ASSESSMENT APPEALS MANUAL
MAY 2003
CALIFORNIA STATE BOARD OF EQUALIZATION
CAROLE MIGDEN, SAN FRANCISCO FIRST DISTRICT
BILL LEONARD, ONTARIO SECOND DISTRICT
CLAUDE PARRISH, LONG BEACH THIRD DISTRICT
JOHN CHIANG, LOS ANGELES FOURTH DISTRICT
STEVE WESTLY, SACRAMENTO STATE CONTROLLER
TIMOTHY W. BOYER, INTERIM EXECUTIVE DIRECTOR
Assessment Appeals Manual i May 2003
FOREWORD
In the administration of the property tax in California, achieving equity in the equalization
process requires two elements. First, the taxpayer and the appeals board should have as much
relevant information as possible about the value of the property and about the assessment placed
on that property by the assessor. Second, all parties must receive an adequate, impartial hearing
of any appeal regarding that property.
For purposes of local property taxation, equalization means adjustments in the values of
properties listed on the assessment roll to conform to their values within the parameters of
property tax laws.
By the Revenue Act of 1857, the California Legislature designated each county board of
supervisors to serve as the county board of equalization. The California State Constitution,
adopted in 1879, included specific provisions for county boards of supervisors to sit as the local
boards of equalization. In 1880, the California Supreme Court interpreted the constitutional
language by affirming that it " empowered a county board of equalization to increase or lower an
individual assessment on the county roll,…" 1
The current language, set forth in section 16 of article XIII of the Constitution, provides in part:
The county board of supervisors, or one or more assessment appeals boards
created by the county board of supervisors, shall constitute the county board of
equalization for a county….
Thus, in all counties in California either one or more assessment appeals boards or a county
board of supervisors perform the duties of a local board of equalization as mandated by
article XIII, section 16, of the Constitution. To discharge these duties, most counties have
adopted rules of notice and procedure relevant to appeals hearings under their jurisdiction. The
divergence of the local rules and practices adopted by the various counties has created confusion
for taxpayers who have property in more than one county. Additionally, the need for uniform
guidance in the appeals arena became more pronounced during the 1990' s as the number of
applications for assessment reduction dramatically rose.
This manual is provided by the State Board of Equalization as an informational resource for
members of local boards of equalization and assessment appeals boards throughout the state, and
is intended to advance standardization of assessment appeals practices within California.
Section 15606, subdivision ( c), of the Government Code directs the State Board of Equalization
to prescribe rules and regulations governing local boards of equalization in the performance of
their duties, and subdivision ( f) provides that the Board will issue instructions, such as those set
forth in this manual. While regulations adopted by the State Board of Equalization are binding
1 Wells Fargo & Co. v. State Board of Equalization ( 1880) 56 Cal. 194.
Assessment Appeals Manual ii May 2003
as law, Board- adopted manuals are advisory only. Nevertheless, courts have held that they may
be properly considered as evidence in the adjudicatory process. 2
The citations and law references in this publication were current as of the writing of the manual.
Board staff met with members of the California Assessors' Association, California Association of
Clerks and Election Officials, county counsels, and industry representatives to solicit input for
this manual. The Board originally approved this manual in September 1998, adopted updates to
the manual in September 2000, and approved this version of the manual on May 28, 2003.
David J. Gau
Deputy Director
Property and Special Taxes Department
May 2003
2 Coca- Cola Co. v. State Board of Equalization ( 1945) 25 Cal. 2d 918; Prudential Ins. Co. v. City and County of San
Francisco ( 1987) 191 Cal. App. 3d 1142; Hunt- Wesson Foods, Inc. v. County of Alameda ( 1974) 41 Cal. App. 3d 163.
Assessment Appeals Manual iii May 2003
Table of Contents
CHAPTER 1: FUNCTION AND PURPOSE OF APPEALS BOARDS.................................. 1
ROLE OF APPEALS BOARDS........................................................................................................... 1
COMPOSITION OF APPEALS BOARDS ............................................................................................. 3
Boards of Supervisors Sitting as Local Boards of Equalization ............................................. 3
Term of Office for Local Boards of Equalization.................................................................... 4
Assessment Appeals Boards..................................................................................................... 4
Eligibility Requirements for Assessment Appeals Board Members......................................... 5
Term of Office for Assessment Appeals Boards....................................................................... 7
Training of Members ............................................................................................................... 7
Selection of Board Chair ......................................................................................................... 8
MULTI- COUNTY APPEALS BOARD................................................................................................ 9
HEARING OFFICERS....................................................................................................................... 9
Eligibility Requirements for Hearing Officers ...................................................................... 11
INTERACTION WITH OTHER OFFICIALS/ DEPARTMENTS .............................................................. 11
County Board of Supervisors................................................................................................. 11
County Legal Advisor ............................................................................................................ 12
Clerk of the Board ................................................................................................................. 13
County Assessor..................................................................................................................... 14
County Auditor....................................................................................................................... 15
County Tax Collector............................................................................................................. 15
State Board of Equalization................................................................................................... 15
State Attorney General .......................................................................................................... 17
CHAPTER 2: LEGAL FRAMEWORK................................................................................... 18
LAWS THAT GOVERN THE ASSESSMENT APPEALS PROCESS........................................................ 18
Preemption of Laws ............................................................................................................... 18
Regulation May Not Exceed Statutory Authority .................................................................. 18
Assessment Appeals Procedures May Not Violate Basic Constitutional Guarantees of Due
Process........................................................................................................................ .......... 18
United States Constitution..................................................................................................... 18
California Constitution.......................................................................................................... 19
Revenue and Taxation Code and Other Codes...................................................................... 19
Property Tax Rules ................................................................................................................ 19
Local Rules ............................................................................................................................ 19
CASE LAW ............................................................................................................................... .. 20
Litigation of Assessment Appeals Cases................................................................................ 20
Appellate Court Decisions..................................................................................................... 20
CHAPTER 3: APPLICATION PROCESS.............................................................................. 21
APPLICATION FORM.................................................................................................................... 21
FILING THE APPLICATION FORM................................................................................................. 21
Required Information ............................................................................................................ 21
Applicant's Certification........................................................................................................ 22
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Signature...................................................................................................................... ......... 23
WHO MAY FILE AN ASSESSMENT APPEAL APPLICATION............................................................ 23
Application by Person Affected ............................................................................................. 24
Application by Agent.............................................................................................................. 24
Application by a Relative....................................................................................................... 25
Application by a Business Entity ........................................................................................... 25
Application by an Attorney.................................................................................................... 26
ASSESSMENT APPEALS FILING PERIODS...................................................................................... 26
Regular Filing Period............................................................................................................ 26
Filing Period for Supplemental and Escape Assessments and Roll Corrections.................. 28
Extension for Supplemental Assessments .............................................................................. 29
Decline in Value Filing Period.............................................................................................. 29
Base Year Value Filing Period.............................................................................................. 29
Calamity Reassessment Filing Period................................................................................... 31
PROOF OF FILING DATE............................................................................................................... 33
APPLICATION TIMELY FILED IN WRONG COUNTY....................................................................... 34
AMENDING AND CORRECTING ASSESSMENT APPEAL APPLICATIONS.......................................... 34
WITHDRAWAL OF AN APPLICATION............................................................................................ 35
RETENTION OF RECORDS ............................................................................................................ 35
CHAPTER 4: BEFORE THE HEARING................................................................................ 36
SCHEDULING HEARINGS ............................................................................................................. 36
MULTIPLE ISSUES........................................................................................................................ 37
COPY OF APPLICATION, AMENDMENT, AND CORRECTION TO ASSESSOR.................................... 38
PRE- HEARING CONFERENCES ..................................................................................................... 38
OBTAINING INFORMATION FOR THE HEARING............................................................................. 39
Section 408, Inspection of Assessor's Records ...................................................................... 39
Section 441, Information from Taxpayer's Records .............................................................. 39
Sections 469 and 470, Audits of Taxpayer's Records ............................................................ 40
Section 1606, Exchange of Information ................................................................................ 40
Rule 322, Subpoenas.............................................................................................................. 40
NOTICE OF HEARING................................................................................................................... 41
Notice Required for a Hearing on an Application ................................................................ 41
Notice Required for a Hearing by a Board on Its Own Motion ............................................ 41
ASSESSOR'S REQUEST FOR A HIGHER VALUE.............................................................................. 42
EXCHANGE OF INFORMATION ..................................................................................................... 42
Request for an Exchange of Information............................................................................... 42
Comparable Sales Data......................................................................................................... 43
Income Data........................................................................................................................... 43
Cost Data........................................................................................................................... ... 43
Transmittal of Data to Other Party ....................................................................................... 44
Introduction of New Material................................................................................................ 44
REQUEST FOR FINDINGS OF FACT................................................................................................ 45
DISQUALIFICATION OF A BOARD MEMBER.................................................................................. 45
Board Members Representing Applicants ............................................................................. 46
Application Filed by Board Member..................................................................................... 46
DISQUALIFICATION OF A HEARING OFFICER ............................................................................... 46
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Hearing Officer Representing Applicants ............................................................................. 47
Application Filed by Hearing Officer.................................................................................... 47
EMPLOYEES OF THE CLERK OF THE BOARD REPRESENTING APPLICANTS ................................... 47
Applications Filed by Employees of the Clerk of the Board.................................................. 47
CHAPTER 5: JURISDICTION OF APPEALS BOARDS ..................................................... 48
STATUTORY REQUIREMENTS ...................................................................................................... 48
Timely Filed Application for Reduction in Assessment......................................................... 48
Board Invoking Jurisdiction on its Own Motion for Increases ............................................. 49
Notice of Assessments Made Outside the Regular Assessment Period ................................. 49
Exemptions..................................................................................................................... ....... 51
SUBSTANTIVE MATTERS ............................................................................................................. 51
VALUATION ISSUES..................................................................................................................... 51
Allocation of Value Within a Correct Total Assessment ....................................................... 51
Allocation of Subdivided Property ........................................................................................ 52
Base Year Value Transfers .................................................................................................... 52
Valuation of Property Subject to Section 469 Audit.............................................................. 53
Valuation of Portions of Exempt Property ............................................................................ 54
Valuation of Property Not Protested..................................................................................... 54
Valuation of Property for Purposes of California Land Conservation Act Contract
Cancellation................................................................................................................... ....... 54
LEGAL ISSUES ............................................................................................................................. 55
Change in Ownership and New Construction ....................................................................... 55
Classification of the Property................................................................................................ 56
PROCEDURAL ISSUES .................................................................................................................. 56
Escape Assessments............................................................................................................... 56
Penalty Assessments .............................................................................................................. 56
Base Year Value..................................................................................................................... 57
Two- Year Time Limit ............................................................................................................. 57
Extensions and Waivers Regarding Escape and Supplemental Assessments........................ 59
DETERMINING VALUE IN CASES INVOLVING LEGAL ISSUES ....................................................... 60
MATTERS REQUIRING EXHAUSTION OF ADMINISTRATIVE REMEDIES ......................................... 60
CHAPTER 6: OVERVIEW OF APPRAISAL AND LEGAL ISSUES................................. 62
TAXABLE PROPERTY................................................................................................................... 62
