Time again for those decline-in-value appeals





The filing period to appeal what could be incorrect property tax assessments opened July 2.

The tax bill that property owners will receive in October will be based on the assessed values. The taxes are at least 1 percent of the assessed value. For example, if an incorrect assessed value is reduced through the assessment appeal process by $100,000, then the annual tax bill will be reduced by approximately $1,000.

Almost 20 percent of the assessment appeals in Los Angeles and Ventura Counties in the 2009-2010 fiscal year resulted in reduced assessments, the data show.

Property owners who purchased real estate in California when the market was substantially higher are candidates to have their values reduced under a provision of California law called Proposition 8, or decline-in-value. To establish a decline, the market value must be lower on Jan. 1 than the price at which the property was purchased plus an allowance for inflation.

For example, a condominium purchased in 2005 for $300,000 that could sell on Jan. 1 this year for only $200,000 should rightly have its assessed valuation reduced by over $100,000. If the assessor reduces the value, say, to $250,000, an appeal by the property owner may reduce the value even further.

Contact your county assessor to request a decline-in-value application. In L.A. County, visit www.assessor.lacounty.gov. In Ventura County, visit the website www.assessor.countyofventura.org.

Evidence such as comparable sales that support a reduced value should be submitted with the decline in-value form. Contact the county clerk to file the appeal by following the link provided on the county assessor’s website.

Regardless of whether you file an appeal or not, if your property is in Ventura County you will receive an assessment notice by Aug. 1 with the value of the real estate as it will appear on the upcoming tax bill.

Property owners in Los Angeles County will receive the values on the tax bill that is mailed on Oct. 1. You can obtain the assessed values earlier, in mid-July, by contacting the assessor’s office.

Before you file an appeal or a decline-in-value application, compare your assessed value to the Jan. 1 market value. Last year in Ventura County, more than 40 percent of the appeal applications were either withdrawn by the applicant or ruled invalid. General market trends such as median sale price data will not support a reduction because property types and neighborhoods differ.

For residential properties, start with comparable properties in your neighborhood that sold on the open market around the first of the year.

Comparables that sold more than 90 days after Jan. 1 are not allowed because they aren’t considered current enough. You can obtain the sales data for your neighborhood from various sources.

The assessor, for example, keeps lists of sales in each neighborhood that are available to the public. Real estate brokers and certain real estate websites are also sources of data.

When making calculations, adjust for any relative difference in your property and each comparable. Consider property condition, amenities, location, size differences, and so forth. For example, if a comparable has a pool and your property does not, the sale price of the comparable has to be adjusted downward.

If you work with an agent or enter discussions with the appraiser, make certain he or she is aware of all of the relative differences between your property and the comparables that only an owner may be aware of.

Attorney Debra C. Cohen can be reached at AttorneyDebraC. Cohen@gmail.com.



Leave a Reply

Your email address will not be published. Required fields are marked *