By now, Santa Clara County property owners should have received their property tax assessment notification card. Homeowners may file an appeal between July 2 and September 15.
At a local Silicon Valley Association of Realtors district meeting in Los Gatos, David Tonna related how property is assessed under Proposition 13 and he described the assessment appeals process. Tonna, who is a past president of the local trade association, was appointed by the Santa Clara County Board of Supervisors to one of three county Assessment Appeals Boards last November.
Tonna explained Prop 13 was an amendment by means of the initiative process which was approved by California voters in 1978. The proposition decreased property taxes by assessing values at their 1976 value and restricted annual increases of assessed value of real property to an inflation factor not to exceed 2 percent per year. It also prohibited reassessment of a new base year value except in cases of change in ownership, or completion of new construction. These rules apply equally to all real estate - residential and commercial.
Some reasons property owners appeal their assessments are if the market value of their property has declined and they believe their assessment is too high; if the assessor failed to enroll the purchase price; if the purchase price exceeded the property's fair market value; or if the assessor overestimated the value of new construction.
Tonna said requests for appeals cannot be considered past the Sept. 15 deadline. He noted if a property owner has been overtaxed for the past several years, but did not formally dispute their property taxes at the time, then there is nothing they can do once the appeals deadline passes. All they can do is wait until the next year to appeal their property taxes.
Property tax assessment appeals may be heard by a value hearing officer or a three-member Appeals Board, which has more formal courtroom atmosphere hearings. Appeals board members are appointed by the Board of Supervisors to three-year terms. There is no limit to the number of times they can serve. They must have a minimum of five years professional experience in the state as either a certified public accountant or public accountant, licensed real estate broker, attorney, or property appraiser with a nationally recognized professional accreditation.
The three-member panel's decision can change the assessor's appraisal of the value of residential and commercial property and the amount of property taxes property owners must pay. Since Appeals boards are quasi-judicial bodies, the decisions they make are final.
If property owners decide to appeal their property tax valuation, they need to be prepared. "It's all about preparation," said Tonna.
The property owner (appellant) needs to be sure they have all their documents, disclosures and good clear color photos. If the appeal is due to problems in the property, they need to provide evidence. Bring six copies of all documents and photos - one for each of the three board members, one for the assessor, one for the clerk and one for the attorney.
Tonna said the assessor is always right unless proven wrong. The burden of proof is on the property owner contesting the assessment. The exception is the purchase price. If the property owner says it was worth it, then the assessor must prove them wrong.
It has been reported that as of January, property owners have contested $81.9 billion worth of total assessments in Santa Clara County. Tonna indicated while there are over 5,000 appeals pending, not all of the appeals make it to a hearing. Most of the time the property owner and assessor's office settle.
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Variations of this article have appeared in local area newspapers.
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