Background

Proposition 8 requires a temporary reduction in assessed value when a property suffers a decline-in-value. A decline in value occurs when the Market Value of your property is less than the current assessed value as of January 1st, 2008. Market Value is based on Comparable Sales that must not be dated any later than March 31 st, 2008.

Process

There is a formal and informal property tax appeal process in California. The informal process involves filing with the County Assessor while the formal process involving filing an appeal with the Assessment Appeals Board where you can choose to have a Hearing for an independent review of your property’s assessed value.

Informal Property Tax Appeal

The dates vary by County, but the informal appeal process is desirable because you might be able to achieve a value reduction with less effort. On the other hand, the informal appeal is handled by the Assessor’s office which sets the value in the first place and does not offer the independent perspective that the formal appeal process offers.

If the Assessed value is determined to be less than the Market Value, then you will be granted a property tax reduction. This reduction may be reflected in bills that are sent around the end of September and are due in December and April. However, it is more likely that you will receive a refund of your overpaid property taxes.

Formal Property Tax Appeal

Formal “Requests for Changed Assessment” are due either on September 15th or November 30th. The advantage of the formal appeal is that you will receive an independent review of your Assessed value by a Hearing Officer. The disadvantage is that the process is more formal and will take more time.

It is not necessary to provide comparables when you file your formal appeal. However, you will need the Comparable Sales (Dated no later than March 31 st, 2008) for your Hearing and\or for presentation to the Assessor. Even though not required to file your appeal, we recommend you collect and retain your comparable sales information, since it will be more difficult to obtain as time passes.

After filing your formal appeal "Request for Changed Assessment" you should be notified in 6-9 months that you are scheduled for a Hearing. When you receive this notice, you should consider contacting the Assessor's office to see if agreement might be reached on a lower Assessed value without going to a hearing. If agreement can be reached on a reduced value, you can enter into a "Stipulation Agreement" which reflects the revised Assessed value for your property for the appeal year.

Exchange of Information

Prior to the Hearing, the Assessor will request an "Exchange of Information" (you have the right to make such a request anytime after you file you appeal). The request for "Exchange of Information" requires that you provide the evidence or documents that you intend to present at the assessment appeal hearing in exchange for the Assessor's documents. The purpose of the exchange is to allow both sides to become familiar with each other's case, in advance of the hearing, so that they may be prepared to comment on opposing evidence at the time of the hearing. You will be asked to disclose includes comparable sales for similar properties to your own.  If you have additional information about differences between your property and others (e.g. improvements, age etc) this information should be provided as well.

Appeals Board Hearing

If agreement is not reached, you either present your case to a Hearing Officer (this is how the Application for Changed Assessment form will be prepared unless you override) or you present your case to the Assessment Appeals Board.

After a decision is reached you will notified if a reduction is granted. If so, you will receive a refund with interest within 6-8 weeks.

For a more detailed discussion of the Formal Appeals process, please see the California State Board of Equalization Publication 30 (http://www.boe.ca.gov/proptaxes/pdf/pub30.pdf)