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 The information contained in the ASK MIKE column is provided for general information purposes only and is not intended to be a legal opinion nor legal advice nor is it intended to be a complete discussion of all issued related to the law. No attorney client relationship shall be deemed to arise hereunder. Every individual's factual situation is different and you should seek independent legal advice regarding specific situations. All information contained within pertains only to California law unless otherwise noted. Property Taxes Question 1 Question 2 We are in a position that a Joint Tenancy needs to be reversed back to the original owner. I need to know what the process is to accomplish this without being reassessed for taxes. Can you please shed some light on how we do this with the county to change the title? Answer: I don’t know the particulars of your situation, but if this was a case where the owner had deeded the property to himself (or herself) and another person in joint tenancy, deeding it back to the original owner should not trigger a reassessment for tax purposes. Under Rev. & Tax Code Section 65(b), the creation or transfer of a joint tenancy interest is not considered a “change of ownership” for reassessment purposes if, after the transfer, the original owner is one of the joint tenants. Similarly, Rev. & Tax Code Section 65(c) states that if such a joint tenancy is then terminated, the termination will not be considered a “change of ownership” so long as the property revests, in whole or in part, in the original owner. Unfortunately, if the original owner is not one of the current joint tenants, transferring the property back to him would probably trigger a reassessment. However, the Revenue and Tax Code contains a number of other exceptions to the reassessment rule. To determine if your transaction would qualify for one of these exceptions, consult your attorney.
Question: I just got my latest property tax assessment notice and my home has been re-assessed. Its new value is higher than that of other houses in my neighborhood, which have sold recently. What can I do? I want to bring my tax bill down. Answer: In order to have your property tax assessment reconsidered, you must file a written Application for Reduction of Assessment with your county’s Assessment Appeals Board. This application must include a statement of the facts on which you base your request, along with your opinion of the property’s full cash value. In order to be considered, your application typically must be filed no later than the 15h of September in the year the disputed assessment notice was received. The appeals board usually provides application forms, which simplify this process. Once you file your appeal, you will usually be granted a hearing. Generally, you are entitled to a hearing if the total assessed value of the property is $100,000 or less, if it is a single-family home, condominium or cooperative, or if it is a multi-family residential property no larger than four units. At the hearing, you will be allowed to present evidence of comparable sales in the area. The hearing usually is somewhat informal, although the Assessment Appeals Board must render a decision based on legal evidence. Be aware that the board has the power to increase your assessment as well as lower it. However, if the Assessor’s office intends to present evidence supporting a higher valuation, it must inform you of the proposed valuation and provide you with the supporting evidence at least ten days prior to the hearing. Please note that under Proposition 13 – passed by the voters in 1978 – a property is ordinarily reassessed each time it is sold. It is therefore possible that comparable houses in your neighborhood could have lower valuations simply because they were purchased before you bought your home. However, if your assessment is substantially higher than that of other houses that were purchased at around the same time, an application for reduction might be worthwhile.
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