EDITOR’S NOTE: Reprinted from an article in Forbes Magazine, MDI member Wes Nichols, CEO and Founder of Paramount Property Tax Appeal in San Diego, offers his views on Property Tax appeals. Though the focus here is on California 2024 laws, some pearls of wisdom can be gathered here for anyone with property. As Nichols says, “If you wouldn’t let the IRS do your taxes, then why are you letting the tax assessor do yours?”
Tax assessment appeals can be crucial for California property owners seeking to challenge the value assigned to their residential or commercial properties. Understanding the process and key considerations can help you navigate this complex terrain effectively.
Three important things you should know about tax appeals in California include the process, the filing deadlines and Proposition 13.
The Process And The Appeals Board
The appeals process in California begins with an application. Our firm put together a calendar with important dates and links to county assessment appeal pages, which contain application details.
The process involves presenting your case to an independent entity known as an appeals board. These boards are tasked with resolving disputes between property owners and the county assessor regarding property values. The decisions made by appeals boards are legally binding and enforceable.
Appeals boards typically conduct hearings where property tax advocates can present evidence and arguments supporting the property owner’s appeal. Compiling relevant documentation, such as recent property valuations or comparable sales data, can help substantiate your claims.
Understanding The Deadline For Filing Appeals
The deadline for filing tax appeals is a critical aspect of the process. In California, the regular appeals filing period typically commences in early July of each year across all counties and concludes on either Sept. 15 or Nov. 30, depending on which county your property is located in.
It’s imperative to adhere to these deadlines to ensure your appeal is considered, though there are exceptions to this timeline. If you receive a supplemental notice or escape notice, you must file your appeal within 60 days of the mailing date on the notice. Some counties, such as Los Angeles, allow filing within 60 days of the mailing date on either the supplemental notice or supplemental bill.
Counties typically issue supplemental notices and bills when new construction or a change in ownership occurs.
Proposition 13 And Its Implications For Property Tax Appeals
Proposition 13, a California initiative, offers protections regarding property tax increases. While Prop 13 limits increases in property tax assessments, it does not prevent property values from declining. This means that when property values decrease, property owners still have the right to appeal their assessments.
Under Prop 13, properties are assigned base year values, and annual assessments are limited to a maximum increase of 2% per year. Despite these protections, property owners can still contest their assessments if they believe the assigned value does not accurately reflect the market conditions or the condition of their property.
Understanding the intricacies of tax appeals is vital if you’re looking to challenge a property assessment. Being aware of deadlines, Proposition 13 implications and the role of appeals boards is important for any property owner. Working with a professional team who can navigate the appeals process successfully can help you potentially secure a more favorable assessment and save you money on your property taxes.
The information provided here is not investment, tax or financial advice. You should consult with a licensed professional for advice concerning your specific situation.
About Wes Nichols
Wes Nichols is the Founder & CEO of Paramount Property Tax Appeal, a consulting firm specializing in property an business tax reduction. Read the Forbes’ story HERE.