Property Tax Appeals
Appealing Your Property Tax Assessment: What You Need to Know
A Complete Guide to Challenging Unfair Property Valuations in California
Property taxes are one of the largest expenses California homeowners face, and many properties are assessed at values higher than their actual market value—especially after market downturns or when assessor valuations don't reflect property issues. If your property tax bill seems too high, you may have grounds to appeal. This guide explains how property tax appeals work, when you should consider appealing, and how professional appraisals can help you win.
Understanding Property Tax Assessments in California
How Property Taxes Are Calculated
California property taxes are based on your property's assessed value multiplied by your local tax rate. Under Proposition 13, your property's assessed value can only increase by 2% per year (plus improvements) until the property is sold.
Basic formula:
Property Tax = Assessed Value × Tax Rate
Example:
Assessed Value: $1,000,000
Tax Rate: 1.25% (varies by location)
Annual Property Tax: $12,500
When Assessments Change
Your property's assessed value can increase due to:
Sale or transfer: Property is reassessed to current market value when sold
New construction or improvements: Additions or major renovations trigger reassessment
Change in ownership: Certain ownership changes trigger reassessment
Annual increase: Automatic 2% inflation adjustment (under Prop 13)
Your assessed value can also be reduced if market values decline. This is where appeals come in.
When Should You Appeal Your Assessment?
Your Property Is Overassessed
If you believe your property's assessed value exceeds its current market value, you have grounds to appeal. Common situations include:
Market Downturns
Real estate markets fluctuate. If your area has experienced declining property values since your last assessment, your property may be overassessed.
Property Damage or Issues
Foundation problems, water damage, earthquake damage, fire damage, or other issues can reduce property value. If these aren't reflected in your assessment, you may be overtaxed.
Incorrect Property Information
Assessor records sometimes contain errors—wrong square footage, incorrect number of bedrooms/bathrooms, or inaccurate lot size. These errors can inflate your assessment.
Comparable Sales Evidence
If similar homes in your neighborhood have sold for significantly less than your assessed value, this suggests overassessment.
Functional Obsolescence
Poor layout, outdated systems, or design deficiencies can reduce value below other comparable properties. If the assessor hasn't accounted for these factors, appeal may be warranted.
How Much Can You Save?
A successful appeal reduces your assessed value, which directly reduces your property tax bill.
Example:
Current Assessed Value: $1,000,000
Successful Appeal Reduces To: $850,000
Reduction: $150,000
Tax Rate: 1.25%
Annual Savings: $1,875
Over several years before your assessment increases again, this adds up to thousands in savings.
The California Property Tax Appeal Process
Important Deadlines
Regular Assessment Appeals:
Filing Period: November 15 - February 15 (for the current tax year)
Example: To appeal your 2024-25 tax bill, file between November 15, 2024 and February 15, 2025
Supplemental Assessment Appeals:
Must be filed within 60 days of receiving the supplemental assessment notice
These occur when property is purchased or improved
Decline-in-Value Appeals:
California law allows temporary reduction if market value drops below assessed value
Same filing deadlines as regular appeals
Assessment returns to Prop 13 factored base when market recovers
Missing the deadline means waiting another full year to appeal. Mark your calendar!
Step-by-Step Appeal Process
Step 1: Get Your Assessment Information
Obtain your property tax bill showing current assessed value
Review assessor's property records for accuracy
Check comparable sales in your area
Step 2: Gather Evidence
Professional appraisal (strongest evidence)
Recent comparable sales data
Documentation of property issues or damage
Photos of condition problems
Repair estimates if applicable
Step 3: File Your Appeal
Complete Assessment Appeals Application (available from county assessor)
Submit before the February 15 deadline
File with your county Assessment Appeals Board
Include supporting documentation
Step 4: Prepare for Hearing
You'll receive a hearing date (typically 3-6 months after filing)
Organize your evidence
Prepare your presentation
Consider whether you'll appear yourself or hire representation
Step 5: Attend the Hearing
Present your case to the Appeals Board (typically 3 board members)
Explain why assessment exceeds market value
Present evidence (appraisal, comps, property issues)
Assessor will present their position
Board asks questions
Step 6: Receive Decision
Board decision is typically mailed within 2-4 weeks
If successful, your assessment is reduced
If denied, you may have right to further appeal (State Board of Equalization or Superior Court)
The Role of Professional Appraisals in Tax Appeals
Why Appraisals Are Powerful Evidence
Assessment Appeals Boards give significant weight to professional appraisals because:
Independent and Objective
Licensed appraisers have no stake in the outcome and follow strict USPAP standards.
Detailed Market Analysis
Appraisals include comprehensive comparable sales analysis, market trend data, and documented methodology.
