What is a property tax assessment appeal?
A property tax assessment appeal is an application made to the local Assessment Appeals Board (AAB) for a reduction in the assessed valued of a property. When an assessment reduction is granted, the local Auditor-Controller refunds any property tax over-payment to the taxpayer.
What are the different types of property tax assessment appeals?
A DECLINE-IN-VALUE application is filed when the current market value of your property is less than the current assessed value as of January 1 of the filing year.
A BASE-YEAR application is filed to appeal the Assessor’s initial (supplemental) assessment and is most commonly filed when the Assessor enrolls a value higher than the purchase price. However, there are circumstances where a Base Year appeal is warranted even though the Assessor enrolled the purchase price.
A CHANGE OF OWNERSHIP application is filed to appeal an Assessor’s reassessment when in fact a reassessment should not have occurred or to appeal the assessed value of the new reassessment.
A MISFORTUNE & CALAMITY (M&C) application is generally filed when a property suffers severe physical damage, i.e., fire or flood. However, there may be circumstances under which an M&C claim/appeal may be filed where there is a lack of physical damage. To initiate an M&C, a claim must first be lodged with the Assessor. If the Assessor’s response is unsatisfactory, then an M&C application may be filed with the AAB.
A NEW CONSTRUCTION application is filed to contest the Assessor’s initial (supplemental) valuation of the new construction that has occurred.
What is the appeals process?
An application is filed with the AAB. A subsequent hearing takes place with the applicant (or applicant’s authorized agent), an Assessor’s representative(s), and a Hearing Officer or Full Board Panel. At the hearing both sides present evidence to support their respective valuation of the subject property. A decision may or may not be rendered at the hearing.
How long does the process take?
By California statute, the AAB has up to 2 years to schedule your case from the date of filing. Scheduling varies by county.
Can I file an assessment appeal application myself?
Yes, contact your local AAB for more information.
What exactly does Professional Tax Appeal do?
We file the appropriate paperwork per the local requirements. We then prepare a written case arguing for a specific reduction in the client’s property tax assessment. Prior to the hearing, the local Assessor may stipulate to a reduced assessment that is acceptable to us. Where no acceptable stipulation is proffered, we will argue the case in person.
Do I need to be present for the hearing?
Yes, if you represent yourself. No, if you are represented by an authorized agent.
How long is the property tax reduction good for?
A “Decline-In-Value” appeal that generates a reduction produces a refund only for the year in which the appeal is filed. The Assessor will reevaluate your assessment level each year. The Assessor may at his discretion roll over a reduced assessment to the following year or years, thus lowering your property taxes in subsequent years.
A “Base-Year” appeal reduction lowers the initial assessed value after purchase (Base-Year Value) and generates assessment reductions going forward from either the date of purchase or the tax year in which the Base Year appeal is filed.
Will you take on a pending assessment appeal application?
We will do an initial case analysis. If we believe the application has merit, we will substitute for you or your current agent.
Do you do condos?
Yes, we handle all residential properties.
Do you do Personal Property?
Yes.
Is there a limit on what size case you will handle?
Each case is analyzed on its merits. However, in cases where anticipated reductions are minimal, we will recommend that the client consider filing the application him or herself.
Let’s say I want to hire you as my agent. What is required?
Clients sign a one page contract with PTA and a one page agent authorization form. For income properties, basic operating information may be requested in order to prepare a valuation for the hearing.
I’m thinking of selling my property. Will filing an application have a detrimental effect on a sale?
Unlikely. An appeal application is merely a response to a declining market.
Will filing an application effect my mortgage?
Not in any way of which we are aware.
Is my refund taxable?
Consult your tax advisor.
If I apply will my property be subject to an interior inspection?
No. We will take photos of the property’s front exterior as part of our preparation.
Will you handle assessment appeals outside California?
Yes, on a case-by-case basis.
What is your fee?
We bill a fixed percentage of the refund that the customer receives. The percentage varies per each case and is indicated in our one page contract.
How and when do you get paid?
We ask the client for payment within 21 days of client’s receipt of the refund from the Auditor-Controller.
How long does it take for me to receive a refund?
Generally, refunds are mailed out 4-6 months from the date of hearing. Refund processing varies by county.
I am behind on my property taxes. Can I still apply?
Yes. Any refund will be deducted from your then-current delinquent balance.
How do you get paid if my refund goes to pay down my delinquent balance?
We will set up a payment plan.