Lien Date ............................................................................................................................... 62
Appraisal Unit ....................................................................................................................... 63
PROPERTY VALUATION UNDER ARTICLE XIII A ........................................................................ 63
Change in Ownership ............................................................................................................ 64
Present Interest................................................................................................................... 65
Beneficial Use.................................................................................................................... 65
Value Equivalence ............................................................................................................. 65
Ownership Interests in Legal Entities................................................................................ 66
Reporting Changes in Ownership...................................................................................... 66
New Construction .................................................................................................................. 66
Addition ............................................................................................................................. 67
Alteration ........................................................................................................................... 67
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Date of Completion............................................................................................................ 67
Modernization.................................................................................................................. . 67
Normal Maintenance.......................................................................................................... 68
Rehabilitation................................................................................................................. ... 68
Remodeling..................................................................................................................... .. 68
Replacement.................................................................................................................... .. 68
Renovation..................................................................................................................... ... 68
Exclusions from New Construction Reassessment............................................................ 68
Supplemental Assessments..................................................................................................... 69
Declines in Value................................................................................................................... 69
Classification of the Property................................................................................................ 70
Machinery and Equipment................................................................................................. 71
Manufactured Homes and Floating Homes ....................................................................... 71
California Land Conservation Act Properties.................................................................... 71
Taxable Possessory Interests.............................................................................................. 71
Penalty Assessments .............................................................................................................. 72
Misfortune or Calamity ......................................................................................................... 72
Exemptions..................................................................................................................... ....... 73
VALUATION METHODS ............................................................................................................... 74
Approaches to Value.............................................................................................................. 74
Cost Approach.................................................................................................................... 75
Comparative Sales Approach............................................................................................. 76
Income Approach............................................................................................................... 77
CHAPTER 7: EVIDENCE, PRESUMPTIONS, AND BURDENS OF PROOF................... 79
RULES OF EVIDENCE FOR APPEALS HEARINGS............................................................................ 79
Standard for Admissible Evidence......................................................................................... 80
Informal Process.................................................................................................................... 80
90- Day Rule for Comparable Sales Information................................................................... 81
Subpoena Authority ............................................................................................................... 82
PRESUMPTIONS APPLICABLE TO ASSESSMENT APPEALS ............................................................. 83
Presumption that the Assessor has Properly Performed His or Her Duties......................... 84
Presumption that a Governmental Employee has Performed the Job Correctly .................. 84
Exceptions to Assessor's Presumption of Correctness for Dwellings and Escape
Assessments.................................................................................................................... ....... 85
Purchase Price Presumption................................................................................................. 85
Presumption Regarding Enforceable Restrictions ................................................................ 86
Retaining Assessor's Presumption of Correctness ................................................................ 87
When the Assessor Must Present Evidence First................................................................... 87
Single- Family Homeowner Hearings ................................................................................ 88
Penalty Hearings ................................................................................................................ 88
Escape Assessment Hearings ............................................................................................. 88
Nonenrollment of Purchase Price Hearings ....................................................................... 88
Raise Letter........................................................................................................................ 89
Presumptions Affecting Title to Property .............................................................................. 89
BURDEN OF PROOF ..................................................................................................................... 90
Preponderance of Evidence Standard ................................................................................... 90
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Clear and Convincing Evidence Standard ............................................................................ 90
CHAPTER 8: HEARING PROCEDURES.............................................................................. 91
RESOLUTION VIA ROLL CORRECTION OR STIPULATION .............................................................. 91
Roll Correction Subsequent to Application Being Filed ....................................................... 91
Stipulation in Place of Appearance and Testimony............................................................... 91
CONDUCTING APPEALS HEARINGS.............................................................................................. 92
Conduct of Board Members and Hearing Officers ............................................................... 92
Announcement of the Property and Issues ............................................................................ 93
Appearance by the Applicant................................................................................................. 94
Swearing in of the Parties and Witnesses.............................................................................. 94
Presentation of Evidence....................................................................................................... 94
Questioning Parties and Witnesses ....................................................................................... 95
Hearings Will Be Recorded ................................................................................................... 96
Hearings Must be Open to the Public ................................................................................... 96
APPLICABILITY OF THE BROWN ACT........................................................................................... 97
CONTINUANCE.................................................................................................................... ....... 97
POSTPONEMENTS ........................................................................................................................ 98
CHAPTER 9: DECISION PROCESS....................................................................................... 99
QUORUM AND VOTE REQUIRED.................................................................................................. 99
APPROPRIATE USE OF APPRAISAL APPROACHES AND METHODS ................................................ 99
Definition of Value................................................................................................................. 99
Definition of Property Rights .............................................................................................. 100
Determine Proper Appraisal Method( s).............................................................................. 101
PROCEDURAL DUE PROCESS..................................................................................................... 101
DECISION MUST BE BASED ON EVIDENCE PRESENTED.............................................................. 102
Use of Confidential Assessor Information........................................................................... 102
Rules of Thumb .................................................................................................................... 102
Weight of the Evidence ........................................................................................................ 103
BOARD MUST HAVE SUFFICIENT INFORMATION TO MAKE A DECISION.................................... 103
RECOGNITION OF PRESUMPTIONS ............................................................................................. 103
USE OF PERSONAL KNOWLEDGE BY THE BOARD MEMBERS ..................................................... 103
FULL VALUE ............................................................................................................................. 104
FINDINGS OF FACT.................................................................................................................... 104
TRANSCRIPT OF HEARING......................................................................................................... 105
NOTICE OF DECISION ................................................................................................................ 106
WHEN IS A DECISION FINAL...................................................................................................... 106
RECONSIDERATION AND REHEARING........................................................................................ 107
CHAPTER 10: JUDICIAL REVIEW OF THE DECISION................................................ 108
PREREQUISITE TO FILING FOR JUDICIAL REVIEW ...................................................................... 108
APPENDIX 1: LIST OF ASSESSORS' HANDBOOK SECTIONS .................................... 110
APPENDIX 2: REVENUE AND TAXATION CODE SECTIONS..................................... 112
APPENDIX 3: PROPERTY TAX RULES............................................................................. 129
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APPENDIX 4: SUMMARY OF COURT CASES ................................................................. 158
GLOSSARY OF TERMS.......................................................................................................... 165
BIBLIOGRAPHY................................................................................................................... .. 170
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CHAPTER 1: FUNCTION AND PURPOSE OF APPEALS BOARDS
Section 16 of article XIII of the California Constitution provides for the establishment of local
boards of equalization and, pursuant to that authority, the Legislature has mandated guidelines
for the functioning of those boards by enacting sections 1601 through 1645.5 of the Revenue and
Taxation Code3, and the State Board of Equalization has adopted sections 301 through 326 of
Title 18, Public Revenues, California Code of Regulations. In addition to the procedures
mandated by the Legislature, those boards are also governed by local rules adopted by boards of
supervisors pursuant to the authority of section 16 of article XIII of the California Constitution.
ROLE OF APPEALS BOARDS
Section 1601 defines county board as " a county board of supervisors meeting as a county board
of equalization or an assessment appeals board." Throughout this manual, unless otherwise
noted, we use the term appeals board when referring to the body charged with the equalization
function for the county.
The function of an appeals board is to determine the full value of property or to determine other
matters of property tax assessment over which the appeals board has jurisdiction.
Section 15606, subdivision ( c), of the Government Code authorizes that the State Board of
Equalization will " prescribe rules and regulations to govern local boards of equalization when
equalizing…." Pursuant to that provision, the State Board promulgated Property Tax Rule 3024
which enumerates the functions of an appeals board as follows:
( a) The functions of the board are:
( 1) To lower, sustain, or increase upon application, or to increase after giving
notice when no application has been filed, individual assessments in order to
equalize assessments on the local tax assessment roll,
( 2) To determine the full value and, where appealed, the base year value of the
property that is the subject of the hearing,
( 3) To hear and decide penalty assessments, and to review, equalize, and adjust
escaped assessments on that roll except escaped assessments made pursuant to
Revenue and Taxation Code section 531.1,
( 4) To determine the classification of the property that is the subject of the
hearing, including classifications within the general classifications of real
property, improvements, and personal property. Such classifications may result in
the property so classified being exempt from property taxation.
3 All statutory section references are to the Revenue and Taxation Code unless otherwise designated.
4 All references to Rules are Property Tax Rules from Title 18, Public Revenues, California Code of Regulations.
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( 5) To determine the allocation of value to property that is the subject of the
hearing, and
( 6) To exercise the powers specified in sections 1605.5 and 1613 of the Revenue
and Taxation Code.
( b) Except as provided in subsection ( a)( 4), the board has no jurisdiction to grant
or deny exemptions or to consider allegations that claims for exemption from
property taxes have been improperly denied.
( c) The board acts in a quasi- judicial capacity and renders its decision only on
the basis of proper evidence presented at the hearing.
In discharging its duties, an appeals board " is exercising judicial functions, and its decisions as to
the value of the property and the fairness of the assessment so far as amount is concerned
constitutes an independent and conclusive judgment of the tribunal created by law for the
determination of that question which abrogates and takes the place of the judgment of the
assessor upon that question." 5 Thus, an appeals board is a quasi- judicial body. It has some of
the characteristics of a court of law as it adjudicates disputes between taxpayers and the assessor,
and its decisions are legally binding and enforceable. However, rules of evidence and other
matters of procedure are less formal than in a court of law. Nevertheless, due process requires
that an appeals board must give each side a reasonable notice of hearing and an opportunity to
present its case and to question the other side's evidence and witnesses. 6
Furthermore, an appeals board, as a quasi- judicial body, has the right to pass on its own
jurisdiction in the first instance. 7
In the process of determining the value of property, an appeals board is generally limited to the
evidence presented by the assessor and taxpayer. An appeals board may, on its own motion,
request the assessor or taxpayer to provide specific evidence and may examine the assessor and
taxpayer on evidence they present; 8 however, the appeals board members should not individually
obtain evidence on their own, or consider evidence provided by individual board members.
An appeals board's decision is final and may not be reheard by the board even if requested by the
assessor or taxpayer. Furthermore, an appeals board may not reconsider or rehear its own
decision on an application unless a court so orders, except as provided in Rule 326 and discussed
in Chapter 9 of this manual.
On appeal, a court's review of an appeals board's findings of factual issues is limited to a
determination of whether the appeals board's findings were supported by substantial evidence
presented at the appeals hearing. 9 An appeals board's factual determination of value may not be
5 Los Angeles Gas and Electric Co. v. County of Los Angeles ( 1912) 162 Cal. 164.
6 Section 1610.2; Rules 307, 313, 316, and 317.
7 County of Sacramento v. Assessment Appeals Board No. 2 ( 1973) 32 Cal. App. 3d 654.
8 Section 1609.4.
9 County of San Diego v. Assessment Appeals Bd. No. 2 ( 1983) 148 Cal. App. 3d 548.
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set aside by a reviewing court unless it was fraudulent, arbitrary, involved an abuse of discretion,
or unless the board failed to follow standards prescribed by the Legislature. 10 However, an
appeals board's findings on legal issues ( including the valuation method used by an appeals
board) are subject to complete review by a court on appeal. 11
An appeals board has no jurisdiction to grant or deny exemptions, to decide disputes involving
tax rates, local governmental budgets, tax bills, tax policy, and has no authority to consider a
taxpayer's ability to pay in making its determination.
