Search Results for 'real estate owner information'
Urgent Message-California Property Tax Relief
Tax Help
May, 2010. The market appears to be bottoming out. At least, so say the gurus. But don’t you bank on it. CAPTA believes we are currently in the eye of the storm, with the 2nd half approaching rapidly. It is precisely at this time you need a professional tax reduction company to guide you through the coming, actually the continuing commercial real estate recession.
California is in a real estate crisis and indeed, an economic crisis the likes of which have never been seen in history. Major California commercial property tenants such as Mervyns, Hollywood Video, Levitz, Sharper Image, Performance Team Freight, Linens n Things and Circuit City have recently filed for Bankruptcy. It was only a few short months ago that one of the safest bets in Real Property Investment was a NNN tenant such as Circuit City. Today, owners of such leases are scrambling to sell their vacant big box space to nonexistent buyers. So goes conventional wisdom.
You are at this site because you realize that now more than ever before, commercial property owners and managers must streamline their expenses and prepare for a commercial property value decline that is just now becoming evident. Read the paragraph below from “CoStar Group, #1 Commercial Real Estate Information Company” written in May of 2009:
Retail Space Availability Reaches All-Time High
The nation’s retail market posted negative quarterly net absorption for the first time, along with the highest vacancy and availability rates, since CoStar Group began tracking retail trends in 2000, according to the Bethesda, MD-based company’s first-quarter 2009 retail review and forecast.
CoStar’s research shows that the average days a retail space is listed on the market as “available for lease” has continued to rise — from 174 days in first-quarter 2006 to 370 days in first-quarter 2009…Unfortunately, CoStar is forecasting that the retail vacancy rate will continue to climb…Spivey showed that the average sale price per square foot has dropped from $235 to $125 since the recession started, while the average time a property spends on the market has increased from about 255 to 334 days.
CoStar forecasts that sometime in the next two to three years, the average retail cap rate could hit a level that is 400 basis points higher than where it was at the start of the recession. If that happens, the average cap rate would be around 11% (a high not seen since 1994), which would create better margins for buyers and should fuel transaction activity. Additionally, CoStar forecasts that the average sale price per square foot could go as low as 70% off pre-recession pricing and sales volume could end up as much as 90% off pre-recession activity, sometime in the next two to three years.
Okay, things are bad nationally but what about California? Here it is:
Spivey identified Los Angeles and Atlanta as having more excess retail inventory than any other markets…The markets with the largest first quarter increase in the average retail vacancy rate: Las Vegas (+154bps), South Bay / San Jose (+113bps), Baltimore (112bps), Inland Empire CA (+111bps), Southwest FL (+98bps), Phoenix (+94bps), Atlanta (+94bps), Sacramento (+89bps), Oklahoma City (+82bps), and Orange County CA (+82bps)…During first quarter, the markets that saw the largest net amount of retail space become vacant, as a percentage of total retail rentable building area (RBA), in order, were: South Bay / San Jose, Las Vegas, Inland Empire CA, Sacramento, Pittsburgh, Baltimore, San Diego, Phoenix, Oklahoma City, and Nashville.
That is the nature of the future of retail. But maybe you own apartments or industrial or office buildings. Then you know that as goes residential so goes retail so goes the rest of the commercial market. It’s one big game of follow the leader. While there has been relatively good news in the commercial sector until last year, the tide is currently changing.
Make no mistake; there is a problem, a big problem in the commercial real estate market similar to what just happened and is currently happening in the SFR market. Obviously you understand the need to be proactive in the face of this problem. The question we need to answer for you is why use California Property Tax Associates to assist you with this problem. What sets us apart from our competitors?
We Are Property Owners and Developers
At California Property Tax Associates we understand the problems of commercial property owners, managers and developers because our partners are commercial property owners, managers and developers. In addition to starting to work in the area of property tax appeals and reassessments in 1989, our associates have various past and current experience building residential development and commercial properties, as well as leasing experience as landlord and manager in the California property market. You will not be turning your property tax issues over to ‘form filers’ as many companies are, but to a group of people led by commercial property owners and managers experienced in owning and managing commercial properties. We understand this business from the inside.
And one more very important thing. Again to quote Andrew Florance, President and CEO of CoStar Group, “When the market is moving this rapidly you have to switch gears and look at it from a different angle.” He was talking about the fact that the Office Vacancy rate is not showing the real situation in the Office space sector. But his statement is much more far reaching.
