Q: What is a Decline in Value Appeal (Proposition 8) ?

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A: A Decline in Value Appeal challenges the assessed value as of January 1 of the current tax year. A "decline in value" occurs when the current market value is less than the current assessed value as of January 1. It is not a permanent reduction and is not retroactive to previous years.  

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Q: What is a Base Value Appeal?

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A: Whenever a property is purchased, undergoes a change in ownership, or is newly constructed the assessor establishes a new base value. An owner has the right to challenge this new base value if they feel it is not reflective of market value as of the date of transfer or construction occurred. A successful base value appeal is a permanent reduction in assessed value.

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Q: How are annual property tax assessments calculated in California?

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A: Taxable value of real property is determined by the Factored Base Year Value or current market value as of January 1 of that tax year. The assessor must enroll the lessor of the two.

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Example: A buyer that purchased a home in 2021 for $1,000,000 would have a factored base year value of $1,000,000 + 2% for each successive year. If the assessor's office deems that the current market value as of January 1 of the tax year is less than the factored base value, the current market value will be enrolled. (This is known as a Proposition 8 value). If the assessor's office deems that current market value as of January 1 of the tax year exceeds the factored base value, then the factored base value will be enrolled. (This is known as a Proposition 13 value).

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Q: How much can the Assessor increase my property tax assessment each year?

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A: Under Proposition 13, the Assessor can raise the assessed value a maximum of 2% a year from the base value. 

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Q: Why did my property tax assessment go up more than 2% from last year?

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A: The 2% increase per year applies only to the base values. If a property is under a Proposition 8 value it can be increased more than 2% from the previous year as long as the base value has not increased 2% per year. So a property may be under a large Proposition 8 reduction for one year and then be fully restored to the factored base year value the following year. 

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Q: Why are my neighbor's property taxes so much lower than mine?

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A: It is likely that your neighbor's home was purchased at a much lower price and therefore has a much lower factored base value. If the factored base value is less than current market value, the Assessor will enroll the factored base value.

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Q: Is every property a good candidate for to file a property tax appeal?

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A: No, not every property is a good candidate for an assessment appeal reduction. Properties that were purchased at high points in the real estate market and have market data to support a lower assessment or have experienced overall decline in value due to other factors are typically better candidates for assessment appeal reductions.

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Q: Is there a deadline to file my appeal?

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A: Yes, there is a deadline to file the appeal. Most counties throughout California have a September 15th or November 30th deadline. This deadline is specific to your county. When challenging a supplemental property tax assessment, the appeal must be filed within 60 days of Notice of Supplemental Assessment from the Assessor's Office.

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Q: How long does the appeals process take and do I need to pay my property taxes?

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A: The appeals process typically takes anywhere from 6-12 months and can vary from each county. It is important to pay your property taxes when they are due. 

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Q: How much can I expect to save?

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A: Your potential tax savings are approximately 1.2% of your reduction. For example:

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• ​​$50,000 in assessment reduction = $600 savings per year

• $250,000 in assessment reduction = $3,000 savings per year

• $1,000,000 in assessment reduction = $12,000 savings per year

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Q : What are the fees for your services?

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A: Our fees are entirely contingency based. If we cannot save you any money, there are absolutely no fees for our services.

 

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