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Len Watkins
Joshua Genser
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Offices
in Point Richmond and Emeryville
125 Park Place, Suite 210
Point Richmond, CA 94801
Phone: 510-237-6916
Fax: 510-236-9851
2200 Powell Street, Suite 890
The Watergate Office Towers
Emeryville, CA 94608
Phone: 510-237-6916
Fax: 510-236-9851
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Property
Taxes
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In
California, property is taxed, generally, at one percent
of its fair market value. However, the fair market
value is established only at the time you bought the
property. As long as you own the property, your property
taxes can increase no more than two percent (2%) each
year, unless you substantially re-build the improvements
on the property. Your property taxes may go down, however,
if the value of your property decreases.
The amount of your property taxes is an issue, therefore, if ownership
of the property has changed, you have done a significant amount of
construction on your property, or the value of the property has decreased.
Changes in ownership are the most fertile grounds for controversy.
Sometimes, there is a question of whether ownership really has changed.
If, for example, you transfer title to your property to a trust or
a partnership where the prior ownership has the same beneficial interest
after the transfer, then there is no property tax reassessment. Another
common question is whether the transfer of ownership is of a type
that is exempt from reassessment. Transfers from parents to children
are exempt, but only if done correctly.
If the property is subject to reassessment, for any reason, the issue
is the fair market value of the property. For many properties there
are readily available comparable sales, so the fair market value
of the property can be established by a real estate appraiser relatively
easily. Other properties, such as some business properties, including
business personal property and unique residential properties, can
be very difficult to appraise. In those cases, the disagreement between
you and the Assessor can mean thousands of dollars in property tax
liability.
Property tax assessments may be appealed by filing a petition with
your local county Assessment Appeals Board. Generally, for real property,
such appeals must be filed by September, but there are different
deadlines for different types of property tax assessments. The taxpayer
is then entitled to a hearing within two years of the filing of the
appeal. At the hearing, the Assessor will present evidence supporting
its appraisal of the property, and the taxpayer will be given an
opportunity to present evidence of a different value. There is no
requirement that the taxpayer be represented by an attorney, but
the taxpayer has the right to be represented by an attorney if desired.
Genser & Watkins LLP has represented
taxpayers in multi-million dollar property tax assessment appeals,
and has published a law review article on a fairly technical aspect
of business property tax assessments. Call 510-237-6916 to make an
appointment. |
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