Think Outside The Box
We hate to use this worn out expression but it is exactly what is called for in our current California Property Tax Assessment / Reassessment situation. The tried and true, follow the book procedures of the past need to be reinvented with each case. Can you get a loan like you could 2 years ago? Can you count on real estate appreciation like you could 3 years ago? Can you count on Chevrolet, Chrysler or Ford like you could a few months ago? The answer is a resounding NO! Neither can you approach a Property Tax Assessment Appeal case like you would have just a few years ago.
In the last year there have been many changes in the Assessment Appeals arena. Appraisal methods used for the past 14 years are being replaced with ’shoot from the hip’ thinking. To prepare for an Assessment Appeal in California Counties is in many ways like an unscripted debate, where common sense and proving ones case in real life are becoming more important than following ‘the rules’. That’s what Mr. Florance is saying above: “When the market is moving this rapidly you have to switch gears and look at it from a different angle.” And that’s what we do at California Property Tax Associates.
Experience, Knowledge and Common Sense
Our experience started in the last serious downturn in the market back in the early 1990’s. We worked within our knowledge of the Revenue and Taxation Code, the Assessor’s Handbooks and California Assessment Appeal procedures, and, based upon our extensive experience representing thousands of Clients and working Statewide, we developed strategies to maximize our Clients Property Tax Savings, Credits and Refunds.
The result? California Property Tax Associates is on the cutting edge ready to put our experience buying, building and managing real estate to work for you. We will represent you to reduce your property tax liability by using our experience and knowledge of the Property Tax Assessment Appeals system in California. And the best part to you? If you do not receive a property tax savings, credit or refund, you owe us nothing. No Savings; No Fee!
Contact us at (909) 867-5000 immediately with any questions or go to our Frequently Asked Questions page. Or if you’d rather, just click here to CONTACT US by email and we will call you. But don’t put this decision off; deadlines are rapidly approaching.
California Property Tax Associates (CAPTA)
“THIS ASSESSMENT REDUCTION FILING SERVICE IS NOT ASSOCIATED WITH ANY
GOVERNMENT AGENCY. IF YOU DISAGREE WITH THE ASSESSED VALUE OF YOUR
PROPERTY, YOU HAVE THE RIGHT TO AN INFORMAL ASSESSMENT REVIEW, AT NO
COST, BY CONTACTING THE ASSESSOR’S OFFICE DIRECTLY. IF YOU AND THE
ASSESSOR CANNOT AGREE TO THE VALUE OF THE PROPERTY OR IF YOU DO NOT
WISH TO CONTACT THE ASSESSOR YOU CAN OBTAIN AND FILE AN APPLICATION
FOR CHANGED ASSESSMENT WITH THE COUNTY BOARD OF EQUALIZATION OR
ASSESSMENT APPEALS BOARD ON YOUR OWN BEHALF. AN APPEALS BOARD HAS THE
AUTHORITY TO RAISE PROPERTY VALUES (BUT IN NO CASE HIGHER THAN THE
PROPOSITION 13 PROTECTED VALUE) AS WELL AS TO LOWER PROPERTY VALUES.”
The above disclaimer is required by AB 992. CAPTA is pleased to include it in our website as a remedy to the growing number of fraudulent companies seeking to take advantage of the continuing problems associated with falling real property values.
While CAPTA agrees with the above premise that the Assessor should reduce a property’s value if it is over-assessed, the magnitude of the work required to accomplish this task is not possible. As the need increases, the budget and staffing at the Assessors Office decreases. They simply cannot do more work with less people. That’s where CAPTA comes in.
California Property Tax Associates (CAPTA) is an expert in the field of Property Tax reduction relief . For many years we have saved thousands of Clients millions of dollars in counties throughout the State of California by representation before the Assessment Appeals Boards in the assessment reduction process. Our Associates who will actively work on our Clients portfolios include attorneys, licensed and certified appraisers, and past and present County Assessment Appeals Board Members.
California Property Tax Assessment Appeal Experience and Services
- 20 Years Experience Reducing Assessments County by County
- A History of Success Across Property Types (see rotating chart on right for recent reductions)
- Contingency Based Fee; No Savings, No Fee!
