California Homeowners Can Reduce Their Property Taxes

California Homeowners are Being Over-taxed

Due to recent decline in real estate value, California homeowners are paying hundreds or thousands of dollars extra in property taxes. Homes bought between 2004-2007 are most likely to be effected by this problem. If you purchased your home within the last four years, you are probably paying more property taxes than you should, based on your original purchase price. Now's the time to file an appeal to the Clerk of the Board to reduce your yearly property taxes.
Your Taxes Do Not Automatically Decrease

As property taxes decline, your taxes do not automatically decrease. It is the responsibility of the homeowner to file an assessment appeal to the Clerk of the Board to readjust your yearly taxes accordingly. The deadline to file appeals is usually 30-60 days after you receive your property tax notice from the assessor's office. Appealing early, ensures that your application is received on time and increases your chances of getting approved for a tax reduction. Although the County Assessor's Office is promising tax reductions to 128,000 homeowners, greater tax reductions can be granted to homeowners who individually file their own re-assessment appeals to the Clerk of the Board. Here's why? The County Assessor's Office only gives a limited tax reduction ranging from $200-$600 becauuse it assesses your property, rather than appraise it. This assessment is based on a national average, but the value of homes in some neighborhoods have declined by more than 50%; homeowners in these neighborhoods should recieve more in tax reductions. If you hire an expert to file the appeals application for you for a reasonable amount of money, this is the best way to go. These experts are real estate appraisers who know how to evaluate and compare the final sales in the immediate neighborhood with an unbiased opinion. I recommend Pacific Coast Securities, an Orange County- based tax reduction company to file the application for you. I've searched around and this company is the cheapest, charging only $79 for their services. Visit their website at pcsappeals.com.
The Appeals Process Can Be Difficult

When filing an appeal, the homeowner needs to know a great deal about the current market conditions, the value of his or her property and extensive knowledge of comparable properties. This information serves as evidence that you are being over-taxed. Filing the appeals application on your own can cause your application to be denied and force you to pay higher property taxes than you should. The No.1 reason County Assessors deny appeals applications for re-assessment and summon homeowners to court hearings is because applications not completed by professional real estate appraisers often contain mistakes and inaccurate market information.
You're Not Alone

Real estate appraisers and attorney can help you file your appeal application to make sure you are approved. However, there are companies that are charging up to 50% of your savings to file the application which can average to as little as $1000. A company that I used this year to reduce my property taxes is Pacific Coast Securities, The Tax Reduction Specialists. They were very affordable and efficient. They only asked for a one time fee of $79 to file the application. I saved about $1300 in property taxes with their company.
Their website address is http://www.pcsappeals.com
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The Role Of The Property Tax Consultant In Litigation

In the event that a valuation settlement cannot be reached during the administrative remedy, the property owner and/or manager often ask for recommendations regarding possible litigation from their property tax consultant. Since litigation support is a large practice area in the property tax consultant industry, consultants play various roles. These roles can range from passive to intricate participation during the litigation process. The absolute least agent participation level should include advising the client that an ARB order has been issued and the deadline for filing appeals.

In both scenarios, the consultant handles the property tax appeal through the administrative remedy, which includes protecting the taxpayer's rights and providing remedies available in the Texas Property Tax Code. In a passive role, the consultant's participation typically ends with issuance of the Appraisal Review Board's (ARB) Notice Of Final Order. At this point the property owner assumes the responsibility of appealing a protest provided by Subchapter C of Chapter 41, Section 25.25 or Subchapter B, Chapter 24. The taxpayer will retain legal representation and expert witnesses necessary to proceed with their litigation.

