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Owners may appeal property tax assessments

On Behalf of | Mar 3, 2022 | Real Estate Litigation

Small business owners sometimes feel the proverbial pinch of operating expenses. If costs increase and revenue drops, profits suffer. So, a California small business owner may seek to cut expenses where viable. Some may wonder if appealing a property tax assessment is worth the effort. A valid challenge might be helpful if it results in lowered tax obligations.

Challenging a property tax assessment

When a property owner keeps the same property from year to year, the increase comes from a set formula written into California law. However, the sale of the property could lead to a new assessment, and the new owner may pay far more than the previous one. Even owners who kept the same home without selling might face an increased assessment if significant improvements occurred.

Those looking at a higher tax assessment might wonder if filing an appeal is worth the trouble. Ultimately, doing so could save the owner a significant amount of money. A successful appeal would impact the current assessment and tax debt, along with future tax obligations. After all, leaving an increased assessment in place means higher tax bills in the coming years.

Working at property tax assessment appeal

A homeowner may remodel a home and discover the county assessor’s office increased the property taxes. Disagreements over the assessment may lead the property owner to file a formal appeal. The appeal steps commence with filling and submitting the necessary paperwork under state law. As with any actions related to real estate litigation, property and business owners should expect to present compelling evidence for their challenge.

An appeals board reviews the evidence during a hearing. The appeals board may rule in the small business owner’s favor. If not, then the owner could file a lawsuit in Superior Court.