Office vacancies have caused the values of Bay Area commercial real property to significantly decline in 2022. The value of real property that is used to determine the property tax assessment for the 2023-2024 fiscal year (which runs from July 1, 2023 to June 30, 2024) is determined as of the January 1, 2023 valuation date.
Depending on the extent to which the value of your property has declined, it is likely that the assessed value of your property, as of January 1, 2023, is considerably lower than the value currently listed on the assessment roll. If a property owner requests a reduction, the Assessor has the authority to proactively change the assessed value of a property to recognize a decrease in value (a one-time Proposition 8 reduction). In addition, if a property owner disputes the assessed value, the owner can file an Appeal with the Assessment Appeals Board and receive an Administrative Hearing. The deadline for filing an Appeal in most counties is September 15, although a few are November 30.
Our tax partner, Jeff Bernstein, has extensive experience in property tax assessment matters, and has attained significant reductions in property tax valuations for many owners of commercial and multi-family residential properties. If a reduced valuation can be achieved, the property tax savings could be substantial.
Please contact Jeff directly (jbernstein@coblentzlaw.com) if you are interested in discussing your potential for a reduced property tax valuation.