COMPOSITION OF APPEALS BOARDS
BOARDS OF SUPERVISORS SITTING AS LOCAL BOARDS OF EQUALIZATION
A county board of equalization is comprised of the members of the county board of supervisors;
however, the two boards are distinct constitutional bodies and act in different capacities.
10 County of San Diego v. Assessment Appeals Bd. No. 2, supra.
11 Georgia- Pacific Corp. v. County of Butte ( 1974) 37 Cal. App. 3d 461.
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There are 19 counties in California where the board of supervisors also performs the duties of the
county board of equalization. 12
TABLE 1
LOCAL BOARDS OF EQUALIZATION
County
Population13
( 2000)
No. of Appeals Filed
( 2000- 01)
Alpine 1,220 11
Amador 35,450 51
Calaveras 41,000 Unknown
Colusa 19,150 7
Del Norte 28,250 47
Glenn 26,900 Unknown
Imperial 149,000 108
Inyo 18,200 27
Kings 134,500 Unknown
Lake 59,100 55
Mendocino 87,400 60
Modoc 9,550 1
Napa 125,800 Unknown
Plumas 21,000 Unknown
San Benito 54,500 12
Sierra 3,610 3
Tehama 56,700 33
Trinity 13,100 5
Tuolumne 55,200 19
TERM OF OFFICE FOR LOCAL BOARDS OF EQUALIZATION
The term of office for a member of a local board of equalization is the same as that individual's
term as a member of the county board of supervisors. Only elected county supervisors or
individuals appointed to serve out a term arising from a vacancy on a board of supervisors may
sit as members of a local board of equalization. When a member of a board of supervisors leaves
office, his or her duties as a member of the local board of equalization are relinquished.
ASSESSMENT APPEALS BOARDS
Most counties in which a significant number of applications are filed annually, or in which the
assessment roll is comprised of many complex property types, have created assessment appeals
boards.
12 California State Board of Equalization, A Report on Budgets, Workloads, and Assessment Appeals Activities in
California Assessors' Offices, September 2002, Sacramento, California, p. 20.
13 California Department of Finance, Intercensal Estimates of the Population of California: State and Counties
1990- 2000, Report I 90- 00 July.
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Section 16 of article XIII of the Constitution requires, in part, that:
The Legislature shall provide for: ( a) the number and qualifications of members
of assessment appeals boards, the manner of selecting, appointing, and removing
them, and the terms for which they serve, and ( b) the procedure by which two or
more county boards of supervisors may jointly create one or more assessment
appeals board.
Members of assessment appeals boards are selected by one of two statutorily prescribed
methods:
· Under section 1622, the members of a county board of supervisors nominate individuals
to the board and the presiding judge of the superior court of the county selects by lot
three members from among those persons nominated; or,
· Under section 1622.1, individuals are appointed directly to a board by the majority vote
of the board of supervisors.
Under the latter method of direct appointment, the assessment appeals board may consist of
either three or five members, but a five- member board will act only as a three- member panel,
which members are designated by the clerk. Every county in California that has adopted an
ordinance creating an assessment appeals board has adopted the direct appointment method for
appeals board members.
Section 16 of article XIII provides that either the board of supervisors or one or more assessment
appeals boards " shall constitute the county board of equalization for a county." This provision
has been interpreted to mean that once the board of supervisors acts to establish an assessment
appeals board, the power to equalize assessments is vested solely in the assessment appeals
board. There is no constitutional or statutory authority for the board of supervisors to assume
any jurisdiction over an appeals board in its valuation function.
Section 1622.2 permits up to two members of a county board of supervisors who have served as
members of a county board of equalization also to serve as assessment appeals board members.
The term of office for such an individual, however, cannot exceed his or her term of office as a
member of the county board of supervisors.
There are 39 counties in California in which the board of supervisors has created one or more
assessment appeals boards to function as the county board of equalization.
ELIGIBILITY REQUIREMENTS FOR ASSESSMENT APPEALS BOARD MEMBERS
Assessment appeals may involve complex issues such as the valuation of large subdivisions in
various stages of development, industrial developments, shopping centers, undeveloped land in
transition, possessory interests, view site property, and motels and apartments with large vacancy
factors. Since most persons have limited experience in complex appraisal matters, the
Legislature enacted eligibility requirements for assessment appeals board members.
Section 1624 sets forth the eligibility requirements as follows:
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A person is not eligible for nomination for membership on an assessment appeals
board unless he or she meets one of the following criteria:
( a) Has a minimum of five years professional experience in this state as a
certified public accountant or public accountant, a licensed real estate broker, an
attorney, a property appraiser accredited by a nationally recognized professional
organization, or a property appraiser certified by the Office of Real Estate
Appraisers.
( b) Is a person who the nominating member of the board of supervisors has
reason to believe is possessed of competent knowledge of property appraisal and
taxation.
The phrase " property appraiser accredited by a nationally recognized professional organization"
has raised questions in some counties in evaluating the eligibility of persons nominated to
become an assessment appeals board member. While the Legislature did not define " nationally
recognized professional organization" as used in section 1624, the State Board of Equalization
recognizes the following organizations as qualifying within the meaning of section 1624:
· Appraisal Institute— formerly known as American Institute of Real Estate Appraisers
( AIREA) and Society of Real Estate Appraisers ( SREA)
· International Association of Assessing Officers
· International Right of Way Association
· National Association of Real Estate Appraisers
· National Association of Review Appraisers
· Society of Auditor- Appraisers
· American Society of Appraisers
· American Society of Farm Managers and Rural Appraisers
· National Association of Independent Fee Appraisers
In counties with a population of 200,000 or more, section 1624.05 narrows the eligibility
requirements for appeals board members to the same four categories of professional experience
set forth in section 1624. However, unlike section 1624, an individual does not qualify for
appointment by being " a person who the nominating member of the board of supervisors has
reason to believe is possessed of competent knowledge of property appraisal and taxation."
Individuals who have worked in an assessor's office are not eligible for appointment to an
assessment appeals board within three years of leaving that employment. 14 This disqualification
results from employment in any county assessor's office, not only the assessor's office in the
county in which the appointment to the appeals board is contemplated.
14 Section 1624.1.
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TERM OF OFFICE FOR ASSESSMENT APPEALS BOARDS
Once an assessment appeals board has been established in a county, the term of office for
members selected to serve on the board is three years beginning on the first Monday in
September. Section 1623 provides the formula for appointment of appeals board members to
newly created boards. The three- year terms for board members are staggered so as to avoid
having a panel consisting of all new members with no appeals board experience.
In the event of a vacancy on a board, the person selected to fill the vacancy will serve for the
remainder of the unexpired term. That individual is then eligible to be appointed to a full three-year
term.
The board of supervisors should take action to reappoint the current member or to appoint a new
member at least 60 days prior to expiration of an assessment appeals board member's term. A
member whose term has expired and who has not been reappointed may continue to serve for up
to 60 days after the expiration of such term with respect to matters on which the assessment
appeals board had commenced hearing prior to the expiration of the member's term. 15 However,
if a member's term expires and he or she is not reappointed and no new member is appointed,
then the incumbent member continues to serve until the board of supervisors reappoints or
appoints a new member.
A county board of supervisors cannot establish term limits for assessment appeals board
members' total length of service, e. g., six years, because the authority to set terms is within the
Constitutional authority of the Legislature. The board of supervisors, however, can exercise its
right not to re- appoint an individual to an assessment appeals board.
TRAINING OF MEMBERS
Section 1624.01 requires that all new members of assessment appeals boards must complete a
training course. While training is not required for members of boards of equalization, those
members are encouraged to attend the training course to keep abreast of important changes in
property tax laws. Section 1624.01 provides:
( a) On or after January 1, 2001, any person newly selected for membership on,
or newly appointed to be a member of, an assessment appeals board shall
complete the training described in subdivision ( a) of Section 1624.02 prior to the
commencement of his or her term on the board or as soon as reasonably possible
within one year thereafter.
( b) A member of an assessment appeals board who does not complete the
training required by this section in the time permitted shall complete that training
within 60 days of the date of the notice by the clerk advising the member that his
or her failure to complete the training constitutes resignation by operation of law.
If the member fails to comply within 60 days of the notice by the clerk, the
15 Subdivision ( e) of section 1623. For ease of reference in this manual, we may refer to subdivisions as, for
example, section 1623( e).
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member shall be deemed to have resigned his or her position on the board.
Notwithstanding the provisions of this section, a board member may continue to
retain his or her position on the board in order to complete all appeal hearings to
which the member is assigned and which commenced prior to the date of
resignation pursuant to this subdivision.
The training required by section 1624.01 will include an overview of the assessment process,
elements in the conduct of assessment appeal hearings, and important developments in case and
statutory law and administrative rules. The training course will be conducted by either the State
Board of Equalization or by the county at the county's option. The curriculum for the course of
training will be developed in consultation with county boards of supervisors, administrators of
assessment appeals boards, assessors, and local property taxpayer representatives.
SELECTION OF BOARD CHAIR
Rule 310 provides that the appeals board will select a chair:
The board shall select one of its members to act as chair and preside over all
hearings. This function may be rotated among board members. The chair shall
exercise such control over the hearings as is reasonable and necessary. He or she
shall make all rulings regarding procedural matters and regarding the admission
or exclusion of evidence.
The following are examples of duties of a chair:
1. Conduct meetings in an orderly fashion, recognizing members, persons affected or their
agents, and the assessor or assessor's deputy who wish to speak to an agenda item or
issue.
2. Ensure that agendas for the meetings are adhered to and completed.
3. Ensure that hearings run smoothly and that repetitive remarks/ testimony are discouraged
or minimized.
4. Recess hearings if disagreements between members occur, and resolve the issues out of
the presence of the parties to the hearing.
5. Ensure that objections are noted in the record and procedural matters are resolved.
6. Request that all persons, including other members, act respectfully and courteously to one
another.
7. Ensure that the hearing record reflects all issues on the application so as to preserve them
for appeal.
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MULTI- COUNTY APPEALS BOARD
Section 16 of article XIII of the Constitution allows for the creation of appeals boards whose
jurisdiction would include the equalization of property values for more than one county.
Section 16 provides in part:
… Two or more county boards of supervisors may jointly create one or more
assessment appeals boards which shall constitute the county board of equalization
for each of the participating counties.
County boards of supervisors may invoke this provision of the Constitution by:
· Creating an appeals board to adjudicate all property disputes within all participating
counties; or
· Creating an appeals board specifically to adjudicate a property under appeal where the
property is located in all of the participating counties.
HEARING OFFICERS
Since 1970 counties have had the option under section 1636 of appointing a hearing officer to
enhance their assessment appeals process. Section 1636 allows a county board of supervisors to
appoint one or more assessment hearing officers, or to contract with the state Office of
Administrative Hearings for the services of an administrative law judge pursuant to the
provisions of section 27720 through section 27728 of the Government Code.
Section 1637 sets forth the conditions under which an application may be heard by a hearing
officer. First, the applicant is the assessee and has filed an application under section 1603.