- CAPTA Does All The Work
- All Appraisal Work Required
- Informal Assessment Review Filing
- Negotiation With Assessors Office
- Formal Appeal Filing- If Your Appeal Is Already Filed By You Or Another Agent- We Can Still Represent You
- Negotiation With Assessors Office Prior to Assessment Apeals Hearing
- Full Representation at the County Assessment Appeals Board Hearing
- Future Year Assessment Appeal Filing Where Warranted
- Annual Property Tax Assessment Review to Ensure Lowest Possible Value
CAPTA is dedicated to educating property owners about their rights under the California Revenue and Taxation Code. Some of our associates have worked to provide assessment relief and reduce property taxes since 1989.
Our mission is simple:
- Enforce our Clients Rights under Proposition 13 and ensure they never pay more property tax than what they are required to pay after applying every conceivable reduction strategy allowed by law.
In most cases our fee agreement is simple as well: You, the property owner receive property tax savings, credits, or refunds–otherwise you don’t pay. There are never any up front costs and fees are only due once you have received official notification of your savings. NO SAVINGS-NO FEE!
Over the years our associates have handled cases for a variety of clients and interests which include restaurants such as Del Taco, Sizzler, Honey Baked Hams and Burger King, vacant commercial and residential land projects, shopping centers and retail properties such as Chino Town Center and Blue Jay Village Corp., hundreds of industrial buildings such as the GFS Airport Center located at the Los Angeles International Airport, hundreds of office and apartment buildings, and countless single-family residences Statewide.
CAPTA Can Help
Our team of agents and consultants have helped property owners get through tough times like these back in the 1990’s with property tax savings and even refunds. The California Property Tax Appeal system is difficult but fair overall, but accurate taxation is the responsibility of the property owner who has the greatest interest in establishing a fair market value.
CAPTA can give you Property Tax Reduction help and assistance. Now more than ever you need to protect your assets by making wise decisions in a depreciating market. CAPTA has the Agents, Consultants and systems in place and the experience you need to maximize your property tax savings and refunds. Regardless of whether you own residential property, apartments, retail, commercial, industrial or even vacant land, all real estate is subject to valuation for taxation by the County Assessors Office and should be reviewed for a reduction in value whenever possible.
CAPTA has provided answers to most of your questions throughout the pages of this site. Please feel free to browse our frequently asked questions (FAQ) section for additional information.
Ready to Get Started? There is no charge to begin and no fee is due until a reduction, refund, or savings is granted! If you would like to start the process and let CAPTA begin their investigation to determine the feasibility of receiving a reduction in your assessed value please call us immediately at 888-678-9TAX . But time is critical; deadlines vary by County.
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.
County Property Assessment-Proposition 8
Pre Proposition 8
Before Proposition 8 (California property taxes measure) was adapted in late 1978 the voters passed Proposition 13 which held that only a 2% increase in the assessed value could be enrolled by the County assessor for any given year despite the actual amount of increase in the real property value. California property tax payers were very happy with this property tax measure as it limited their property taxes they have to pay each year in the face of an ever appreciating real estate market. But what would happen if the values actually fell?
County property tax payers understood real quick that they had painted themselves into a corner. They had a piece of legislation that said the value of Real property could be raised to more than 2% a year; now they needed something to address property tax values in a declining market.
In 1978, California voters passed Proposition 8, a constitutional amendment that allows a temporary reduction in assessed value when a real property suffers a “decline-in-value.” A decline-in-value occurs when the current market value of real property is less than the current assessed value as of January 1 of a given year.
As an example for California property tax purposes, say your property has a value of $200,000 on January 1. The assessor needs to prepare the property tax value for the upcoming fiscal year, which runs July 1 through June 30 of each year. January 1, prior to the beginning of the fiscal year is the date of valuation for each fiscal year. So on January 1 your property was worth $210,000. But under Proposition 13 the California property tax assessor can only place an assessment $202,000, even though the market value is $210,000.
Taking the same example for California property tax purposes, say your $200,000 property has a value of $190,000 on January 1. Under Proposition 13 your property would still be valued at $202,000. But under the new Proposition 8 the assessor is allowed to enroll the lower of the factored base year value ($202,000) or the current fair market value ($190,000). The assessment should rightfully be $190,000. But is it?
Problems with the System
We’ve shown how the California property tax payer tried to deal with an unfair property tax system. Both Proposition 13 and Proposition 8 attempted to regulate the value of the assessment so that real property owners pay the right California property taxes in both an appreciating and a depreciating market. But notice the wording in the paragraph about Proposition 8:
In 1978, California voters passed Proposition 8, a constitutional amendment that allows a temporary reduction in assessed value when a property suffers a “decline-in-value.”
