By: Ara Oghoorian, CFA, CFP, CPA
Updated: November 14, 2023

Do you feel that your property taxes are higher than they should be? Real estate values are starting to decline because interest rates have risen so sharply and if you recently bought your property, you may be overpaying in property taxes.  If so, you can appeal your property taxes to have them possibly reduced. The appeal process is not difficult, but requires diligence and multiple steps to be taken.

Before we begin, it’s essential to distinguish between two types of property taxes: secured and unsecured.

Secured vs Unsecured Property

Secured property, which includes real estate like homes and raw land, cannot be easily moved. Unsecured property, on the other hand, encompasses items such as business assets, boats, and aircraft. This discussion primarily focuses on secured property taxes, given their significance and annual payment frequency.

We will review how your property taxes are assessed, what you can do to appeal your property tax assessed value, what forms you need to file, and the deadlines. 

How Your Property Taxes are Assessed

Property (real estate) taxes are based on your property’s assessed value. Your property’s assessed value is based on your initial purchase price of your property; this is also known as the base year value. Increases in the assessed value are limited under Proposition 13 (passed in 1978). Under Proposition 13, a property’s assessed value cannot increase by more than 2 percent from one year to the next except in the event of a change in ownership, new construction, the property receives a temporary decline in assessed value (Proposition 8), or if there is a reassessment because of fire damage or other misfortune and calamity. 

Property tax bills are mailed out annually by November 1st. The taxes are due in two installments. The first installment is due by December 10th and the second installment is due by April 10th. It is your responsibility to pay the property tax even if you do not receive a bill. If you do not receive the bill in the mail, contact LA County to request a duplicate bill. 

You may have received a supplemental property tax bill if you recently purchased your home. The supplemental tax bill is based on the difference between the prior assessed value (before you purchased the property) and the new assessed value (after you purchased the property). The new assessed value is equal to the purchase price. Supplemental tax bills are mailed out approximately 6 months after you purchase the property and are not paid through escrow. Escrow is when you have your property taxes and insurance paid through your mortgage. 

Homeowners’ Exemption

If you own and occupy your home as a primary residence, you are eligible for the homeowners exemption that gives a $70 reduction in your property taxes each year. Of course $70 is a nominal amount, but every little bit helps. Do not confuse the homeowners’ exemption with the homestead exemption. The homeowners exemption reduces your property taxes; the homestead exemption protects part of your home’s equity from creditors. The homestead exemption has no impact on the calculation of your property taxes.  

How you can appeal your property tax if you feel that it’s too much 

If you think your property taxes are too high because of changes in market conditions or other factors, you can contest your assessed value by either an informal review or a formal assessment appeal. 

An informal review is done through submitting a Decline-in-Value (DIV) Review application, also known as form RP-87. The DIV must be submitted between July 2nd and November 30th. It is important to note that a DIV is a temporary 1 year decline in value assessment. 

A formal assessment appeal is done by filing an application with the Assessment Appeals Board using form AAB100. It is highly recommended to also file a formal appeal if you plan to file an informal review to dispute the assessed value with the assessor’s office to preserve your right to a timely appeal.

What Form(s) and Information Will You Need

Form RP-87 

Form RP-87 is used to file an informal review, also known as a Decline-in-Value application. 

To complete the application, you must provide the following information on the form: your full name, mailing address, phone number, Assessor’s ID, email address, and your opinion of value as of January 1st. 

You must provide the County with information that supports your opinion that the market value of your property is less than the assessed value. The best supporting documentation is information on sales of comparable properties. You should select two comparable sales that sold as close to January 1 as possible, but no later than March 31. If you need assistance finding comparable sales in your local area, you can use the LA County Property Assessment Information System website.    

Form RP-87 Decline-in-Value form can be completed either online or by mail. Once submitted, you can check the status of application online. A reminder that if a Decline-in-Value is granted, it is not permanent and only lasts 1 year.

