This is no April Fool’s Day joke! When home values go south, one positive thing for current homeowners may be the chance to lower their property tax. You might have seen advertisements that offer to lower your property tax for a fee anywhere from $100-$300…don’t be fooled!!!… Did you know that you can lower your property tax for FREE (or just a small amount for filing fee)? And, it’s simple to do!First, download the property tax appeal application from your county’s tax assessor office (see links below). Print out the form and complete the information about your property. You will be able to find all of the information needed on your property tax bill. Some counties websites allow you to submit the form online.
Secondly, you will be asked to provide three sales information of similar properties in your neighborhood in support of your claim. There are a number of ways you can search for this information if you are willing to spend hours on the Internet or go to County Treasurer’s Office to find public records. A much easier solution is to call up your favorite Realtor who has the information readily available for you.
There is specific time period which the application must be filed. Please be sure to check with your county’s assessor office. Generally speaking, the formal appeal period is between July and Septermber, some counties through November.
The appeal process may take anywhere from 4 weeks to 3 months depending on the volume the office is handling. It does not hurt to call and follow-up on the status from time to time.
If you choose to appeal your assessment, you must pay your tax installments in full by the appropriate deadlines; otherwise, you may incur penalties while the case is on appeal. If your appeal is granted, a refund will be issued to you.
For your convenience, I have listed the following links to the property tax appeal forms for counties in the Bay Area. Alternatively, you may Google “_____ county property tax appeal” – make sure you enter the official website of the county assessor’s office.
San Francisco San Mateo Santa Clara Alameda Contra Costa
For more details, here is a complete guide on California Residential Property Assessment Appeals published by California State Board of Equalization (Pub. 30).
Don’t forget… your second installment of property tax is due on April 10th!
2 comments:
Hi, Annie: this information is very helpful. I have two questions:
1) we paid $800K recently for a new townhouse, does that mean we'll pay tax based on $800K, or the appraisal value could be somewhat lower?
2) our neighbor bought an identical unit for $400K because through low income housing program, does that mean they will pay tax based on $400K? Alternatively can we use their transaction record to lower my tax bill?
Thanks,
Hi Tenzilla,
Your property tax is based on the "assessed value" of the property, which could be different from "appraised value" (in which banks used during a purchase or refinancing) and "purchase price" (in which the buyer actually paid for the property). However, if you purchased your property less than a year ago, the county may likely to use the purchase price to determine your property tax.
your neighbor's property that was purchased at below-market rate (BMR) is assesssed differently than market rate properties. Their assessed value cannot exceed the BMR value. With that said, you may not be able to use a BMR transaction to justify the market value of your property.
Annie W. Chang
Prudential California Realty
415.652.7199 | Direct
650.475-5611 | Fax
annie@AnnieRealEstate.com | Email
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