Credible Expertise
Appraisers are trained, licensed professionals with expertise in property valuation.
Defensible Documentation
A thorough appraisal report withstands scrutiny and challenges from the assessor's office.
What the Appraisal Must Show
For tax appeal purposes, the appraisal must establish:
Market Value as of Lien Date
In California, the "lien date" is January 1 of the tax year. Your appraisal must value the property as of that specific date.
Example: For 2024-25 taxes, the lien date is January 1, 2024. Your appraisal should value the property as of that date, not when you order it.
Market Value Below Assessed Value
The appraisal must demonstrate that true market value was less than the assessed value on the lien date.
Appraisal vs. Other Evidence
Comparable Sales Analysis
You can research comparable sales yourself, but professional appraisals carry more weight because:
Appraisers make proper adjustments for differences
Sales are verified and analyzed professionally
Methodology is documented and defensible
Online Valuations (Zillow, Redfin)
Assessment Appeals Boards typically don't accept automated valuations as credible evidence. They want independent professional analysis.
Real Estate Agent Opinions
Broker price opinions may support your case but aren't as strong as licensed appraisal reports.
How to Choose an Appraiser for Tax Appeals
Look for Tax Appeal Experience
Not all appraisers regularly handle tax appeal work. Choose someone who:
Understands assessment appeal procedures
Has testified before Assessment Appeals Boards
Knows how to value property "as of" a specific past date
Understands what evidence Appeals Boards find persuasive
Verify Credentials
Ensure the appraiser is:
Licensed or certified in California
In good standing (check BREA website)
Insured and bonded
Familiar with your local area and property type
Discuss Fees Upfront
Tax appeal appraisals typically cost $500-$1,000+ depending on property complexity. Some appraisers work on contingency (percentage of tax savings), but most charge flat fees.
Consider the cost vs. potential savings:
Appraisal cost: $750
Potential annual tax savings: $2,000
Payback period: Less than 6 months
If you're appealing a high-value property or believe assessment is significantly too high, the ROI is excellent.
Common Reasons Appeals Succeed
Market Decline Evidence
If the real estate market in your area declined between when your property was purchased (or last reassessed) and the lien date, you may have a strong case.
Example:
Purchased property in 2022 for $1.2 million (becomes assessed value)
Market declines 15% by January 2024
Current market value: approximately $1,020,000
Assessment: Still at $1,224,000 (Prop 13 base plus 2%)
Grounds for appeal: $200,000+ overassessment
Property Condition Issues
Damage or deferred maintenance that reduces value:
Foundation cracks or settling
Roof damage or leaks
Plumbing or electrical problems
Earthquake or fire damage
Environmental issues (mold, water intrusion)
Document with photos, contractor estimates, and disclosure statements.
Assessor Errors
Check your property's record card for:
Incorrect square footage
Wrong number of bedrooms or bathrooms
Inaccurate lot size
Incorrectly recorded improvements
Wrong property classification
Simple errors can lead to significant overassessment.
Superior Comparable Sales
If multiple similar properties sold for less than your assessed value around the lien date, this is strong evidence of overassessment.
Common Reasons Appeals Fail
Missed Deadlines
Filing even one day late means automatic denial. Mark calendars, set reminders, and file early.
Insufficient Evidence
Saying "my taxes are too high" without supporting data won't succeed. You need concrete evidence that market value is below assessed value.
Misunderstanding the Lien Date
Getting an appraisal dated today when you need value as of January 1 won't help. The effective date must match the lien date.
Comparing to Different Property Types
Comparing your single-family home to condo sales, or your dated property to newly renovated comps won't be persuasive. Comparables must be truly similar.
Disagreeing With Tax Rate
Appeals address assessed value, not tax rates. You can't appeal because you think the tax rate is too high—only if your property's assessed value exceeds market value.
Do You Need a Lawyer or Tax Consultant?
Representing Yourself
Many homeowners successfully appeal without professional representation, especially when:
The overassessment is clear
You have a strong appraisal report
The case is straightforward
You're comfortable presenting evidence
Hiring Representation
Consider professional help if:
Property is high-value or complex
Potential tax savings are substantial
You're uncomfortable with hearings
The assessor is contesting your evidence
You've previously appealed unsuccessfully
Tax appeal firms typically work on contingency (25-35% of first year's tax savings). Compare this to the cost of doing it yourself with a professional appraisal.
What Happens If You Win?
Tax Reduction
Your assessed value is reduced to the value determined by the Appeals Board (typically the appraised value if that's your evidence).
Your property tax bill is recalculated based on the new, lower assessment.
Refund for Overpayment
If you already paid taxes based on the higher assessment, you'll receive a refund for the overpayment.
