F.A.Q.

1. What are the annual filing dates?
2. What are Assessment Appeals, and how does it work?
3. How does Prop. 13 affect me?
4. How does Prop. 8 affect me?
5. What do you charge?
6. How long will it take to get an answer from the county as to whether or not my appeal was successful?
7. If I could do this myself, then why should I hire you to do it for me?
8. What approaches do Appeal Assessors use to calculate this reduction?
9. Should I continue making my scheduled property tax payments even though I am appealing my assessed value?

If you have any other questions, please contact us here.

What are the annual filing dates?

• January 1: Lien date - the time when taxes for the following fiscal year (July 1 - June 30) become a lien on property.
• February 15: Deadline for filing Veterans, Homeowners, Church, Religious, Welfare Exemptions, Historical Aircraft and other institutional exemptions.
• March 15: Deadline for filing Owner's Request for Review of Property Value.
• April 10: Deadline for payment of second installment of secured property taxes.
• July 1: Assessment Roll delivered by the Assessor to the Auditor-Controller.
• July 2 - September 15 or November 30: Period during which the Clerk of the Board accepts petitions for Assessment Appeals Board hearings on the regular roll. (Other filing periods may apply for Supplemental Assessments and Escape Assessments.)
• December 10: Deadline for payment of first installment of secured property taxes.
  

What are Assessment Appeals, and how does it work?

Assessment Appeals Boards (AAB) handle differences in opinion on values. Each is composed of  private citizens appointed by the County Board of Supervisors.  They consider all evidence presented by the property owner and the Assessor's office at a formal hearing.  The Appeals Board then determines the value of the property in question.

Appeals on regular assessments must be filed between July 2 and either September 15 and November 30 (depending on County). 
Appeals on supplemental assessments must be filed within 60 days of the date on the Supplemental Assessment Notice.

For more details on the Assessment Appeals process please refer to the appropriate County Link (county in which the property is located), presented on our home page.

How does CA Proposition 13 affect me?

Under Proposition 13, real property is reappraised only when a change-in-ownership occurs, or when new construction takes place. Generally, a change in ownership is a sale or transfer of property, while new construction is any improvement to property which is not considered normal maintenance. Except for these two instances, property assessments cannot be increased by more than 2% annually.)

How does CA Proposition 8 (1978) affect me?

Proposition 8 requires the Assessor to annually enroll either a property's Proposition 13 value (factored for inflation no more than 2% annually), or its current market value as of January 1 (lien date) of each year, whichever is less. When the current market value replaces the higher Proposition 13 value on the roll, that lower value is commonly referred to as a "Prop 8 Value."

The law requires the Assessor to annually reassess all Proposition 8 properties and adjust them to reflect either their current market value on January 1st or their Proposition 13 factored base year value, which ever is less. It is important to understand that in no case may the Assessor value a property higher than its Proposition 13 factored base year value.

Although the annual increase for Proposition 13 values is limited to no more than 2% annually, the same restriction does not apply to values adjusted under Proposition 8.  Actual market value must be enrolled and any subsequent increase or decrease in market value is enrolled regardless of its percentage.  However, when the current market value of a Proposition 8 property exceeds its Proposition 13 value (factored for inflation), the Assessor simply reinstates the factored Proposition 13 value.

What do you charge?

We require no upfront fees and earn nothing if we are not successful in getting your assessed value and tax bill reduced. We only earn a fee if we are successful and we typically charge only 40-50% of the first year savings.

There are other firms that have similar fee structures or will work for less however you will find that there are very few that have near the same level of experience. The maximum amount of tax savings is the desired end result and we think you will agree that you don’t want to risk choosing an inexperienced firm as your representative.

How long will it take to get an answer from the county as to whether or not my appeal was successful?

It’s common that results could be achieved anywhere from 2-6 months depending on the time of the year of the filing. However, there are instances where we will make an appeal to The Clerk of the Assessment Appeals Board and this could take between 4-18 months.

If I could do this myself, then why should I hire you to do it for me?

We specialize exclusively in property tax assessment appeals and are used to dealing with the (many times) cumbersome government rules and regulations. Some of our clients have told us that they have appealed their own tax bills and have seen only marginal results.

What approaches do Appeal Assessors use to calculate this reduction?

Comparative Sales Approach

In this method the sale of the subject property or sales of other similar possessory interests reasonably close to the effective date of value are used to determine the value. Contract rent paid on the property is treated as another assumed obligation of the buyer and must be valued at its present worth and added to the sale price. Any other obligations assumed by the buyer under the agreement would also be valued and added to the sale price. Any benefits to the buyer, such as salvage value at the end of the lease, would also be given a present value, but be deducted from the sales price.

It is also possible to value the taxable possessory interest indirectly by comparing the subject to sales of similar fee property. As a final adjustment, the present worth of the right of the government to take back the property at the end of the term of possession must be deducted from the value. 

Income Approach

The possessory interest is valued either directly by capitalizing all future net income that the possessory interest is capable of generating under typical management during the estimated term of possession, or indirectly by first capitalizing the net income to estimate the fee value and then deducting the present worth of the government's rights subsequent to the anticipated term of possession.

The most common income method is to value the possessory interest directly by capitalizing the economic income stream for the reasonably anticipated term of possession. In this method we are measuring only those rights "possessed" by the tenant and are excluding any non-taxable rights retained by the governmental landlord. The critical estimates in this approach are:

Economic Rent - estimated from rental rates recently negotiated in a competitive market, less any anticipated expenses by the landlord.

The reasonably anticipated term of possession - the term estimate based on the intent of the public owner and the possessor, as indicated by such evidence as the history of the property's use, the policy of the public agency administering the lands, and the actions of the possessor.

Capitalization rate - a rate that expresses the relationship between income and value.

Possessory Interest Value
=
Economic Rent
X
Present Worth Factor
(@ the Capitalization Rate for the Reasonable Term)

Cost Approach

In the cost approach the land value is estimated using the comparative sales or income methods and the reproducible property value is estimated by replacement cost new less accrued depreciation and less the present worth of the estimated value, if any, of such property at the termination of possession. The two components are added together to arrive at a total value for the possessory interest.

The valuation approach used will vary depending on the type of interest being valued and the estimated reasonable term of possession.

For specific information on a possessory interest assessment please contact the Assessor's office.

Should I continue making my scheduled property tax payments even though I am appealing my assessed value?

Yes! The County will impose penalties if your property taxes are not paid per the required schedule even if you have filed an appeal.

If you have any other questions, please contact us here.