Second, for counties in which the board of supervisors has not adopted a resolution pursuant to
section 1641.1 ( see below), the value of the property appealed, as shown on the current
assessment roll, does not exceed $ 500,000; or the property is a single- family dwelling,
condominium or cooperative, or a multiple- family dwelling of four units or less regardless of
value. Third, an assessment hearing officer may conduct hearings only on applications where the
applicant has requested that the hearing be held before a hearing officer. Section 1637 further
allows boards of supervisors to adopt a resolution whereby the assessor must also agree to a
hearing before a hearing officer if the total assessed value of the property on the current roll
exceeds an amount set by the resolution. This last provision does not apply in cases involving
owner- occupied residential property.
Some counties have chosen to confine their hearing officer duties to resolving issues regarding
change in ownership and new construction questions only. These hearing officers are restricted
to adjudicating those legal questions and are prohibited from making value determinations.
Hearings by a hearing officer are subject to the same statutes and regulations that apply to
appeals boards and, like hearings held before an appeals board, are conducted in accordance with
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section 1609 which provides that technical rules of evidence need not be observed. 16 When the
matter is before a hearing officer, the hearing and disposition of an application will be conducted
in an informal manner. 17 At the conclusion of the hearing, the hearing officer prepares a report
and recommendation for the appeals board. Unless the board of supervisors adopts a resolution
as provided in sections 1640.1 and 1641.1, the recommendation is binding upon the appeals
board and the appeals board will establish the assessed value consistent with the
recommendation. If the board of supervisors adopts a resolution pursuant to section 1640.1, the
hearing officer's recommendation is not binding on the board and the applicant is entitled to a
full hearing before the appeals board. If a resolution pursuant to section 1641.1 is adopted,
acceptance or rejection of the recommendation is left to the discretion of the appeals board. Of
the ten counties that have appointed hearing officers, 18 some findings are final and some are
recommendations only.
TABLE 2
HEARING OFFICERS
County
Population19
( 2000)
No. of Appeals
Filed ( 2000- 01)
No. of Hearing
Officers
Decision
Binding on
AAB
Alameda 1,466,900 Unknown 1 Yes
Butte 205,400 Unknown 1 Yes
Los Angeles 9,716,100 19,760 23 No
Orange 2,893,100 7,688 5 Yes
Sacramento 1,242,000 965 1 No*
San Bernardino 1,742,300 2,574 2 Yes
San Diego 2,814,500 2,900 14 Yes
San Francisco 787,500 728 8 No
Santa Clara 1,709,500 2,760 2 Yes
Ventura 765,300 1,338 1 Yes
* The hearing officer makes a recommendation to the board of supervisors, not the
assessment appeals board.
In order to avoid a possible conflict of interest, a member of an appeals board should not sit
concurrently as an assessment hearing officer in those counties that have adopted resolutions
pursuant to sections 1640.1 and 1641.1. In those counties, such concurrent service may create a
conflict of interest for a hearing officer who later sits on the appeals board that is empowered to
hold a hearing de novo on the hearing officer's recommendation.
In counties that have not adopted resolutions pursuant to sections 1640.1 and 1641.1, a member
of an appeals board may sit concurrently as an assessment hearing officer provided ( 1) the board
16 Rule 313, subsection ( e).
17 Section 1638.
18 California State Board of Equalization, A Report on Budgets, Workloads, and Assessment Appeals Activities in
California Assessors' Offices, September 2002, Sacramento, California, p. 20.
19 California Department of Finance, Intercensal Estimates of the Population of California: State and Counties
1990- 2000, Report I 90- 00 July.
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member/ hearing officer has been appointed by the county board of supervisors to serve
concurrently in both positions, and ( 2) to avoid an appearance of conflict of interest, no hearing
officer's recommendation should be submitted to a board on which the hearing officer serves as a
board member.
ELIGIBILITY REQUIREMENTS FOR HEARING OFFICERS
If a hearing officer is created under the provisions of the Revenue and Taxation Code, the
eligibility criteria for appointment include the same requirements as contained in section 1624.
The more restrictive professional experience requirements of section 1624.05 in counties with a
population of 200,000 or more do not apply to hearing officers.
If a hearing officer is created under the provisions of the Government Code, the appointee must
meet the eligibility requirements pursuant to section 27724 of the Government Code.
Section 27724 provides:
Any county hearing officer, or any deputy or assistant hearing officer, appointed
pursuant to this chapter, shall be an attorney at law having been admitted to
practice before the courts of this state for at least five years prior to his or her
appointment.
INTERACTION WITH OTHER OFFICIALS/ DEPARTMENTS
An appeals board is an independent entity created to adjudicate disputes between taxpayers and
the county assessor, and, in the performance of its duties, functions in conjunction with other
county and state officials and departments. The board looks to county and state officials for
appraisal, procedural, and legal advice and instructions, and it relies on various county
departments to carry out decisions made by the board.
COUNTY BOARD OF SUPERVISORS
The Constitution, article XIII, section 16, provides in part:
… County boards of supervisors shall fix the compensation for members of
assessment appeals boards, furnish clerical and other assistance for those boards,
adopt rules of notice and procedures for those boards as may be required to
facilitate their work and to insure uniformity in the processing and decision of
equalization petitions, and may provide for their discontinuance.
Section 1625 provides that any member of an assessment appeals board may be removed for
cause by the board of supervisors.
While a board of supervisors has administrative authority over the assessment appeals board,
such is not the case relative to the equalization duties of an assessment appeals board. As noted
above, there are no provisions for a board of supervisors to assume any jurisdiction over an
assessment appeals board in its equalization functions. In terms of circumscribing the power of
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an assessment appeals board, the board of supervisors may only appoint or remove individual
members, discontinue a board, and provide administrative guidance to appeals boards.
It is within the purview of the board of supervisors to decide a taxpayer's claim for a refund or
cancellation of taxes paid. 20 Although the board of supervisors cannot review the decision of the
appeals board and substitute its opinion of value on the assessment roll, the board of supervisors
can decide to grant a taxpayer's separately filed claim for refund. If the taxpayer has indicated
that the application to the appeals board also serves as a claim for refund, 21 however, then a
denial of the application by the appeals board will be deemed a denial of the claim for refund as
well. The taxpayer will then have six months to file an action for refund of taxes in the superior
court. 22
COUNTY LEGAL ADVISOR
The county legal advisor is the county counsel; or, if there is no county counsel, the district
attorney of the county in all counties other than San Francisco. The city attorney of the City and
County of San Francisco is the county legal advisor in that jurisdiction. 23 The county legal
advisor has the responsibility of advising the appeals board and the clerk of the board in legal
and procedural matters regarding assessment appeals hearings and to represent the board in civil
proceedings to which the board is a party. The legal advisor's advice may be oral, written, or by
representation during a hearing. A county board of supervisors may contract with a private law
firm to provide legal services to an appeals board.
In no event may the appeals board and the assessor be represented by the same private law firm,
or if the county counsel's office serves as county legal advisor, by the same individual/
representative of that office. In this respect, section 31000.7 of the Government Code provides:
The same law firm shall not be employed to advise or represent both the assessor
and the county board of equalization on any matters relating to hearings before
the county board of equalization. This prohibition shall not apply to the county
counsel's office. Individual representatives of that office may represent the
assessor and the county board of equalization, as long as the same individual does
not represent both parties.
Section 31000.724 and State Bar rules of professional conduct25 require that all care should be
exercised to ensure that the county counsel's office, the district attorney's office, or the city
attorney's office avoids conflicts of interest by imposing a distinct division of responsibilities
between the attorney representing the appeals board and the attorney representing the assessor.
In addition, the attorney representing the appeals board should not partake in any ex parte
20 Section 4946 and section 5096.
21 Section 5097.
22 Section 5141.
23 Rule 301.
24 Howitt v. Superior Court ( 1992) 3 Cal. App. 4th 1575.
25 Rules Prof. Conduct, rule 3- 310.
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discussions regarding the substantive issues of an appeal with either the applicant or the assessor,
nor with any of the attorneys, agents, or representatives of the applicant or assessor. Any county
that cannot effectively erect an ethical wall between attorneys representing the appeals board and
the assessor should obtain separate independent counsel to advise the board or the assessor. 26
CLERK OF THE BOARD
In most counties, the clerk of the board of supervisors is also the clerk of the assessment appeals
board. While the clerk has responsibilities directly supportive of the functions of the board of
supervisors, the duties discussed here are those associated with assessment appeals proceedings
only.
The clerk of the board is tasked with a myriad of administrative duties relative to the functioning
of the assessment appeals process. Some of these responsibilities include:
· Provide public notice of appeals board meetings to equalize assessments. 27
· Accept applications from taxpayers seeking a reduction in property tax assessments. 28
· Ensure that applications meet the requirements of Rule 305 for completeness and
timeliness and are on the State Board of Equalization prescribed form. 29
· Respond to taxpayers' inquiries regarding their applications as well as hearing
procedures.
· Schedule hearings before hearing officers or appeals boards. 30
· Determine which appeals board members will comprise a panel for a hearing.
· Monitor training for assessment appeals board members. 31
· Provide needed information to the hearing officer or appeals board members for the
hearing.
· Provide a copy of each application and request for amendment of an application to the
county assessor. 32
· Administer an oath to all individuals presenting evidence at the hearing.
· Announce each item on the hearing agenda. 33
· Maintain copies of evidence presented at the hearing.
26 Howitt v. Superior Court, supra.
27 Section 1601.
28 Section 1603.
29 Section 1603; Rule 305.
30 Section 1605.5; Rule 307.
31 Section 1624.01.
32 Rule 306.
33 Rule 313.
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· Tape- record, report, or videotape the hearing34
· Record the final decision of the board. 35
· Provide a copy of the tape recording or a transcript of the hearing to applicants who
request it upon payment of the appropriate fee. 36
· Transmit findings of fact when requested. 37
· Issue subpoenas at the direction of the board. 38
· Deliver to the county auditor a statement of all changes made by the board during the
preceding calendar month with an affixed affidavit. 39
· Certify the last day of the regular filing period and notify the State Board of Equalization
as to whether the last day of the regular filing period for the county will be September 15
or November 30.40
An application must be timely filed in order to confer jurisdiction on an appeals board. While an
appeals board has the ultimate responsibility to rule on the timeliness of an application, most
counties have adopted rules of practice to allow the clerk of the board to make this
determination. The Attorney General has stated in a formal opinion41 that this practice does not
violate due process if the board of supervisors establishes for the clerk certain specific guidelines
for determining which applications are untimely filed, and, when so determined, directs the clerk
to notify applicants and advise them that they may petition the board to reconsider the decision.
COUNTY ASSESSOR
The assessor in person or through a deputy will attend all hearings of the county board and may
make any statement or produce evidence on matters before the county board. 42 It is the
responsibility of the assessor ( or an appointed deputy) to prepare for the hearing by reviewing
the information on the application. The assessor should be prepared to answer questions posed
by the applicant and the appeals board members during the hearing, and to present evidence to
support the assessor's opinion of value.