Duration of Reduction
Temporary Reduction:
If you won based on market decline, the reduction lasts until market values recover. The assessment will increase back toward your Prop 13 base year value as the market improves.
Permanent Reduction:
If you won based on assessor error (wrong square footage, etc.), the correction is permanent.
Future Years
You may need to reapply in subsequent years if market values remain below your assessed value. Each tax year requires a new appeal.
What If You Lose?
Further Appeal Options
If the Assessment Appeals Board denies your appeal, you may be able to appeal to:
State Board of Equalization: For certain types of disputes
Superior Court: File lawsuit challenging the board's decision
These further appeals require legal representation and have specific filing deadlines and procedures.
Reapply Next Year
Even if you lose, you can file a new appeal for the next tax year with additional or better evidence.
Tips for a Successful Appeal
File Early
Don't wait until February 14. File in November or December to ensure you meet the deadline and have time to gather evidence.
Get a Quality Appraisal
Invest in a thorough, professional appraisal from an experienced appraiser. This is your strongest evidence.
Organize Your Evidence
Create a clear, organized presentation:
Cover page summarizing your case
Professional appraisal report
Comparable sales data
Photos documenting issues
Repair estimates or disclosure statements
Assessor's property record showing errors
Be Professional and Factual
Approach the hearing professionally:
Dress appropriately
Be respectful to board members and assessor's representative
Stick to facts and evidence
Don't get emotional or argumentative
Answer questions directly
Practice Your Presentation
Rehearse what you'll say:
Opening statement (2-3 minutes)
Key evidence highlights
Response to likely questions
Closing summary
Understand the Assessor's Position
The assessor will present their case. Be prepared to respond to:
Their comparable sales selections
Their assessment methodology
Their interpretation of property condition
Los Angeles and Orange County Specifics
Where to File
Los Angeles County:
Assessment Appeals Board
225 N. Hill Street
Los Angeles, CA 90012
Contact info and forms at assessor.lacounty.gov
Orange County:
Assessment Appeals Board
12 Civic Center Plaza
Santa Ana, CA 92701
Contact info and forms at ocassessor.com
Local Market Considerations
LA and OC real estate markets can vary significantly by neighborhood. Your appraisal should focus on your specific micro-market, not countywide trends.
Both counties have experienced periods of rapid appreciation and occasional declines. Understanding your local market cycle is key to knowing when to appeal.
Frequently Asked Questions
Q: Can I appeal every year?
A: Yes, you can file an appeal each tax year if you believe you're overassessed. However, repeated unsuccessful appeals may hurt credibility.
Q: Will appealing cause the assessor to scrutinize my property more closely?
A: No. The assessor won't retaliate or increase scrutiny because you exercised your legal right to appeal.
Q: What if I recently purchased the property?
A: If you just bought the property, it was likely reassessed to the purchase price. However, if the market declined immediately after purchase, or if there were issues discovered post-purchase, you may still have grounds to appeal.
Q: Can I appeal supplemental assessments?
A: Yes. Supplemental assessments (for new construction or improvements) can be appealed within 60 days of receiving notice.
Q: Does filing an appeal delay my tax payment deadline?
A: No. You must still pay property taxes by the regular deadlines even if you have a pending appeal. If you win, you'll receive a refund.
Q: What percentage of appeals succeed?
A: Success rates vary, but well-documented appeals with professional appraisals have success rates of 30-60% depending on market conditions and evidence quality.
The Bottom Line
Appealing your property tax assessment can save thousands of dollars annually. If you believe your property is overassessed, the time and cost of pursuing an appeal is usually well worth it.
The keys to success are:
Meeting the filing deadline
Gathering strong evidence (especially a professional appraisal)
Presenting a clear, organized case
Understanding the process and what the Appeals Board needs to see
Don't pay more than your fair share in property taxes. If your assessment exceeds market value, exercise your right to appeal.
Need an Appraisal for Property Tax Appeal?
PCH Appraisals provides professional property valuations for tax assessment appeals throughout Los Angeles and Orange County. We understand what Assessment Appeals Boards require and prepare reports that support successful appeals.
Our tax appeal appraisals include:
Valuation as of the specific lien date (January 1)
Detailed comparable sales analysis
Market conditions documentation
Clear explanation of methodology
Support for hearing testimony if needed
Contact us today to discuss your tax appeal:
📞 (310) 344-6470
📧 info@pchappraisals.com
🌐 pchappraisals.com
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Don't wait—appeal filing deadlines are firm. Contact us now to get started.
This article is for informational purposes only and does not constitute legal or tax advice. Consult with qualified professionals regarding your specific property tax situation.
