheet has associated expenses. The quicker you can reduce those related expenses the easier it will be to wait out and even thrive in this market. Property Taxes are one of the largest expenses. But make no mistake: if you don't file, you won't realize maximum reductions. And if you do file but lack the experience and understanding of the system you will likely lose as well. In the least you will not accomplish the maximum possible result. CAPTA will.
One last thing. Over the years our client list has included many attorneys who knew better than to try to understand the workings of the assessors office when they had no experience. One of our early clients was actor Tony Curtis. We never met him, we only worked through his attorney, with great success. His attorney knew better than to venture into this territory.
In case Tom didn't tell you, I am currently in Guatemala but will be happy to fly out to meet you once we have a relationship. If you're not comfortable paying us a percentage we do work on an hourly basis. However, as you know our percentage fee is based solely on results. But the sooner we get started the better for you.
Sincerely, Jim Guffey
Comments or questions are welcome.
