There is an important date that will allow property owners to file an application that may allow their property tax to be reduced due to a decrease in the value of the same property.
The date is July 2nd and it is for filing a diminution in value review. For those who do not know what an impairment review involves, the following information should be helpful. Additionally, the 2022 depreciation filing period is from July 2, 2022 to November 30, 2022. Applications will be available from July 2, 2022. For more information, visit: www.assessor.lacounty.gov/div
California’s Proposition 13 established the base year value for property tax assessment. It also limits growth in assessed property value to no more than two percent per year unless the property’s market value falls below the base year value.
In 1978, California voters passed Proposition 8, a constitutional amendment that allowed for a temporary reduction in assessed value when a property suffered a “decline in value.” A decline in value occurs when the current market value of a property is less than the current appraisal as of January 1st.
The assessor’s office mailed over 59,000 impairment review notices to property owners with existing abatements in 2021. In addition, over 1,400 impairment review notices were mailed to commercial property owners. These commercial properties possibly affected by the COVID-19 pandemic were proactively reviewed by the assessor for possible reductions in assessed value for 2021.
You must file an Application for Review of Impairment Form (RP-87) with the assessor between July 2 and November 30 for the fiscal year beginning July 1. Applications are valid if postmarked by November 30. If November 30 falls on a Saturday, Sunday or legal holiday, the application is valid if submitted or postmarked by the next business day.
You must prove that on January 1, the market value of your property was lower than its current assessment.
On your claim form, provide the appraiser with information that supports your opinion that the market value of your property is less than the appraised value. The best supporting documentation is sales information for comparable properties. You must select two comparable sales that were sold as close to January 1st as possible, but no later than March 31st.
You can check your neighborhood’s sales appraiser’s database by visiting the Property Appraisal Information System. Although submitting comparable sales is helpful to the appraiser in determining the market value of your property, applications submitted without comparable sales will be accepted and processed.
If the January 1 market value is less than the trend base value, your assessed value will be reduced to the market value for the fiscal year beginning July 1. The adjusted value will be reflected in your annual tax bill.
If the current market value is higher than the trend base value, no change will be made to the assessed value. Property owners are encouraged to review the assessor’s website, assessor.lacounty.gov/divfor more information on depreciation and how property values are assessed.
Los Angeles County Assessor Jeff Prang has been in office since 2014 and has implemented sweeping reforms to ensure the strictest ethics guidelines are based on fairness, accuracy and integrity. His office, the largest of its kind in the nation with 1,200 employees, provides the foundation for a property tax system that generates $17 billion annually.
Property Value Decrease is Reviewable – Los Angeles Sentinel | Los Angeles Sentinel Source link Property Value Decrease is Reviewable – Los Angeles Sentinel | Los Angeles Sentinel