By Brooke M. Pollard and Connor Inlow

At TLD Law, we manage numerous assessment appeals across multiple counties, offering critical assistance to property owners who believe, among other reasons, that their property has been either assessed above the property’s fair market, or incorrectly reassessed due to a change in ownership. Here, we’ll outline the basics of assessment appeals, the current landscape, the significance of appealing, and essential information on associated costs and exemptions.

1. What is an Assessment Appeal? An assessment appeal is a formal process where property owners challenge, among other

things, that the assessed value of their property or challenge that no change in ownership occurred, typically arguing that the assessed value is higher than its fair market value or that the applicant met an exclusion such that there was no change in ownership and no reassessment should have occurred. Accurate assessments are crucial because they directly influence property taxes. When property owners disagree with the valuation or reassessment, they have the right to file an appeal, potentially resulting in lower taxes.

2. Current Status of Assessment Appeals and Backlog

In recent years, there has been a significant backlog in assessment appeals due to new laws, the high volume of filings, staffing shortages at the assessor’s office, and prolonged administrative processes. These delays can stretch out the timeline for resolving appeals, often taking several months or even years, depending on the jurisdiction. TLD Law is actively managing numerous ongoing appeals, monitoring each case closely as they progress through the often lengthy review process.

3. How Many Appeals Are We Handling?

TLD Law currently handles a wide array of assessment appeals, including several dozen cases spanning numerous counties across Southern California, providing comprehensive support to both residential and commercial property owners.

Filing an assessment appeal is essential for several reasons:

• Tax Savings: An over-assessed or reassessed property leads to higher taxes. A successful appeal can significantly reduce this burden. Property taxes are paid annually, so decreasing this burden will save the applicant money year over year.

• Refunds: In some cases, refunds are available for the years in which the applicant overpaid on their property taxes.

• Estate Planning: Property tax reductions can benefit both the applicant and their children should they successfully keep a lower tax basis for generations.

5. Costs of Filing an Assessment Appeal

The cost to file an appeal varies by county, typically ranging from $30 to $60. These fees are minor compared to the potential tax savings. However, it’s also important to consider additional legal or appraisal fees that may be necessary depending on the complexity of the appeal.

6. Key Exemptions and Transfers

Several types of property transfers and exclusions can affect property reassessments, which is why it’s important to understand these rules when filing an appeal. Some of the most common exclusions include but are not limited to:

• Spousal Exclusions: Transfers between spouses are generally excluded from reassessment, avoiding any increase in property taxes.

• Parent-to-Child Exclusion: Certain transfers from parent to child can qualify for reassessment exclusions.

• Over 55 Transfer of Basis: Under California’s Prop 19, homeowners aged 55 or older can transfer the assessed value of their primary residence to a new home of equal or lesser value if the applicant meets specific criteria.

• Co-Tenants/Joint Tenant Exclusions: In some cases, a transfer between joint tenants, tenants in common, or co-tenants may qualify for exclusion, preventing reassessment.

• Entity Transfers with Proportionate Interests: Generally, transfers in which the proportional ownership interests in the real property transferred remain the same before and after the transfer, is excluded from a change in ownership and can also avoid reassessment.

Conclusion

Navigating the assessment appeal process requires in-depth knowledge of property tax law and keen attention to deadlines and filing procedures. TLD Law is dedicated to guiding property owners through these challenges, ensuring their properties are fairly assessed while maximizing potential savings. For more information or to discuss a specific assessment appeal, contact Brooke Pollard at [email protected] or Connor Inlow at [email protected] today.