34 Rule 312.
35 Sections 1612 and 1628.
36 Section 1611.
37 Section 1611.5; Rule 308.
38 Rule 322.
39 Section 1614.
40 Section 1603, subdivision ( b)( 3)( B).
41 59 Ops. Cal. Atty. Gen. 182 ( 1976).
42 Section 1610.2.
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COUNTY AUDITOR
Section 1614 states:
On the second Monday of each month the clerk shall deliver the statement of all
changes made by the county board during the preceding calendar month to the
auditor with an affixed affidavit….
This statement will contain all decisions rendered by the appeals board, including those that
require an alteration to the assessment roll based on new values determined by the board. The
decisions transmitted to the county auditor must be sufficiently detailed to allow the auditor to
readily ascertain the values that have been established by the board. The appeals board must not
merely provide a narrative or formula and rely on the auditor to compute a value to be enrolled.
The county auditor ( or auditor- controller in some counties) must enroll these new values as
provided by the clerk of the board, and then recalculate the taxes based on the newly enrolled
values. Any special district assessments or taxes must be accounted for in the recalculated tax
amounts.
COUNTY TAX COLLECTOR
The county tax collector reviews recalculated tax amounts computed by the county auditor in
accordance with decisions made by the appeals board. The tax collector then compares the new
tax liabilities to the amount of taxes already paid by the taxpayer.
If a refund is due, the county tax collector notifies the county auditor, and a refund check for the
amount of overpaid taxes is issued to the taxpayer.
If the taxpayer owes additional taxes, the tax collector will mail a notice to the taxpayer
indicating the new tax amount.
STATE BOARD OF EQUALIZATION
The State Board of Equalization is an independently elected five- member board which is part of
the Executive Branch of the California State Government. It is constitutionally vested with the
duty to annually assess ( 1) pipelines, flumes, canals, ditches, and aqueducts lying within two or
more counties, and ( 2) property, except franchises, owned or used by regulated railway,
telegraph, or telephone companies, car companies operating on railways in the state, and
companies transmitting or selling gas or electricity. 43 The Board is also responsible for review,
equalization, and adjustment of assessments of properties owned by local governments that are
located outside their boundaries and assessed pursuant to article XIII, section 11.
43 Article XIII, section 19.
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The Legislature has charged the State Board of Equalization with regulatory authority over
county assessors in the assessment of property, and over county boards of equalization when
equalizing the value of property. 44
The Board performs its duties to local governments through ( 1) the adoption of Property Tax
Rules; ( 2) issuance of Assessors' Handbooks on appraisal ( see Appendix 1); ( 3) issuance of legal
opinions to county assessors, county appeals boards, and property taxpayers; ( 4) issuance of
county assessment compliance and topic audits; and ( 5) providing training and educational
materials to assessors, county appeals boards, and interested members of the public.
Section 15606 of the Government Code requires, in part, that the State Board of Equalization:
… ( c) Prescribe rules and regulations to govern local boards of equalization
when equalizing, and assessors when assessing, including uniform procedures for
the consideration and adoption of written findings of fact by local boards of
equalization as required by Section 1611.5 of the Revenue and Taxation Code.
( d) Prescribe and enforce the use of all forms for the assessment of property for
taxation, including forms to be used for the application for reduction in
assessment…
( g) Prescribe rules and regulations to govern local boards of equalization when
equalizing and assessors when assessing with respect to the assessment and
equalization of possessory interests.
( h) Bring an action in a court of competent jurisdiction to compel an assessor or
any city or county tax official to comply with any provision of law, or any rule or
regulation of the board adopted in accordance with subdivision ( c), governing the
assessment or taxation of property….
Appeals board members may utilize the services of the State Board of Equalization in several
ways:
· By using the reference materials prepared by the Board, e. g., the Assessors' Handbook,
Letters To Assessors, Property Taxes Law Guide, special topic surveys, pamphlets, etc.
· By attending training sessions conducted by Board staff.
· By seeking assistance from Board staff on a particular assessment, procedural, or legal
issue ( whenever possible, an appeals board member's request for assistance should be
made through the county legal advisor).
· By having a Board employee appear before an appeals board during a hearing as an
expert witness. 45
44 Government Code section 15606.
45 Section 1609.5.
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Instructions in the form of Letters To Assessors, the Assessors' Handbook, special topic surveys,
and other similar writings from the State Board of Equalization do not have the force of law.
They are only advisory notice to the assessors and appeals boards of the Board's analyses,
conclusions, and recommendations concerning problems of general concern or are strictly
informational reports of court decisions, legislative enactments, or other factual information.
When problems common to all assessors or appeals boards are of such a nature that equity or law
requires uniformity, the State Board of Equalization adopts regulations, known as Property Tax
Rules, which are set forth in the California Code of Regulations. 46 Property Tax Rules are
legally enforceable by the express provisions of section 15606 of the Government Code. The
State Board of Equalization may also bring a legal action on its own behalf to compel a county
assessor or any city or county tax official to comply with any provisions of law or any validly
adopted Property Tax Rule or regulation.
Unlike the Property Tax Rules, State Board of Equalization guidance in the form of Letters To
Assessors, the Assessors' Handbook, special topic surveys, and other similar writings do not have
the force of law. They are only advisory notice to the assessors and appeals boards of the
Board's analyses, conclusions, and recommendations concerning problems of general concern or
are strictly informational reports of court decisions, legislative enactments, or other factual
information.
STATE ATTORNEY GENERAL
Appeals boards primarily consult with their county legal advisors to seek advice on legal issues.
An appeals board may, however, request the State Office of the Attorney General to issue an
opinion on a specific legal question or issue. The request for an Attorney General opinion must
be made by the county legal advisor on behalf of the appeals board.
As the chief law officer of the state, the Attorney General has broad enforcement powers, and in
the absence of legislative restriction, may file any civil action which he or she deems necessary
for the enforcement of state laws and the protection of public rights and interests. As such, the
Attorney General can bring an action against a county on the grounds that the county appeals
process is in violation of law. 47
46 Title 18, Public Revenues, Property Tax Rules 301 through 326.
47 Pierce v. Superior Court ( 1934) 1 Cal. 2d 759.
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CHAPTER 2: LEGAL FRAMEWORK
LAWS THAT GOVERN THE ASSESSMENT APPEALS PROCESS
The assessment appeals process is governed by substantive and procedural law derived from
constitutional provisions and implemented by statutes, regulations, and local rules. General
principles of legal construction determine the proper order of precedence accorded those laws to
ensure that they do not exceed the authority granted and are not inconsistent with other
fundamental principles of law.
PREEMPTION OF LAWS
Preemption refers to the exclusive power of a legislative body to legislate in certain areas so as
to preempt the legislative or rulemaking authority of a subordinate political subdivision.
Whenever the State Legislature has seen fit to adopt a general scheme for the regulation of a
particular subject, the entire control over whatever phases of the subject are covered by state
legislation ceases as far as local legislation is concerned. 48 For example, in those areas where the
State Legislature has enacted statutes, counties have no authority to adopt local rules in conflict
with those statutes.
REGULATION MAY NOT EXCEED STATUTORY AUTHORITY
A regulation is a rule or order which interprets or implements a validly enacted statute to carry
out the intent of the law and to guide an agency in the uniform application of the law. An agency
or other governmental body has no power to adopt a regulation in conflict with or which alters or
violates a statute. 49 In addition, an agency or other governmental body may not adopt a
regulation for which there is no constitutional or statutory authority.
ASSESSMENT APPEALS PROCEDURES MAY NOT VIOLATE BASIC CONSTITUTIONAL
GUARANTEES OF DUE PROCESS
Although constitutional requirements of procedural due process do not require that an assessment
appeal involve a trial before a court, a proceeding before an administrative officer or board is
constitutionally adequate only if the basic requirements of notice and opportunity for hearing are
met. 50
UNITED STATES CONSTITUTION
The assessment appeals process, though a function of state law, derives from federal
constitutional principles of due process. The 14th Amendment of the United States Constitution
requires that no state " shall … deprive any person of life, liberty, or property, without due
process of law." In the context of assessment appeals procedures, the United States Supreme
48 Pipoly v. Benson ( 1942) 20 Cal. 2d 366.
49 California Welfare Rights Org. v. Carleson ( 1971) 4 Cal. 3d 445; Cabral v. State Board of Control ( 1980) 112
Cal. App. 3d 1012.
50 7 Witkin, Summary of Cal. Law ( 9th ed. 1988) Constitutional Law § 518, p. 715.
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Court has held that the due process clause does not require that the notice of and opportunity to
contest an assessment must be given prior to the making of the assessment. Due process requires
only that, prior to the tax becoming final and irrevocable, the taxpayer is afforded a hearing on
the assessment before a body such as an appeals board which is duly constituted for such a
purpose. 51
CALIFORNIA CONSTITUTION
Consistent with due process principles, section 16 of article XIII of the California Constitution
specifically authorizes the creation of one or more county boards for the purpose of equalizing
assessments of individual properties and briefly describes their function of equalizing values on
the local roll. Section 16 delegates authority to the county board of supervisors to provide
resources for the essential administrative functions of appeals boards and to " adopt rules of
notice and procedures for those boards as may be required to facilitate their work and to insure
uniformity in the processing and decision" of applications. When rules conflict with statutes, the
statutes prevail.
REVENUE AND TAXATION CODE AND OTHER CODES
The Revenue and Taxation Code implements the constitutional provisions applicable to
assessment appeals and other property tax matters. The property tax statutes relative to appeals
are set forth in Division 1, Part 3, Chapter 1, Article 1, of the Revenue and Taxation Code. The
assessment appeals provisions fall principally within sections 1601 through 1645.5 ( see
Appendix 2). Those sections provide the basic framework of the assessment appeals process and
are intended to promote fair and uniform procedures. In addition, the Revenue and Taxation
Code sections may incorporate and follow the provisions of other code sections as necessary to
carry out the purposes of the assessment appeals procedures. For example, section 1611.6 adopts
the definition of the term arbitrary and capricious set forth in Government Code section 800.
PROPERTY TAX RULES
Title 18, Public Revenues, Division 1, Chapter 1 of the California Code of Regulations, in part,
are the body of regulations that implement and interpret the statutes governing the role and
function of assessment appeals boards and boards of equalization. This set of regulations is
commonly referred to as the Property Tax Rules and each section is designated as a " Rule"
followed by the California Code of Regulations section number. Property Tax Rule 1 expressly
provides, in pertinent part, that "[ t] he rules in this subchapter govern assessors when assessing,
county boards of equalization and assessment appeals boards when equalizing…" Rules 301
through 326 make up the main body of rules governing appeals boards procedures ( see
Appendix 3).
LOCAL RULES
Article XIII section 16 of the Constitution specifically directs county boards of supervisors to
adopt rules of notice and procedure to facilitate the work of local appeals boards under the
51 Nickey v. Mississippi ( 1934) 292 US 393.
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county's control and to ensure uniformity in the processing and decision of applications before
those local appeals boards. Local rules are valid if they are not expressly prohibited by
section 16, are not preempted by or in conflict with statutes or regulations, and comport with due
process. 52
CASE LAW
LITIGATION OF ASSESSMENT APPEALS CASES
A party who is dissatisfied with a local appeals board's decision may bring an action in superior
court, the state trial court, challenging that decision. The superior court may reverse the appeals
board on legal issues and remand or send back the case to the appeals board with instructions, or
the court can decide the case itself in those instances where no issue of valuation remains to be
determined. Unless the case is further appealed, the appeals board must rehear the appeal and is
bound by the court's instructions to follow the court's interpretation of the law. Superior court
decisions, while lacking value as legal precedent, are nonetheless binding on the parties before
the court.