If you disagree with the Assessor’s decline-in-Value conclusion, you may file an appeal with the Assessment Appeals Board either online, in person, or by mail using form AAB100.

Form AAB100

Form AAB100 is used to file a formal appeal with the Assessment Appeals Board. LA County suggests that you “preserve your appeal rights” by submitting form AAB100 simultaneously with your Decline-in-Value application (Form RP-87). You can withdraw your AAB appeal without penalty for any reason. The Assessment Appeals Board is not part of LA County and is an independent third party under the Board of Supervisors of Los Angeles County.

To complete the application, you must provide the following information on the form: 

• Contact information: your full name, mailing address, phone number, email address, 
• Contact information for representative: this is optional and only applies if you have a paid representative filing the application for you.
• Property information: Note if the property is your primary residence; APN: Assessor’s Parcel Number as shown on your tax bill; and property type (i.e. single family home/condo, multi-family, commercial, etc.)
• Value: property value per the assessor and your proposed value. You do not need to attach evidence of your valuation on the application
• Type of assessment: regular or supplemental. There are other types of assessments, but the regular and supplemental are the most common. 
• Reason for Filing Appeal: the most common reason is a Decline-in-Value. However, if any of the other reasons apply, then select the most appropriate reason.
• Hearing Officer Program: depending on the value and type of property, you have the option to present your case to an Assessment Appeal Board or an Assessment Appeals Hearing Officer. 

The cost to file an appeal

Effective 2021, the cost to file an appeal is $46, is non-refundable, and due at the time of filing. If you file online, there is also a third party processing fee. There is a fee waiver if the fee would cause you undue hardship (waiver form)

Assessment Appeals Board vs. Assessment Appeals Hearing Officer

When completing form AAB100, you have the option to present your case to an Assessment Appeals Board or an Assessment Appeals Hearing Officer. 

The Assessment Appeals Board (aka AAB) is a 3 member panel that was created to hear and settle property tax disputes between taxpayers and the County Assessor’s Office. The hearing can be conducted either virtually or in person in Downtown Los Angeles.

The Assessment Appeals Hearing Officer program is an expedited and less formal process than the Assessment Appeals Board (AAB). All Hearing Officer hearings are conducted online. You still have to go through the same process of presenting your evidence, but it’s to an impartial Assessment Hearing Officer versus the 3 member panel of the AAB. 

Properties that qualify under the Hearing Officer Program include:

• Single Family homes
• Condominiums
• Cooperatives
• Multifamily properties of 4 units or less
• Any property valued at $3 million or less 

Per the County, “if your property is a single-family dwelling, condominium, cooperative or multi-family dwelling of four units or less, regardless of value, or a property that does not exceed $5,000,000 assessed value, you may request that your hearing be conducted by an Assessment Hearing Officer, instead of a formal Assessment Appeals Board.”

What are the deadlines?

The deadline to file form RP-87 – Decline-in-Value application is between July 3rd and November 30th. 

The deadline to file form AAB100 – Assessment Appeal Application depends on the type of assessment you are appealing. 

• Regular Assessments on personal and real property: Filing dates are July 2 to November 30th of each year.
• Supplemental assessments: filing dates are within 60 days from the date of the Supplemental notice or the postmark date of the notice, whichever is later. 
• Roll Change/Adjustment and Escape Assessment: filing dates are within 60 days from the date of the notice or the postmark date of the notice, whichever is later.
• Misfortune Calamity Reasessement: filing dates are within 6 months after the date of the notice.

How long does it take?

Once your application has been processed, you will get notified by email and regular mail. According to the LA County website, “The appeals board has two years from the date an application is filed to hear and render a decision.”

Can you appeal an appeal?

The appeals board can either increase, decrease or not change an assessment. Once decided, the decision of the board is final and the appeals board may not reconsider or rehear any application. However, either the applicant or the assessor may take the case to superior court to review an adverse decision.

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