Property Tax Assessment Appeal Procedures

By Gregory R. Broege and Michael P.  Kelly

Property Tax Appeal season is upon us which makes this the perfect time to review your portfolios and ensure your property tax appeals are timely filed.  Whether it be rising capitalization rates, a yet to be recovered office market, or if your property suffers from obsolescence of some kind, there may be a very good reason to consider filing a 2025 property tax appeal.  Unfortunately for taxpayers, the requirements for doing so can be unreasonably complex and difficult to follow.  In an effort to ease your pain, we’ve identified some of the more important procedural requirements which should serve as a helpful guide as you contemplate this important financial decision.      

Property Tax Assessment Appeal Procedures

In general, Assessors can make three types of property tax assessments: (1) regular assessments, (2) escape assessments, and (3) supplemental assessments. 

A regular assessment is the type made for the current tax year as of the January 1 date of valuation, also known as the “lien date.”  The appropriate assessment appeal filing period depends upon which county the property in question is located.  Applications are due between July 2 and September 15.^[i]  But, if the county assessor does not send notice of the assessed value of property prior to August 1 for the entire county, then the deadline to file an appeal is extended from September 15 to November 30. ^[ii]  (Note, the regular appeals period ends on December 1^st this year because November 30^th falls on a Sunday.)

Counties that provide this notice can change yearly.  The county assessor must notify the clerk of the county board of equalization and the county tax collector by April 1 of each year as to whether it will provide the notice by August 1.^[iii]  Thus, one year a county may have a November 30 deadline and the next year have a September 15 deadline making the exercise a potential guessing game.  The SBE produces a statewide listing each year setting forth the applicable filing deadline for each county.^[iv]

Notwithstanding any of the above dates, if a notice of assessment is not received at least fifteen days prior to the deadline to file an appeal, then an appeal may be filed within sixty days of receipt of notice or assessment or sixty days from the mailing of the tax bill, whichever is earlier.^[v]  In addition to the appeal application, the taxpayer must include an affidavit declaring that the notice was not timely received.^[vi]

The second type of assessment is an escape assessment.  An escape assessment is an increased amount in real property valuation over the regular assessed valuation.  Escape assessments typically result from a delay in the reappraisal of a property and are considered an assessment made outside the regular assessment period.^[vii]  An application appealing an escape assessment must generally be filed no later than sixty days after the date of mailing printed on the notice of assessment[viii] or the postmark date, whichever is later.^[ix] 

However, the appeal application deadline differs in the County of Los Angeles (and in counties that have adopted a resolution in accordance with Section 1605(c)).  In Los Angeles, taxpayers may file appeals no later than sixty days after the mailing date of the tax bill or the postmark date, whichever is later.^[x] 

The third type of assessment, a supplemental assessment, is an assessment made due to a Prop 13 base year reappraisal because of a change in ownership and/or completed new construction.  A supplemental assessment is supplemental to the regular roll.  Two supplemental bills will be issued if there is a change in ownership or completed new construction between January 1 and May 31.  The first supplemental assessment is based on the new base year value and the taxable value on the current roll. The second is based on the new base year value and the taxable value to be enrolled on the roll being prepared, for the fiscal year beginning July 1, following the date of the change of ownership or completion of construction. 

Supplemental assessments are considered assessments outside of the regular assessment period.^[xi]  Taxpayers must generally file an appeal no later than sixty days from the date of notice.^[xii]  Like escape assessments, in the County of Los Angeles, taxpayers must file the appeal no later than sixty days from the date of mailing of the tax bill.^[xiii]

However, an application may be filed within twelve months after the month in which the assessee is notified of the supplemental assessment.  This may occur only if the taxpayer and the assessor stipulate to error in the assessment that resulted from the exercise of the assessor’s value judgment and a written stipulation as to the full cash value is filed. 

If the taxpayer misses a deadline, an audit of the business property by a county assessor may afford the taxpayer another opportunity to contest the value of all the property, including the real property at the location.  Section 469 provides that “if the result of an audit for any year discloses property subject to an escape assessment, then the original assessment of all property of the assessee at the location…for that year shall be subject to review, equalization, and adjustment.”^[xiv]  Further, a taxpayer may challenge whether or not a change in ownership occurred at any time on a regular roll assessment, and can also challenge a base year value determination during the four succeeding regular roll appeal periods.  However, the challenge, if successful, will not have retroactive effect. (Harmony Gold U.S.A., Inc. v. County of Los Angeles (2019) 31 Cal.App.5th 820.)
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Gregory R. Broege is a partner at Ajalat, Polley, Ayoob, Matarese & Broege where he specializes in California State & Local Tax matters, including property tax, sales/use tax, city
business tax, and documentary transfer tax. 

Michael P. Kelly is an associate at Ajalat, Polley, Ayoob, Matarese & Broege and specializes in property tax, sales and use tax, city business tax, and documentary transfer tax matters.