In the latter case the owner will rely on the consultant to become part of the litigation team, typically made up of an expert witness, attorney and the consultant. Each team member has a fiduciary relationship with the property owner and this must be understood and kept in mind. The members of the litigation team bring different areas of expertise, which are needed in order to bring a successful conclusion to a property tax lawsuit. For example, a real estate appraiser might be designated as the expert witness. In addition to preparing a market value appraisal, fair and equitable study and giving testimony, the appraiser may be asked to provide additional services, including: [1]

1. Advising an attorney on matters of standards of practice, professional code of ethics, market data sources, and industry trends

2. Helping frame questions for appraisal experts on either side of the case at depositions and during trial testimony

3. Case management

Additionally, the appraiser can also be utilized to identify incorrect methodology, inaccurate data, and an inaccurate application used by appraisal districts.

The attorney is the captain of the litigation team and his fiduciary relationship with the property owner trumps all other activity involved in the litigation. The relationship with all other team members is secondary to that of the relationship between the attorney and the property owner. Further, other team members must be aware not to engage in any activity that constitutes the unauthorized practice of law. Once litigation has been filed, the property owner will become the Plaintiff and will be the direct client of the attorney. The agent is not the attorney's client. Thus, communications between an attorney and the tax agent may or may not be confidential and may be discoverable. Privileged communications should most often be directly between the owner and attorney.

The attorney's role includes counseling the property owner on the feasibility of litigation, defining and explaining the taxpayer's rights, disputed facts, and remedies. Generally, the litigation process includes the filing of the petition, discovery of the facts (informal and formal interrogatories, requests for production, depositions, disclosure of experts, requests for admissions, etc.), motions to the court, pretrial proceedings such as case management conferences, settlement conferences, referral to mediation or arbitration, preliminary motions to allow or exclude evidence at trial, pretrial briefs, trial preparation, jury selection and instructions, trial by judge or jury, post-trial motions, and appeal of the judgment.

Consultants who participate in litigation support can be divided into two categories; involved and heavily involved. The consultant that falls in the first category will generally work as a conduit of information between the owner and the attorney. For example, the consultant would forward the attorney copies of evidence used during the administrative process, Notices of Final Order, and other general information.

[1] As defined in The Appraisal of Real Estate, Twelfth Edition
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Do You Really Need a Tax Attorney?

You may find yourself in the position of believing you need a tax attorney. Depending upon your situation, this can be beneficial to you. If you have some facts, it can help you to decide if this is your best option.

One instance in which a tax attorney is your best option is if you have not kept your tax payments up-to-date. Whether this is due to simple lack of adequate knowledge about your tax obligations, or from neglect, you may find yourself in the position of either knowing or assuming that you owe taxes which you have not paid. Personal problems, business upheavals, and other factors occasionally figure in to many people not paying their taxes on time. Tax issues can also be a problem for those who have recently changed their filing status, or for those who are dealing with business taxes.

If you owe back taxes, a tax attorney can help you. This kind of help does not relieve you of your financial obligations; instead, it makes your obligations clear to you, and gives you the information you need to meet your obligations. A tax attorney can help you with the necessary paperwork, figuring how much tax and possible penalty fees you owe, and the most reasonable method and schedule for making your payments.

A tax attorney can also help if there has been a discrepancy with various aspects of your taxes. For example, if your tax return was not completed correctly, resulting in overpayments or making a smaller payment than you should have made, a tax attorney can assist in correcting the information and dealing with your payment status.

If you have decided that you need the services of a tax attorney, it is essential that you find one who is qualified. While you may be tempted to take shortcuts in order to save money, in the longrun you will be saving not only money but time and unnecessary stress if the tax attorney you choose is qualified and experienced. When you are in the market for a tax attorney, it is in your best interest to determine in advance if he meets these standards. As some attorneys offer a free initial consultation for prospective clients, you will have the benefit of being able to request this information before you enter into an agreement to work with a particular attorney. If he or she is recommended by a previous client who was completely satisfied with the full scope of his or her services, this is also a good sign that you are dealing with an experienced, qualified professional.

Although the prospect of dealing with a tax attorney may seem intimidating, if you are facing financial or legal problems associated with your taxes it is the first and most important step in getting your tax issues resolved. In order to get the best possible results, and to avoid any unnecessary pitfalls, it is essential that you choose the tax attorney who is qualified to meet your needs. Article Source: http://www.articlesbase.com