Decline in Value and the Assessment Appeal Deadline
A single-family home in Sacramento County was purchased in 2018 for $650,000. The county assessor enrolled a base-year value of $650,000. In 2023, the owner receives a notice that the assessed value for the 2023-24 fiscal year is $710,000 (factoring in the annual 2% inflation adjustment). However, the owner believes the market value as of January 1, 2023, is only $600,000 due to a local economic downturn. The owner files a decline-in-value application with the assessor on August 15, 2023. The assessor does not respond within 30 days. On October 1, 2023, the owner receives a notice that the assessor has reduced the value to $650,000 for the 2023-24 year. The owner disagrees, believing the value should be $600,000. The owner wants to appeal but is unsure of the deadline and the correct process. The owner also mentions that the property next door, which is identical, was assessed at $580,000 for the same year.
1. What is the deadline for filing an assessment appeal for the 2023-24 fiscal year, and does the owner's August 15 filing with the assessor affect that deadline?
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Under California law, an assessment appeal for a regular assessment must be filed with the county assessment appeals board between July 2 and September 15 of the fiscal year. For the 2023-24 year, the deadline is September 15, 2023. The owner's August 15 filing of a decline-in-value application with the assessor is not an appeal to the appeals board; it is a request for informal review. Therefore, it does not extend the appeal deadline. The owner must file a formal appeal with the appeals board by September 15, 2023, to preserve the right to challenge the 2023-24 assessment. Since the owner received the assessor's notice on October 1, after the deadline, the owner cannot rely on that notice to extend the deadline. However, if the assessor's notice was a supplemental assessment or a roll change, different rules may apply, but here it is a regular assessment. The owner should file immediately if the deadline has not passed; if it has, the owner may request a late filing only under limited circumstances (e.g., disability, reasonable cause), but those are strictly construed. Thus, the owner likely missed the deadline for 2023-24 and should focus on the 2024-25 year, for which a new appeal period will open.
2. If the owner appeals and presents evidence that the next-door property was assessed at $580,000, is that sufficient to prove the subject property's value is $600,000? Explain.
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No, evidence of a single comparable sale or assessment is not sufficient by itself to prove the subject property's value. The appeals board requires competent evidence of market value, such as recent sales of comparable properties, adjusted for differences. The next-door property's assessment may be relevant as a comparable, but the owner must show that the properties are truly similar and that the assessment reflects market value. The assessor's value is presumed correct, and the taxpayer bears the burden of proving otherwise by a preponderance of the evidence. The owner should provide multiple comparables, an appraisal, or other evidence. Additionally, the assessor's assessment of the neighboring property might be under appeal or based on different facts. Therefore, the owner should gather comprehensive evidence, including sales data, listings, and income approach if applicable, to support the $600,000 value. The board may also consider the assessor's methodology. Simply pointing to a lower assessment next door is a starting point but not conclusive.