Notice that the amendment “allows” a temporary reduction. Some County assessor’s have held they are not required to reduce values. Others have been very forthcoming in recognizing the value declines and have been very proactive. But they can never do the job of recognizing individual property valuation changes. So they are held to doing mass appraisal for the most part on housing tracts and across very similar properties. Invariably, some are too high and some are too low. And still there is another problem.
Once the property taxes and the value have been reduced under Proposition 8, the County assessor is charged with raising the California property tax value when the value increases. Once again this is very subjective. The assessor enrolls a value of $195,000 for the coming year. Should it have stayed at $190,000? Should it have dropped further? Should it have been $193,000. All of these answers are dependent upon one person’s opinion of value. Are you content to let the assessor’s office make that determination?
Let’s look at some bigger numbers. In one of our examples of a recent reduction achieved on a property in central California, a $36 million property was reduced to $15 million. That’s an annual property tax savings of $226,000 for our client. Maybe next year the California property tax assessor wants to raise the assessment up to $25 million. Will that be correct? Maybe it should be $22 million. The difference is some $30,000 in California property taxes paid. That’s a lot of money for one man’s opinion.
So there you have it. Under Proposition 13 the value can only be raised 2% per year. Assuming the annual property tax values appreciate greater than 2% there is no dispute. But if the values depreciate there is only one thing to do: fight!
Go to PREPARING THE APPEAL
If this is enough information and you wish to have your property taxes reduced, please call us immediately at (888) 678-9TAX or fill out the simple form below and we will contact you at your convenience.
Comments or questions are welcome.
Why California Property Tax Associates?
Welcome to the California Property Tax Associates commercial properties website. We dominate Commercial property tax reduction in this State with a long history of success! Click this link if you are seeking information concerning residential real property assessments.
We are the property tax experts in the State of California. We are not accountants or attorneys but many of our clients are, and yet choose California property tax Associates for good reason: we are one of the most successful companies working to reduce property tax assessments in California. Unlike our competitors, we think outside the box!
Why is it necessary to retain a leading edge company with forward thinking, a company that dominates in it’s field? Read the excerpt from an article written by attorney Eric Miethke about the property tax appeals process entitled “Why Taxpayers Hate the Property Tax System”:
“Most practitioners and property tax managers share a common bond: they feel that rather than being a system of adjudicating legitimate disputes, the property tax appeals process has become a system of rubber-stamping assessor values, even when those values are arbitrarily determined.
How could practitioners and property tax managers come to this conclusion? Simply stated, because it is the correct one. The property tax appeals system is inherently unfair, and is designed to provide maximum revenue collection and de minimus due process for taxpayers.”
So you see the need for a company with our kind of experience and thinking. Beginning 20 years ago our principals began working to reduce California property taxes in the form of assessment reduction and appeal throughout the state of California. In county after county, from apartments to commercial shopping centers, vacant land to industrial parks, we have been extraordinarily successful in reducing California Property Taxes for our Clients for only one reason: we think outside the box.
In the State of California property tax is determined under the provisions of Proposition 13 as delineated in the California Property Taxes Law Guide. Each county then has the responsibility to comply with these laws and are subject to audit to ensure compliance. But each county has its own interpretation of these property tax laws and does not need to follow the States guidelines completely. Therefore it becomes very important that county property tax reduction agents and consultants understand the possibilities in each given case.
California Property Tax Associates has vast experience throughout the different Counties in the State of California with a history of success. We use every conceivable strategy to secure the greatest possible reduction in assessed value for each of our clients. And, our experience is not limited to representing commercial property owners because we are real property owners and managers.
Our principals own and manage California real property as well as an international residential development project. We are landlords in our properties with tenants like 7-Eleven, Alberto’s Mexican Food, Dominos Pizza and ColdStone Creamery. We understand commercial property like no other property tax consultant or agent can.
Please go on the the next page for more California Property Tax Information or, to speak with one of our Consultants you may call (909) 867-5000 or (888) 678-9TAX. If you prefer, simply fill out the form below and we will contact you at your convenience. Deadlines vary by county, but for most counties it is November 30. Our costs and fee structure is simple: No Savings, No fee! But act now; once deadlines pass you have lost your right to appeal. Do not allow this opportunity to pass without beginning the process. Please call or write today. Don’t pay more California Property Taxes than you have to.
Comments or questions are welcome.
