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April 2012 REAA Dinner Meeting
“Appraising for Assessment Appeals”
Bill Silva, from the Sacramento County Assessor’s Office,
and Bill Rousseau, from the Sonoma County Assessor’s
Office, gave a great presentation about assessment appeals
and answered questions from our group. Thank you to Bill and
Bill for all the great information.
The Basics:
Prop 13 established a “Base Year” as 1975 for the
year the property transferred or had new construction. The
“Base Year Value” is increased by an inflationary
factor not to exceed 2% each year, creating a Factored Base
Year Value (BYVF).
Prop 8 allows for a temporary reduction in the assessed value
of real property when market value declines below the property’s
BYVF. The Prop 8 adjustment is NOT subject to the 2% increase
limit; therefore the assessed value can return to the BYVF
at any rate, but cannot increase over the BYVF.
Important Dates and Rules:
· Assessment Appeals may be filed between July 2nd
and November 30th
· Assessments are based on the value of the property
as of the prior January 1st
· Comparables used must have sold no later than March
30th of that same year
· A review of assessed value may be requested at no
fee; a formal Assessment Appeal is $30.
Examples of assessments involving properties declining in
value are available on the Sacramento County Assessor’s
Office website at:
http://www.assessor.saccounty.net/DeclineinValueReassessments/SAC_ASR_DF_Decline_Value
and on the Sonoma County Assessor’s Office website at:
http://www.sonoma-county.org/assessor/
By law, all assessment appeals must be resolved within a
two year time period. If a prior year is not yet resolved
and it is within the filing period for the following year,
a new appeal should be filed for that year in order to protect
the property owner’s appeal rights.
Tips for Appraisers:
· Help educate the owner about Prop 13, Base Year
Values, Market Value, and the difference between Prop 8 (decline
in value) and Base Year appeals
· Use a general purpose form – not a Fannie Mae
form
· Meet with the Assessor well before a hearing date
has been set
· Bring 7-10 copies of your report and any other materials
to the hearing – including a current resume
· Don’t ask questions that you don’t know
the answer to
· Dress professionally, act impartially, and keep
emotion out of it!
· You may attend a hearing prior to appearing –
they are open to the public. Or, check out this video:
http://www.boe.ca.gov/info/AssessmentVideo/AppealAssessmentIndex.html
· Remember, all documents submitted to the Appeals
Board (including your appraisal) become public documents…
Additional Reminders courtesy of REAA Member Ryan Lundquist:
· The Appeal deadline for Placer County is earlier
– September 15th!!!!
· Don't worry about listing the land value in typical
Prop 8 decline situations
· The Prop 8 Decline in Value form is free and turned
into the Assessor's Office on Power Inn Road. This form is
NOT an appeal. If a home owner only fills out this form and
the deadline to appeal on November 30 passes, there is no
recourse for the owner (an appeals hearing is not possible
by filling out only the Prop 8 form). Make sure to encourage
use of the Application for Changed Assessment (formal appeal)
form before November 30 comes. Property owners can try the
free Prop 8 form, but they should file a formal appeal if
they have not settled with the Assessor before November. The
Application for Changed Assessment is mailed or turned in
to the Assessment Appeals Board in Downtown Sacramento.
See more of what Ryan has to say on the REAA Forum on Yahoo
groups (topic: Property Tax Tidbits), or here:
http://sacramentoappraisalblog.com/category/property-taxes/
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