APPELLATE COURT DECISIONS
A published opinion made by the California Court of Appeal, the intermediate level appellate
court in California, in a particular appellate district, and for which no conflicting published
opinion of law exists in another appellate district of the state, is binding on all trial courts, and
other inferior forums, including administration tribunals such as appeals boards, in all judicial
districts. 53 Occasionally, district courts of appeal take contrary positions on the same legal issue
and, for that reason, the California Supreme Court may grant a petition for review to decide the
issue and to resolve the conflict. Until the California Supreme Court grants review of conflicting
appellate decisions in different appellate districts, the decision of law of each particular appellate
court is binding authority only within that appellate district. The conflicting appellate decision
from another appellate district may, nonetheless, hold persuasive authority in appellate districts
that have not rendered a decision on the matter.
California Supreme Court opinions interpreting California law are binding on all appeals boards
as the law of the state. If the matter in dispute involves issues of federal constitutional or
statutory law, it may be appealed to the United States Supreme Court. In the event that the
United States Supreme Court accepts the case and renders a decision interpreting California law,
that interpretation supersedes all other interpretations and must be followed by all courts and
administrative tribunals, such as local appeals boards.
52 Williamson v. Payne ( 1938) 25 Cal. App. 2d 497.
53 Auto Equity Sales, Inc. v. Superior Ct. ( 1962) 57 Cal. 2d 450.
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CHAPTER 3: APPLICATION PROCESS
This chapter describes the Application for Changed Assessment form, the requirements for a
valid application, who may file an application for assessment appeal, the application filing
periods, and the amendment of an application.
APPLICATION FORM
As provided in section 1603( a) and Government Code section 15606( d), the State Board of
Equalization prescribes the assessment appeal application form. Currently, this form is titled
Application for Changed Assessment, form BOE- 305- AH. Counties must provide this form free
of charge to applicants. 54
Individual counties may, to some extent, modify this form to meet local processing needs, but
any proposed modifications must be submitted to the State Board of Equalization for prior
approval. Counties may not change the numbering of any item on the Application, nor may they
remove any wording from the form or its instructions unless such language is optional.
An assessment appeal in the form of a letter received during the application period may be
treated as a timely filed, but incomplete, application if addressed to, mailed to, and received by
the clerk of the board. If so, the clerk of the board should provide the applicant with the
prescribed form and allow a reasonable time in which to complete and return the form. Also, a
facsimile application may be accepted as timely filed unless specifically prohibited by local
rules. Acceptance of facsimile filing may be subject to certain conditions set forth in local rules.
In addition, an appeal filed on another county's version of the Application form may be accepted
by the clerk of the board, if filed in a timely manner. If accepted, the clerk should then require
that the taxpayer complete the proper Application form for the county where the property is
located.
FILING THE APPLICATION FORM
To be considered valid, an Application for Changed Assessment must contain all of the following
information and must be filed during the appropriate filing period.
REQUIRED INFORMATION
Applicants or their agents will furnish the following information on the Application for Changed
Assessment: 55
1. The name and mailing address of the applicant. Agents may not furnish their own
mailing address in place of an applicant's actual mailing address.
54 Rule 305, subsection ( c).
55 Rule 305.
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2. The name and mailing address of the applicant's agent, if any. NOTE: If the application
is filed by an agent, other than a California- licensed attorney authorized by the applicant
to file the application, written authorization of agency, signed by the person affected,
must be included on or attached to the application form ( see also section on Application
by Agent following in this chapter).
3. A description of the property which is the subject of the application sufficient to identify
it on the assessment roll.
4. The applicant's opinion of the value of the property on the valuation date of the
assessment year in issue.
5. The roll value on which the assessment of the property was based.
6. The facts relied upon to support the applicant's claim that the board should order a change
in the assessed value or classification of the property.
7. Signatures ( see section on Signature following in this chapter).
An application that does not show the above items is invalid and should not be accepted by the
board. Conversely, an application which shows the foregoing items is valid and no additional
information is required of the applicant on the application form. If an applicant files an
incomplete application, the clerk of the board will allow an applicant additional time to provide
the required information. Board clerks should provide prompt notice to an applicant that an
application is incomplete and therefore invalid. 56
APPLICANT'S CERTIFICATION
Pursuant to section 1603( f), the application form must contain the following certification by the
applicant ( or agent):
I certify ( or declare) under penalty of perjury under the laws of the State of
California that the foregoing and all information hereon, including any
accompanying statements or documents, is true, correct, and complete to the best
of my knowledge and belief and that I am ( 1) the owner of the property or the
person affected ( i. e., a person having a direct economic interest in the payment of
the taxes on that property – " The Applicant,") ( 2) an agent authorized by the
applicant under Item 2 of this application, or ( 3) an attorney licensed to practice
law in the State of California, State Bar No. ______, who has been retained by the
applicant and has been authorized by that person to file this application.
This statement provides a certification by the applicant ( or agent) that the information contained
on the form is accurate and complete. This exact language is required by the statute and may not
be changed by a county.
56 Rule 305, subsection ( c)( 4).
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SIGNATURE
In order for an application to be considered valid and complete, all of the information on the
application must be verified by the applicant or the applicant's agent under penalty of perjury. 57
Thus, the original or digital signature of the applicant or the applicant's agent must appear on the
application as required; a photocopied or rubber- stamped signature is not acceptable.
Government Code section 16.5 authorizes the use of and prescribes guidelines for digital
signatures ( electronic signatures). A digital signature means an electronic identifier, created by
computer, intended by the party using it to have the same force and effect as the use of a manual
signature. 58 Section 16.5 provides in part:
( a) In any written communication with a public entity, as defined in
Section 811.2, in which a signature is required or used, any party to the
communication may affix a signature by use of a digital signature that complies
with the requirements of this section. The use of a digital signature shall have the
same force and effect as the use of a manual signature if and only if it embodies
all of the following attributes:
( 1) It is unique to the person using it.
( 2) It is capable of verification.
( 3) It is under the sole control of the person using it.
( 4) It is linked to data in such a manner that if the data are changed, the digital
signature is invalidated.
( 5) It conforms to regulations adopted by the Secretary of State…. 59
Clerks of appeals boards have discretion in applying the signature requirements of section 1603
and Rule 305. If the clerk believes an electronic filing and digital signature are sufficient to
reflect compliance with the statute and rule, then the filing may be accepted as valid.
WHO MAY FILE AN ASSESSMENT APPEAL APPLICATION
An assessment appeal application may be filed by the property owner or the owner's spouse,
parents or child, 60 or any other person affected; this person becomes the applicant. An
application may also be filed by an authorized agent. 61
57 Rule 305, subsection ( b).
58 Government Code section 16.5, subdivision ( d).
59 California Code of Regulations, Title 2, Chapter 10, Sections 22000 through 22005.
60 Rule 305, subsection ( a).
61 Ibid.
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Rule 305 states:
( a)( 1) An application is filed by a person affected or the person's agent, or a
relative mentioned in regulation 317 of this division. If the application is made by
an agent, other than an authorized attorney licensed to practice in this state who
has been retained and authorized by the applicant to file the application, written
authorization to so act must be filed with the application…
( 3) If the applicant is a corporation, limited partnership, or a limited liability
company, the agent authorization must be signed by an officer or authorized
employee of the business entity.
APPLICATION BY PERSON AFFECTED
Person affected is not limited to a property owner or the person who paid the property taxes.
Any person having a direct economic interest in the payment of the property taxes is a person
affected for purposes of filing an assessment appeal. 62
For example, a lease of commercial property requires that the tenant pay the property taxes for
that property during the term of the lease. In this case, the lessee, as the person contractually
responsible for payment, and the lessor, as the owner of property against which the tax becomes
a lien, have a direct economic interest in the payment of those taxes. For purposes of filing an
assessment appeal, the lessee or the lessor is a person affected.
Person affected does not, however, include all holders of leasehold interests. In the example of
an apartment building where the tenants do not directly pay the property taxes, they do not have
a direct economic interest and, therefore, are not persons affected.
A property owner who acquires an ownership interest after the lien date is a person affected
because such an owner is responsible for payment of the property taxes and, thus, has a direct
economic interest. 63
APPLICATION BY AGENT
If an assessment appeal application is filed by an agent— other than a California- licensed
attorney authorized by the applicant to file the application— written authorization of agency,
signed by the person affected, must be included on or with the application form ( see also section
Exclusions to Who May File following in this chapter).
The Application for Changed Assessment form prescribed by the State Board of Equalization has
an area designated for the agent's authorization. If an agent ( other than a California- licensed
attorney) is filing an application on behalf of an eligible applicant, this section of the form must
be completed and signed by the applicant, or an agent authorization may be attached to the
62 Section 1603, subdivision ( f); Rule 301, subsection ( g).
63 53 Ops. Cal. Atty. Gen. 328 ( 1970); Rule 301, subsection ( g).
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application, 64 before the application may be accepted as complete and valid by the clerk of the
board. If the applicant elects to attach an agent authorization to the application, the attached
authorization will include the following:
· The date the authorization statement is executed;
· A statement to the effect that the agent is authorized to sign and file applications in the
specific calendar year in which the application is filed;
· The specific parcel( s) or assessment( s) covered by the authorization, or a statement that
the agent is authorized to represent the applicant on all parcels and assessments located in
the specific county;
· The name, address, and telephone number of the specific agent who is authorized to
represent the applicant; the agent may be either a named individual or a firm or agency
representing the applicant;
· The applicant's signature and title;
· A statement that the agent will provide the applicant with a copy of the application.
If a photocopy of the original authorization is attached to the application, the appeals board may
require the agent to submit an original signed authorization. An agent must have authorization to
file an application at the time the application is filed; retroactive authorizations are not permitted.
The applicant should promptly notify the clerk of the board in writing when a new agent has
been substituted for the current agent.
APPLICATION BY A RELATIVE
Rule 317 lists the family members who may appear at an assessment appeals hearing to represent
a relative. Rule 317, subsection( e), states:
A husband may appear for his wife, or a wife for her husband, and sons or
daughters for parents or vice versa.
When any of the individuals listed above file an Application for Changed Assessment and sign
the application in place of the eligible relative, they become the applicant for purposes of the
hearing.
APPLICATION BY A BUSINESS ENTITY
If the applicant is a corporation, limited partnership, or a limited liability company, the
application may be signed by an officer or authorized employee of the business entity. 65 The
term officer of the corporation refers to one who has been elected, or whose office is provided
for by the articles of incorporation or the by- laws. 66 More specifically, section 312 of the
64 Rule 305, subsection ( a).
65 Rule 305, subsection ( a)( 3).
66 E. Clemens Horst Co. v. Industrial Accident Commission ( 1920) 184 C 180.
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Corporations Code enumerates those officers required of a corporation as " a chairman of the
board or a president or both, a secretary, a chief financial officer…." In addition to the required
officers, a corporation may provide for other officers as necessary to carry out its business.
