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Overview

California property tax assessments can be challenged when the Assessor has overvalued your property. Under Proposition 13 and the Revenue & Taxation Code, property owners have the right to appeal assessments that exceed fair market value or violate the 2% annual increase limit.

Key Protection: Under Proposition 13 (California Constitution Article XIIIA), property cannot be reassessed above 2% per year unless there is a change in ownership or new construction. The base year value is the 1975-76 value or the value at the date of acquisition.

Common grounds for property tax assessment appeals include:

  • Overvaluation - assessed value exceeds fair market value
  • Decline in value (Prop 8) - market value dropped below assessed value
  • Improper reassessment - unauthorized change of ownership determination
  • Incorrect base year value - wrong acquisition price used
  • Factual errors - wrong square footage, lot size, or property characteristics
  • Exemption denial - homeowner's, disabled veteran's, or other exemptions
  • Parent-child/grandparent-grandchild exclusion denial
Critical Deadline: You must file an Assessment Appeal Application within 60 days of the date of mailing of the assessment notice (typically by November 30 for regular roll or within 60 days for supplemental assessments).
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Legal Basis

California property tax appeals are governed by the following laws:

Proposition 13 (Article XIIIA, California Constitution) ▾

Prop 13 is the cornerstone of California property tax law:

  • 1% Tax Rate: Property taxes cannot exceed 1% of full cash value (plus voter-approved bonds)
  • 2% Cap: Assessed value cannot increase more than 2% annually
  • Base Year Value: Value established at acquisition or 1975-76, whichever is later
  • Reassessment Triggers: Only change of ownership or new construction triggers reassessment
Proposition 8 - Decline in Value ▾

Revenue & Taxation Code Section 51(a)(2) allows temporary reductions:

  • Market Decline: When market value falls below factored base year value
  • Annual Review: Assessor should automatically review and reduce
  • Temporary Reduction: Value returns to factored base when market recovers
  • Right to Apply: Property owner can request formal decline-in-value review
Revenue & Taxation Code Sections 1601-1611.7 ▾

These sections govern the Assessment Appeals Board process:

  • Section 1603: 60-day filing period for appeals
  • Section 1604: Burden of proof on assessor for escape assessments
  • Section 1609: Board must find the full cash value as of lien date
  • Section 1609.4: Applicant generally bears burden of proof
R&T Code Section 110 - Full Cash Value ▾

Defines how property value must be determined:

  • Market Value: Price property would bring on open market
  • Willing Buyer/Seller: Neither under compulsion to act
  • Reasonable Knowledge: Both parties reasonably informed
  • Sales Comparison: Recent comparable sales are primary evidence
Proposition 19 and Parent-Child Exclusions ▾

Changes to intergenerational transfers effective February 2021:

  • Primary Residence: Must be used as family home within 1 year
  • Value Limit: Exclusion limited to $1 million above base year value
  • No Commercial Property: Investment properties no longer excluded
  • Prior Law: Transfers before Feb 16, 2021 may use old rules
Important: Under R&T Code Section 167, the lien date for property taxes is January 1 of each year. Your appeal challenges the value as of that date, regardless of when you file.
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Evidence Checklist

Gather this evidence to support your property tax assessment appeal:

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Assessment Notice

Annual property tax bill and any supplemental assessment notices

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Comparable Sales Data

Recent sales of similar properties in your area (within 1 year of lien date)

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Professional Appraisal

MAI or SRA certified appraisal as of the lien date (January 1)

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Property Condition Documentation

Photos showing deferred maintenance, damage, or functional obsolescence

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Purchase Documents

Grant deed, closing statement, and purchase contract showing acquisition value

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MLS Listings

Days on market data, expired listings, and price reductions in your area

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Income and Expense Data (Income Property)

Rent rolls, operating statements, and vacancy rates for commercial appeals

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Property Record Card

Assessor's property record showing size, characteristics, and assessment methodology

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Calculate Potential Tax Savings

Calculate your potential property tax savings from a successful appeal:

Current Assessed Value $850,000
Estimated Fair Market Value $700,000
Reduction in Assessed Value $150,000
Tax Rate (approx. 1.25%) x 0.0125
Annual Tax Savings $1,875
Decline-in-Value (Prop 8) Savings ▾

If market value has dropped below your factored base year value:

  • Calculate your current factored base year value (original value + 2% per year)
  • Determine current market value from comparable sales
  • The difference equals your potential assessment reduction
  • Note: This is temporary - value will return when market recovers
Overassessment Savings ▾

If you believe the base year value was set incorrectly:

  • Compare purchase price to assessed value
  • Review for data entry errors or wrong property characteristics
  • Check if improper reassessment occurred (no actual change in ownership)
  • Correction affects all future years
Refund Potential ▾

If your appeal is successful:

  • Refund of overpaid taxes for the appeal year
  • Possible refund for prior years if claim filed within 4 years (R&T 5097)
  • Reduced taxes going forward until market value exceeds base year
  • Interest on refunds typically at county pool rate
Warning: The Assessment Appeals Board can raise your assessment if evidence shows your property is undervalued. Only file if you have strong evidence supporting a lower value.
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Sample Language

Use this template language for your property tax assessment appeal:

Informal Request for Review
[Your Name] [Your Address] [Date] [County Name] Assessor's Office Attn: Informal Review Section [Address] Re: Request for Informal Review of Assessment APN: [Assessor's Parcel Number] Property Address: [Property Address] Assessment Year: [Year] Dear Assessor: I am writing to request an informal review of the assessed value of my property pursuant to Revenue & Taxation Code Section 51. The current assessed value of $[Amount] exceeds the fair market value as of January 1, [Year]. PROPERTY INFORMATION Parcel Number: [APN] Address: [Property Address] Current Assessed Value: $[Amount] Requested Value: $[Amount] GROUNDS FOR REDUCTION 1. Decline in Value (Proposition 8): The current market value of my property has declined below the factored base year value. Comparable sales in my immediate area support a value of $[Amount], which is $[Amount] less than the current assessment. 2. Comparable Sales Evidence: [Address 1] - Sold [Date] for $[Amount] - [sqft], [beds/baths] [Address 2] - Sold [Date] for $[Amount] - [sqft], [beds/baths] [Address 3] - Sold [Date] for $[Amount] - [sqft], [beds/baths] 3. Property Condition Issues: [Describe any physical issues affecting value: deferred maintenance, needed repairs, functional obsolescence] I am attaching supporting documentation including comparable sales data and photographs. Please review the assessment and adjust accordingly. If you are unable to grant this informal request, I intend to file a formal appeal with the Assessment Appeals Board. Sincerely, [Your Signature] [Your Name] [Phone Number] [Email] Enclosures: [List attachments]
Assessment Appeals Board Application - Value Statement
APPLICANT'S VALUE STATEMENT APN: [Assessor's Parcel Number] Property Address: [Address] Lien Date: January 1, [Year] CURRENT ASSESSMENT Land: $[Amount] Improvements: $[Amount] Total: $[Amount] APPLICANT'S OPINION OF VALUE Land: $[Amount] Improvements: $[Amount] Total: $[Amount] BASIS FOR REQUESTED VALUE I. Sales Comparison Approach The following comparable sales occurred within 12 months of the lien date and support my opinion of value: Comparable 1: Address: [Address] Sale Date: [Date] Sale Price: $[Amount] Living Area: [sqft] Price/SF: $[Amount] Adjustments: [+/- for differences in location, size, condition, etc.] Adjusted Value: $[Amount] Comparable 2: Address: [Address] Sale Date: [Date] Sale Price: $[Amount] Living Area: [sqft] Price/SF: $[Amount] Adjustments: [+/- for differences] Adjusted Value: $[Amount] Comparable 3: Address: [Address] Sale Date: [Date] Sale Price: $[Amount] Living Area: [sqft] Price/SF: $[Amount] Adjustments: [+/- for differences] Adjusted Value: $[Amount] RECONCILIATION Based on the comparable sales analysis, the fair market value of the subject property as of January 1, [Year] is $[Amount]. II. Property Condition Factors The following conditions negatively impact value: - [Describe condition issues] - [Describe deferred maintenance] - [Describe functional obsolescence] III. Conclusion The Assessor's current value of $[Amount] exceeds the fair market value by $[Amount]. I respectfully request the Board reduce the assessment to $[Amount]. Respectfully submitted, [Your Name] [Date]
Exemption Denial Appeal
[Your Name] [Your Address] [Date] [County] Assessment Appeals Board [Address] Re: Appeal of Exemption Denial APN: [Assessor's Parcel Number] Property Address: [Address] Exemption Type: [Homeowner's/Disabled Veteran's/Other] Dear Assessment Appeals Board: I hereby appeal the denial of my [type] exemption for the above-referenced property pursuant to Revenue & Taxation Code Section [applicable section]. FACTS 1. I acquired the property on [date]. 2. I filed a timely claim for [exemption type] on [date]. 3. The Assessor denied my claim on [date] stating: [reason for denial]. GROUNDS FOR APPEAL The denial was improper because: [For Homeowner's Exemption:] - I occupy the property as my principal residence - I do not claim a homeowner's exemption on any other property - I have attached proof of occupancy including: [utility bills, driver's license, voter registration] [For Disabled Veteran's Exemption:] - I am a veteran with a service-connected disability rating of [X]% - My disability rating letter from the VA is attached - My household income is below the statutory limit [For Parent-Child Exclusion:] - The transfer occurred on [date], prior to the Prop 19 effective date of February 16, 2021 - [Transferor] is my [parent/grandparent] as shown by the attached birth certificate - The property qualifies as a principal residence under R&T 63.1 REQUESTED RELIEF I request the Board: 1. Find that I qualify for the [exemption type] 2. Order the Assessor to apply the exemption for [tax year(s)] 3. Order a refund of any excess taxes paid with interest Respectfully submitted, [Your Name] Attachments: - Denial Letter - [Supporting documents]
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Next Steps

