Remember what Proposition 8 is? Prop. 8 states that if your property's market value is less than the assessed value, you have the right to apply for a reduction of the assessed value of your property. You have taken the initial step of submitting a "Decline-in-Value" application to the County Assessor's Office. You listed the comparable sold properties as you should, signed the forms and submitted the request before the deadline. You wait with anticipation and the response to your letter finally arrives from the County of Los Angeles, Kenneth P. Hahn, Assessor.
Opening it you find "The Proposition 8 (Decline-in-Value) application which you submitted has been reviewed. It has been determined that a reduction in the assessed value of your property is not warranted at this time." What do you do now? Fortunately the Assessor's Office was kind enough to enclose an Appeals Form.
Many homeowners will decide that the process is too intimidating and drop the whole thing. Not you, however. It has now become an issue of principle and possibly of hundreds of dollars per year. You are going to file the appeal with the Assessment Appeals Board. The Board, being an independent agency established by the Board of Supervisors to decide opinion of value differences between property owners and the Assessor's Office, may be just a little friendlier to you and your pocketbook.
One thing you should know is that you may have a representative appear before the hearing officer on your behalf. The appeals form must be completed with your authorization of the individual or company to act on your behalf.
The appeals form is self explanatory, but all the boxes must be completed or the application may be rejected and/or the appeal denied. Filing date for the appeal is between July 2 and September 15. Information necessary to complete the form is found on your tax bill. When you submit the form, you do not need to supply the Appeals Board with any information regarding other properties. If the property value is above $100,000, the assessor may initiate an exchange of information.
You also may request an exchange of information between the Assessor's Office and yourself. If you plan to request information from the Assessor's Office, it must be done 20 days prior to your hearing. If you want this exchange of information you must submit comparable sales to support the value. Property transfers during the past two years will be available to you at the Assessor's Office. There is a $10.00 fee to inspect the list of transfers.
As you may know, a number of foreclosure sales have affected property values in Southern California. In conversation with the Assessor's Office, I was told foreclosures may not be considered legitimate comparable sales. Be forewarned. Also, if you appeal the assessed value of your property and the board increases your assessed value . . . there is no appeal as to the increase.
Do your homework, research the facts and know the value, though value is opinion based. Currently the Board is working on assessments for 1996. You may be looking at a possible two year wait before your appeal is heard. If heard and your assessed value is reduced, the county will retroactively refund the taxes paid. Pay your property taxes as stated on your tax bill, even if you are in the appeal process. Good luck.
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