Upcoming Deadlines for Informal Property Tax Review

Several counties in California have upcoming deadlines for informal property tax reviews:

• Alameda County - April 10
• Orange County - April 30
• San Diego County - May 30

The application period for a formal assessment appeal commences in all counties in California on July 2nd. All property owners should review the assessed value of their properties, especially those purchased in the last few years, to determine whether to file for an informal and/or formal review.

In 1978, California voters passed Proposition 8, a constitutional amendment to Article XIII A that allows for a temporary reduction in the assessed value when real property suffers a decline in value. A decline in value occurs when the market value of the property is less than the assessed value as of January 1st of the applicable year. Market valuation based on comparable sales to support the request must be dated no later than March 31st of the applicable year.

Nearly all counties provide an informal and formal process for a determination of a requested Proposition 8 reduction. The informal process typically involves filling out an application for a reassessment, which is generally handled by the County Assessor's office. The deadline for an informal application varies significantly between counties. The formal process involves an independent review and hearing by a hearing officer. The filing period for a formal review in all counties commences on July 2nd and closes on either September 15th or November 30th. As appeals are typically scheduled in the order filed, property owners should have their appeal ready for filing on July 2nd if possible.

An appraisal is often advisable for high-value properties to support a larger reduction, which may require several weeks. While the applications for the informal and formal processes are relatively simple, property owners should plan ahead to make sure they do not miss the applicable filing deadline.