County Assessment-Value Appeal

Note about the Assessment Appeal process and County Property Tax procedures

In each county the County Assessor is charged with providing an assessment value for each property. You should understand that the State Board of Equalization (SBE) oversees the administration of the Property Taxes Law Guide for each county.  Audits are performed by the SBE regularly in all California Counties to assure compliance.  But to receive their maximum share of property tax revenues, counties only have to comply with a percentage of SBE requirements. That means that from county to county the rule of law can be significantly different.  For this reason the presentation here is of a general nature and could vary significantly in specific county appeals hearings.

California real and personal property is assessed annually by the Assessor in each county, who then provides the assessment roll to the Tax Collector who prepares the bill to collect the property tax.

When the county assessment for a real property is not correct, and trying to achieve a satisfactory adjustment from the County Assessor fails, there is but one alternative:

California Property Tax Assessment Appeal

In most counties the Assessment Appeal Board is appointed by the County Supervisor to serve a certain term.  The appointments can be filled by individuals with real estate or appraisal experience but is many times made up of the spouse of a contributor who has little understanding of real estate or appraisal procedure.

The County Assessment Appeals Board generally had 3 members; however, they may serve with only two if no objection is made.  The meeting chambers consist of vastly different settings by county; some meet in the formal Supervisors chambers which is like a courtroom, while others are informal and meet in normal offices.  In some counties the County Counsel (attorney) upholds the value in the County case and in others, the Assessor appoints one of the County appraisers to represent the Assessors side.

The normal Assessment Appeal hearing is much like a courtroom scene:  the Assessors Representative (AR) is the prosecutor wishing to prove his value correct.  The county property tax payer presents his case first, depending on the property and value, and then defends against the questions of the AR, as well as answers questions from the board.  The AR then presents his case, after which he defends questions from the property tax payer and the Assessment Appeals Board.  Both sides are then given time for closing arguments.  The board at that time either makes a determination or takes the matter under submission, sending letters to the parties generally within a week.

Once the Assessment Appeal Board makes a value determination it is generally the end of the process.  The only other option is a further appeal in Superior Court with the obvious complications and legal expenses.  Generally, only extremely complicated, high dollar cases are appealed at this level.  Seek counsel early if you anticipate going this route.

Go to COUNTY PROPERTY TAX APPEAL ACTUAL CASE STUDY

Go to URGENT MESSAGE FOR COMMERCIAL PROPERTY OWNERS 2009

Go to CALIFORNIA PROPERTY TAX FREQUENTLY ASKED QUESTIONS (FAQS)

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.

County Property Assessment-Proposition 13

The following is a simplified discussion of Proposition 13 and California property taxes in general. It is not a complete Prop 13 explanation but simply an introduction into the California property tax assessment procedures. For a complete understanding of the California property tax Law on a county by county basis, please read the Property Taxes Law Guide and The State Board of Equalization audits (this one is for Contra Costa as an example).

Pre Proposition 13

Before the passage of Proposition 13 California property taxes were raised by an annual assessment of all property located in the state of California. Simply stated California property tax was based on the fair value of your property each year as shown in the assessment on your tax bill. Each year, as California property values increased, so did the value assessment for the property tax payment.

The system worked fine until California property values began to appreciate at an accelerated rate, which then resulted in increasingly higher assessments and increasingly higher California property taxes. People who didn’t change residences or other properties found themselves with escalating California property tax bills with personal income that didn’t follow suit. The California property tax system was broken and the fix was Proposition 13.

Proposition 13

To summarize, before proposition 13 California property taxes were based upon the fair market value of your property each year. Should values increase at a greater than normal rate, so did your California property taxes.

With Prop 13 California property tax law changed extraordinarily as stated in the paragraph from Proposition 13 below:

Section 1. (a) The maximum amount of any ad valorem tax on real property shall not exceed One percent (1%) of the full cash value of such property. The one percent (1%) tax to be collected by the counties and apportioned according to law to the districts within the counties.

This meant that each year the state could collect no more than 1% of the assessed value of California real property.  It went on to say that the county assessor could raise the value of the given property no more than 2% annually. As an example, if the value increased 5% this new California property tax law limited the assessment to a 2% increase.

As stated in an earlier page, when a new property is completed (completion of new construction) or when a property is sold (change in ownership) Proposition 13 provides that a base year value be determined. To assist in this determination a rule was created, Rule 2 which stated that in the absence of evidence to the contrary, it would be assumed that fair market value was the price paid in a sale of property made in an arms length  transaction between a knowledgeable buyer and a knowledgeable seller neither of which was taking advantage of the other.  For the purpose of making a value assessment for California property taxes, if the buyer bought a property for $500,000 from the seller with no extenuating circumstances, then $500,000 would be considered the base your value.

Proposition 13 then stated that each year the maximum assessment increase was the base year +1%. The taxpayers voted, the government cried foul but the vote carried and Proposition 13 was passed.

All went well in the property tax world as properties appreciated and taxes lagged behind until something different happened.  Property values began to fall and yet the assessed value continue to be raised by 2% in accordance with Proposition 13.  This presented an unforeseen problem with assessments for California property taxes which resulted in a new Proposition.

Go to PROPOSITION 8

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.

Contact Form

Name:

E-Mail Address:

Property Type

Approximate Value

Office Phone

Cell Phone

Subject:

Message:

CAPTCHA Code:

County by County Assessor Information

In the state of California each county is charged with assessing values to all property, both real and personal in accordance with Proposition 13 and the Property Taxes Law Guide. Throughout the counties there are differences of opinion as to the interpretation of these laws. The State Board of Equalization is charged with auditing each county to assure compliance with respect to property tax reduction, property tax appeal and the procedures associated therewith. Though the county must follow the procedures as they interpret them, the State Board Of Equalization audits among other things, Property Tax Assessment Compliance, Assessment Appeals Board Procedures Compliance, and general assessment procedures. The County Property Tax Assessor  has the right to deviate from the recommendations in the audit but must comply with a certain percentage in order to receive the allocated funds for the county. This leads to a great disparity in County Property Tax Reduction Procedures from county to county. To find the status of the particular County that interests you, please click on the link below.

If you need assistance to receive the county property tax reduction to which you are entitled under Prop 8, or representation before the County Assessment Appeals Board, or if you simply have a question about property tax reduction in your County, please call us at (909) 867-5000.

Listing of County Assessors, Addresses and Phone Numbers

California Counties and Their Websites

California Counties’ Websites