After deciding to appeal your property tax assessment, follow these steps:

1. Request Informal Review First ▾

Before filing a formal appeal, contact the Assessor's office:

  • Call the Assessor's customer service line
  • Request an informal review of your assessment
  • Submit comparable sales data and condition evidence
  • Many counties resolve issues without formal hearing

Note: Informal review does not extend your appeal deadline!

2. File Assessment Appeal Application ▾

File within the deadline (typically July 2 - November 30 for regular roll):

  • Obtain form from County Clerk or Assessment Appeals Board
  • Complete all sections including your opinion of value
  • File in person, by mail, or online (many counties)
  • Pay any required filing fee (some counties)
  • Keep copy with date stamp as proof of filing
3. Prepare for Hearing ▾

Gather and organize your evidence:

  • Order a professional appraisal if value justifies cost
  • Compile comparable sales within 1 year of lien date
  • Document property condition issues with photos
  • Prepare written value statement with analysis
  • Request Assessor's property record card
4. Attend the Hearing ▾

Present your case to the Assessment Appeals Board:

  • Arrive early with all documents organized
  • Present comparable sales and explain adjustments
  • Be prepared to answer questions from the Board
  • The Assessor will present their evidence
  • Board will issue written decision (usually within 60-90 days)
5. Appeal to Superior Court (If Necessary) ▾

If the Board rules against you:

  • Deadline: 6 months from Board's written decision
  • Standard: Court reviews for substantial evidence
  • Pay Taxes: Must pay current taxes to preserve appeal rights
  • Consider Cost: Attorney fees may exceed potential savings
Pro Tip: Many property owners successfully reduce assessments without an attorney. The Assessment Appeals Board process is designed to be accessible to property owners representing themselves.

Need Help With Your Tax Assessment Appeal?

Complex appeals involving commercial property or significant values may benefit from professional assistance.

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