APPLICATION BY AN ATTORNEY
A party affected or his or her agent, as used in section 1603( a), does not include an attorney who
files an assessment appeal application without prior direct authorization from the person
affected. An application, signed and filed by an attorney, is valid only if the attorney has been
directly retained by the applicant and authorized by that person to file an assessment appeal
application. By signing an application, an attorney acknowledges that he or she has been
retained and authorized as stated in the certification required by section 1603( f).
ASSESSMENT APPEALS FILING PERIODS
To be considered valid, an application must be filed with the clerk of the board during the
appropriate filing period. Applications must not be submitted directly to the assessor's office for
initial review and processing. The appeals board is an independent entity whose function is to
resolve disputes between the assessor and taxpayers and a conflict of interest may result if the
assessor's office takes an active role in the processing of applications.
An application which is not filed within the appropriate filing period must be rejected as
untimely, and in such circumstances, an appeals board has no jurisdiction or authority over the
matter except to deny the application for untimeliness. Assessment appeals filing periods are
established by statute and vary according to the type of assessment under appeal.
REGULAR FILING PERIOD
Time periods for filing an application for the regular period are set forth in section 1603 which
provides in part:
( b)( 1) The application shall be filed within the time period from July 2 to
September 15, inclusive. An application that is mailed and postmarked
September 15 or earlier within that period shall be deemed to have been filed
within the time period beginning July 2 and continuing through and including
September 15…
( 3) Notwithstanding paragraph ( 1), the last day of the filing period shall be
extended to November 30 in the case of an assessee or party affected with respect
to all property located in a county where the county assessor does not provide, by
August 1, a notice, as described in Section 619, to all assessees of real property on
the local secured roll of the assessed value of their real property as it shall appear
or does appear on the completed local roll, including the annual increases in
assessed value caused solely by increases in the valuation of property that reflect
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the inflation rate, not to exceed 2 percent, pursuant to the authority of
subdivision ( b) of Section 2 of Article XIII A of the California Constitution…
( B) The clerk shall certify the last day of the filing period and shall immediately
notify the State Board of Equalization as to whether the last day of the filing
period for the county will be September 15 or November 30.
( 4) If a final filing date specified in this subdivision falls on Saturday, Sunday, or
a legal holiday, an application that is mailed and postmarked on the next business
day shall be deemed to have been filed within the requisite time period specified
in this subdivision. If on any final filing date specified in this subdivision, the
county's offices are closed for business prior to 5 p. m. or for that entire day, that
day shall be considered a legal holiday for purposes of this section….
During the July 2 to September 15 ( or November 30 as applicable) filing period, applications
may include but are not necessarily limited to:
· Decline in value appeals
· Base year value appeals
· Personal property appeals
· Appeals of penalty assessments
· Appeals of exempt value allocations
There are two exceptions to the regular filing period described above. The first exception, set
forth in section 1603, subdivision ( b)( 2), specifies:
Notwithstanding paragraph ( 1), if the taxpayer does not receive the notice of
assessment described in Section 619 at least 15 calendar days prior to the deadline
to file the application described in this subdivision, the party affected, or his or
her agent, may file an application within 60 days of receipt of the notice of
assessment or within 60 days of the mailing of the tax bill, whichever is earlier,
along with an affidavit declaring under penalty of perjury that the notice was not
timely received.
Section 619 requires notification of increases in the assessed value of real property but does not
apply to increases resulting solely from the application of the inflation factor as an annual
adjustment to a previously established base year value.
The second exception to the regular filing period, set forth in section 1603, subdivision ( c),
provides:
The application may be filed within 12 months following the month in which the
assessee is notified of the assessment, if the party affected or his or her agent and
the assessor stipulate that there is an error in the assessment as the result of the
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exercise of the assessor's judgment in determining the full cash value of the
property and a written stipulation as to the full cash value and assessed value is
filed in accordance with Section 1607.
If the applicant ( or agent) and the assessor stipulate that there was an error in the assessment
under specified conditions, the two parties must submit a written stipulation to the appeals board
as to the full value and assessed value of the property and set forth the facts upon which the
reduction in value is premised. The board may accept the stipulated value, or may reject the
stipulated value and set the application for a hearing.
FILING PERIOD FOR SUPPLEMENTAL AND ESCAPE ASSESSMENTS AND ROLL
CORRECTIONS
Section 1605 provides a separate filing period for assessments made outside the regular
assessment period ( i. e., supplemental assessments, escape assessments, and roll corrections)
during which an application must be filed with the clerk. This filing period is linked to the date
of mailing of the assessment notice or tax bill, depending upon an action taken by the board of
supervisors pursuant to subdivision ( c) of section 1605:
1. In the County of Los Angeles, 67 or in any county in which the board of supervisors has
adopted a resolution pursuant to subdivision ( c) of section 1605, an application must be
filed within 60 days of the date of mailing printed on the tax bill, or the postmark,
whichever is later.
2. In all other counties, an application must be filed within 60 days of the date of mailing
printed on the notice of assessment, or the postmark, whichever is later.
The assessor may file a motion with the appeals board for a hearing on the issue of the timeliness
of an application.
Under certain circumstances, an application may be filed based on the written audit results
following an audit conducted by the assessor. 68 For applications filed following an audit where
the assessor elects not to enroll a discovered escape assessment, or when the escape assessment
is enrolled but offset pursuant to section 533, the filing must occur within 60 days after receipt of
the written audit results.
An Application for Changed Assessment must be filed within 60 days of the assessee's
notification of the assessment. In counties where the board of supervisors has adopted the
resolution described in subdivision ( c) of section 1605, this deadline may occur 60 days after the
date of mailing printed on the tax bill reflecting the assessment appealed, or the postmark date,
whichever is later.
67 The filing period in Los Angeles County is determined by statute in paragraph ( 2) of subdivision ( b) of section
1605. All other counties may establish the date of mailing of the tax bill as the pivotal date for such appeals by
resolution of the board of supervisors.
68 Rule 305.3, subsection ( d).
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EXTENSION FOR SUPPLEMENTAL ASSESSMENTS
Section 75.31 extends the 60- day filing period only for supplemental assessments if the applicant
and assessor stipulate to a reduction. Subdivision ( c)( 3)( B) provides, in relevant part:
… an application for reduction in a supplemental assessment may be filed within
12 months following the month in which the assessee is notified of that
assessment, if the affected party or his or her agent and the assessor stipulate that
there is an error in assessment as the result of the exercise of the assessor's
judgment in determining the full cash value of the property and a written
stipulation as to the full cash value and the assessed value is filed in accordance
with Section 1607.
As provided in section 1607, the board may accept the stipulated value, or may reject the
stipulated value and set the application for a hearing.
DECLINE IN VALUE FILING PERIOD
When the fair market value of a property declines below its assessed value on the assessment
roll, the property must be revalued and reassessed in accordance with section 51 as of the
January 1 lien date. An appeal based on this issue is sometimes called a Proposition 8 or
Decline in Value appeal. Normally, decline in value applications must be filed between July 2
and September 15 to appeal the assessed value enrolled for the preceding January 1 lien date, or
between July 2 and November 30 when the assessor does not send notices of assessed value as
specified in section 1603.
Example
The assessor has provided all taxpayers with real property on the secured roll with a notice of
assessed value prior to August 1. A taxpayer receives a notice of assessed value for her single-family
dwelling from the assessor. She believes that her home is worth less than the $ 250,000
assessment for the current roll year. To appeal this property's assessed value, the owner ( or
agent) must file an Application for Changed Assessment between July 2 and September 15 of the
current roll year.
Under very limited conditions, some counties may permit applicants to file decline in value
applications after September 15. In those cases, extension of the deadline can occur when the
county has enacted an ordinance allowing property owners to file an Informal Assessment
Review form. 69
BASE YEAR VALUE FILING PERIOD
Applicants who want to appeal a property's base year value have two filing periods:
1. Filing based upon the supplemental assessment notice ( 60- day filing period)— An
applicant may file an application within 60 days after the date of mailing printed on the
69 Section 1603, subdivision ( d).
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supplemental assessment notice, or the postmark date, whichever is later; or, in some
counties, within 60 days of the date of mailing printed on the supplemental tax bill, or the
postmark date, whichever is later. An application will appeal the change in ownership or
new construction determination and/ or appeal the supplemental assessment and request a
reduction in the base year value established by the assessor for the change in ownership
or new construction event that triggered the supplemental assessment. 70
2. Regular filing period
a. Filing July 2 – September 15 for the new base year value during the first year of
enrollment on the current local roll, not on the supplemental roll, or three
succeeding years when a notice of assessed value is mailed pursuant to section
1603— If the applicant misses the 60- day supplemental assessment filing period, the new
base year value may be appealed during the regular filing period in the year that the base
year value is enrolled by the assessor or the three following years. If the appeals board
reduces the base year value, the reduction is effective in the year in which the application
was filed and any future years, but is not retroactive. 71
Example
On August 15, 1999 a limited partnership buys a large warehouse facility in an
industrial park. The assessor determines that the purchase constituted a change in
ownership. On October 3, 1999, the assessor mails the notice of supplemental
assessment required under section 75.31. In most counties, the owner has 60 days
from October 3, 1999 to file an application appealing the supplemental assessment.
Should the property owner miss the 60- day deadline, he or she may file a base year
value appeal during the following regular filing periods:
· July 2, 2000 — September 15, 2000
· July 2, 2001 — September 15, 2001
· July 2, 2002 — September 15, 2002
· July 2, 2003 — September 15, 2003
Assume the property owner files an application contesting the base year value on
July 5, 2001. If the appeals board grants the application and reduces the base year
value, the reduction would apply for the 2001- 2002 tax year and any future years. It
would not affect either the supplemental assessment or the assessed value for the
2000- 2001 tax year.
b. Filing July 2 – November 30 for the new base year value during the first year of
enrollment on the current local roll, not on the supplemental roll, or the three
succeeding years when a notice of assessed value is not mailed pursuant to
70 Section 1605.
71 Section 80( a)( 5); Rule 305.5.
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section 1603 ¾ The regular filing period is extended to November 30 for base year value
appeals in the first year and the three succeeding years when the assessor does not
provide, by August 1, notices to assessees of the assessed value of their real property as it
will appear, or does appear, on the secured roll.
3. Erroneous change in ownership filing period ¾ Filing July 2 – September 15 or
November 30 based on erroneous change in ownership determination by the
assessor ¾ An applicant may file an application to correct a base year value resulting
from an erroneous change in ownership determination, not involving an assessor's
judgment of value, if the assessor declines to make the correction pursuant to
section 51.5. Such an application must be filed during the regular filing period July 2
through September 15 or November 30, whichever is applicable. When such an
application has been filed, the board must first determine that the information presented
to the assessor is credible evidence of an error not involving the assessor's value
judgment. For example, an applicant might produce a marriage certificate as evidence
that a transfer which resulted in a change in ownership should actually have received the
interspousal exclusion. Because the error will necessarily involve a factual dispute, an
applicant must have some evidentiary basis, as opposed to an opinion, for any such
claim. 72
CALAMITY REASSESSMENT FILING PERIOD
If the assessor has reassessed a property following a misfortune or calamity, applicants must file
an application to protest the reassessed value within six months from the date of mailing of the
reassessment notice. 73
72 Sunrise Retirement Villa v. Dear ( 1997) 58 Cal. App. 4th 948.
73 Section 170, subdivision ( c).
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TABLE 3
APPLICATION FILING PERIODS
Reason for the Appeal Filing Period
Decline in Value Appeals
Personal Property Assessments
Business Property Assessments
Appeals of Exempt Value Allocations
During the regular assessment period from July 2
through September 15 following the January 1 lien date
when a notice of assessed value is mailed by August 1
pursuant to section 1603.
or
During the regular assessment period from July 2
through November 30 following the January 1 lien date
when no notice of assessed value is mailed pursuant to
section 1603.
Supplemental Assessments
Escape Assessments ( including those
made as the result of sections 469
and 470 audits)
No later than 60 days after date of notice or date of
mailing of the tax bill, or the postmark date, whichever
is later ( section 1605).
Extension of filing period for supplemental assessment
only; within 12 months following the month in which
the assessee is notified, if the party affected or his or her
agent and the assessor stipulate that there is an error in
the assessment as the result of the exercise of the
assessor's judgment in determining the full cash value of
the property and a written stipulation as to the full cash
value and assessed value of the property is filed in
accordance with section 1607.
Base Year Value Appeals 1. Within 60 days after notice of supplemental
assessment or mailing date of tax bill, or the
postmark date, whichever is later.
2. If outside supplemental assessment filing period,
then during regular filing period in the year that the
base year value is enrolled or in the three following
years.
3. During the regular filing period any time after the
time period specified in ( 1) or ( 2) if the applicant
claims that an erroneous change in ownership
determination occurred, which error did not involve
an assessor's exercise of value judgment.
Calamity Reassessments
( if section 170 ordinance enacted)
Six months from the mailing date of the reassessment
notice.
Penalty Assessments If imposed concurrent with an assessment, then during
the period the assessment may be appealed. If not
imposed concurrent with an assessment, then within 60
days after notice of penalty assessment.
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PROOF OF FILING DATE
Under normal circumstances, an application mailed with a postmark on or before the final filing
date established by statute will be deemed to be timely filed.
Section 166 states:
( a) Whenever a taxpayer is required to file any statement, affidavit, application,
or any other paper or document with a taxing agency by a specified time on a
specified date, such filing shall be deemed to be within the specified period if it is
sent by United States mail, properly addressed with postage prepaid, and bears a
post office cancellation mark of the specified date, or earlier within the specified
period, stamped on the envelope, or on itself, or if proof satisfactory to the agency
establishes that the mailing occurred on the specified date, or earlier within the
specified period.
An application filed by mail that bears both a private business postage meter postmark date and a
U. S. Postal Service postmark date will be deemed to have been filed on the date that is the same
as the U. S. Postal Service postmark date, even if the private business postage meter date is the
earlier of the two postmark dates. 74
Although most applications will be received timely by the clerk of the board, some may not.
With respect to an applicant who states that he or she mailed an application on or before the
filing date, but the clerk has no record of receiving such an application, section 166 requires that
the applicant provide a statement or affidavit asserting a timely filing within one year of the
deadline applicable to the original filing:
( d) Any statement or affidavit made by a taxpayer asserting such a timely filing
must be made within one year of the deadline applicable to the original filing;
provided, however, that this subsection shall not apply to any statement or
affidavit asserting the timely filing of a property statement or to any statement
made by the taxpayer in connection with an escape assessment imposed pursuant
to Section 531.
Section 166 indicates that statements or affidavits may constitute proof of filing, but whether a
statement or affidavit alone is sufficient proof in a given situation is a matter for the appeals
board to decide. In addition to the statements or affidavits, the clerk of the board should evaluate
all relevant evidence which might or might not support the contention that an application was
filed timely.
74 Rule 305, subsection ( d)( 5).
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APPLICATION TIMELY FILED IN WRONG COUNTY
Subdivision ( e) of section 166 expresses the Legislature's intent that its provisions are to be
" liberally construed in favor of the taxpayer." Consistent with that intent, a timely filed
application unintentionally filed with the appeals board of another county may be deemed to be
filed within the specified filing period. Upon being notified that an application has been timely
filed but mailed to the wrong county appeals board office, the clerk of the proper county's
appeals board should take reasonable steps to reinstate the application. The date of receipt by the
proper county in which the application should have been filed should be the date used as the
commencement of the two- year statute.
AMENDING AND CORRECTING ASSESSMENT APPEAL APPLICATIONS
Rule 305, subsection ( e), provides the parameters for correcting and amending an application.
An applicant ( or agent) has the right to amend an application anytime until 5: 00 p. m. on the last
day upon which the application might have been timely filed; e. g., until 5: 00 p. m. on
September 15 for applications filed during the regular filing period, or until 5: 00 p. m. on
November 30 when the county assessor does not send value notices pursuant to section 1603 by
August 1.
After the applicable filing period has expired, the following limitations apply:
· An application may be corrected by the applicant following notification by the clerk of a
deficiency in the original application.
· An application may be amended by the applicant provided that the effect of the
amendment is not to request relief additional to or different in nature from that originally
requested.
· An application may be amended, at the discretion of an appeals board, if requested in
writing by the applicant and filed with the clerk of the board prior to any scheduled
hearing, or an amendment may be requested orally at the hearing. An appeals board may
allow an amendment that states additional facts claimed to require a reduction of the
assessment that is the subject of the application. For example, an appeals board has the
authority to grant a request to amend an application from an appeal of a decline in value
for a specified lien date to an appeal of the base year value as of that lien date, providing
the property is still eligible for equalization pursuant to section 80. A base year
application may be filed during the first year of enrollment on the current local roll, not
on the supplemental roll, or during the three succeeding years.
However, no request to amend an application may be granted after the conclusion of the hearing,
even if the final determination is deferred until a later date following deliberation. 75
75 Rule 305( e)( 2).
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As a condition to granting a request to amend an application, an appeals board may require the
applicant to sign a written agreement extending the two- year period provided in section 1604
( see section on Continuance in Chapter 8).
An applicant may revise the opinion of value stated on the application at any time up to and
during the assessment appeals hearing. In addition, the applicant may present testimony and
other evidence at the hearing to support a full value that may be different from the opinion of
value stated on the application. The presentation of such testimony or other evidence will not be
considered an amendment to the application. 76
WITHDRAWAL OF AN APPLICATION
Generally, an applicant can withdraw an application at any time prior to a hearing. In some
counties, however, if the assessor has indicated that evidence to support a higher value will be
introduced at the hearing, the applicant will not be allowed to withdraw the application without
the concurrence of the assessor.
If an applicant withdraws an application that has also been designated as a claim for refund, the
applicant should be advised that withdrawal of the application will also constitute withdrawal of
the claim for refund.
RETENTION OF RECORDS
The clerk is responsible for maintaining the records of all appeals hearings held with a hearing
officer or before appeals boards, including evidence presented during the hearings. The clerk
may destroy records consisting of assessment appeal applications when five years have elapsed
since the final action on the application. The records may be destroyed three years after the final
action on the application if the records have been microfilmed, microfiched, imaged, or
otherwise preserved on a medium that provides access to the documents. 77
76 Rule 305, subsection ( e).
77 Government Code section 25105.5; Rule 305, subsection ( g).
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CHAPTER 4: BEFORE THE HEARING
Once an application is received by the clerk of the appeals board, the clerk reviews it for
adequacy, and, if valid, schedules it for hearing and sends notice to the parties. The parties are
each responsible for obtaining relevant evidence for presentation and, if necessary, competent
witnesses to testify at the hearing. Appeals board members are responsible for making
themselves aware of circumstances in which their impartiality might be called into question and
the integrity of the appeals process compromised. Under such circumstances, a board member
has an affirmative duty to disqualify himself or herself.
SCHEDULING HEARINGS
All applications will be filed with the clerk of the board who, in accordance with specific
guidelines established by the board of supervisors and/ or the State Board of Equalization, is
responsible for validating the timeliness and completeness of all applications. 78 If the clerk
determines that an application is incomplete, the applicant must be promptly notified, 79 and the
applicant should be allowed a reasonable period of time in which to submit the required
information. If an application is denied as untimely, or the board denies jurisdiction for any
other reason, the applicant should be sent notice stating the reasons for the denial and informing
the applicant of the right to request that the board schedule a hearing to review the denial. 80
When a timely valid application has been formally filed, the clerk must set the application for
hearing. Coordination with the assessor's staff is essential because they can usually facilitate
scheduling by categorizing and grouping applications by those that involve relatively
straightforward assessments requiring little preparation time; those that are more complicated
and require more preparation time; and those that will require an audit of the taxpayer's records
prior to the hearing. In addition, staffing and workload levels within the assessor's office will
also impact preparation times and may be a scheduling consideration. Although it may be
administratively infeasible to coordinate with all applicants prior to scheduling hearings, the
clerk should try to coordinate with applicants when scheduling the more complex appeals.
Occasionally, the applicant or the assessor will request that a hearing be rescheduled within a
few weeks, or even days, of the hearing date. Usually this will occur when an unforeseen
occurrence arises, such as illness affecting the assessor or applicant, the agent, or a material
witness. The board should allow either the applicant or the assessor to make such requests in
writing, explaining the need for rescheduling the hearing.
78 Midstate Theatres, Inc. v. Board of Supervisors ( 1975) 46 Cal. App. 3d 204.
79 Rule 305, subsection ( c)( 4).
80 Rule 309, subsection ( e).
Chapter 4
Assessment Appeals Manual 37 May 2003
Rule 323 contains the provisions for hearing postponements. Rule 323, subsection ( a), states in
part:
The applicant and/ or the assessor shall be allowed one postponement as a matter
of right, the request for which must be made not later than 21 days before the
hearing is scheduled to commence. If the applicant requests a postponement as a
matter of right within 120 days of the expiration of the two- year limitation period
provided in section 1604 of the Revenue and Taxation Code, the postponement
shall be contingent upon the applicant's written agreement to extend and toll
indefinitely the two- year period subject to termination of the agreement by
120 days written notice by the applicant. The assessor is not entitled to a
postponement as a matter of right if the request is made within 120 days of the
expiration of the two- year period, but the board, in its discretion, may grant such a
request. Any subsequent requests for a postponement must be made in writing,
and good cause must be shown for the proposed postponement. A stipulation by
an applicant and the assessor shall be deemed to constitute good cause, but shall
result in extending and tolling indefinitely the two- year limitation period subject
to termination of the agreement by 120 days written notice by the applicant….
While a clerk may, for the sake of administrative convenience and efficiency, consider the
scheduling preferences of the assessor's office, it remains the clerk's responsibility to confirm
validity of applications and to make final scheduling decisions.
MULTIPLE ISSUES
When multiple applications are filed for a single property, e. g., for several different tax years,
then, whenever possible, the clerk should consolidate the applications into one hearing. This
consolidation generally results in greater convenience for the taxpayer, the assessor, and the
appeals board. Rule 305, subsection ( h), provides:
The board, on its own motion or on a timely request of the applicant