2009/2010 Property Tax Appeals Close August 28th 2009

If you believe your home may be eligible for a reduction in property taxes based upon a decline in value, there are two ways to go about it. An informal review by the Assessor's office and/or a formal appeal with Assessment Appeals Board. The formal appeal, can be a complicated and time consuming but may be worth the effort for the savings in property taxes. Typically, the Assessor's "valuation date" is January 1, 2009 and any sales comparables submitted must have closed before March 31, 2009.

Very generally (it all depends on the neighborhood and other details), homes purchased 2006 through mid-2008 probably have the best case for property tax reduction. The less affluent areas of the city typically peaked in value around 2006 and the more affluent in 2007 - 2008. Declines from peak value generally run in the 10% to 30% range, with the less affluent southern neighborhoods being hit with the largest reductions.

If your appeal is successful, the reduction in assessed value only applies to the 7/1/09 - 6/30/10 tax year. A decline-in-market appeal is only good for 1 year, the year for which it is filed. You have to refile every subsequent year.

Informal Review
The Assessor's Office is now accepting, through 8/28/09, "Requests For Informal Review Of Assessed Value" for tax year 2009/2010. This applies only to single-family dwellings, residential condominiums, townhouses, live-work lofts and cooperative units. The SF Assessor's website offers information regarding Decline-in-Value Informal Reviews:
SF Assessor's Office Forms and FAQs


Formal Appeal
The next open formal appeal filing period for San Francisco will be July 2, 2009 to September 15, 2009 -- to appeal the 2009/2010 assessed value of your property. A formal appeal can be made for multi-unit and commercial properties, as well as for houses, condos & cooperative units.These 2 websites offer details regarding the filing of a formal appeal - the instructional videos are highly recommended for those who wish to proceed:
SF Assessment Appeals Board
Informational Videos on Property Tax Appeals


Warning on Scams
There are a number of property-tax-appeal service companies, who have been sending out their solicitations on stationery that suggests a government agency affiliation. SF Assessor-Recorder Phil Ting has stated the following:"We've received reports from dozens of taxpayers who have received a letter from companies offering to facilitate the property tax reassessment for $179 [or more]. This is unnecessary and deceptive. Taxpayers can fill out a simple, one-page application for a review of their property in my office, free of charge, starting on April 15. There is no need to pay for this service." Many of the solicitations received by San Francisco homeowners may be illegal. More on this subject:
Home Reassessment Scams a

Apply for Informal Review of Assessed Value for 2009-2010 Tax Year [SFGov.org]
Peak Value vs Current SF Value Feb 2009 [SFHomeBlog]
Revised: Peak Values vs. Current SF Prices - Single Family Homes [SFHomeBlog]

Individual Tax Bills for Tenancies in Common One Step Closer

As we first reported back in September of last year (courtesy of the 'head's up' from Gordon over at Plan C), it looks as though Phil Ting from the San Francisco Real Estate Assessor office is looking to make good on his offer to help clarify the oft confusing, record keeping nightmare facing many Tenancy in Common owners come tax time.

As it stands, there is one stunning tax bill sent out to all Tenancies in Common, regardless of how many individual units exist within the TIC, or how long the TIC has been in existence. That tax bill, in it's simplest form, is split by the individual owners based on their percentage of ownership of the Tenancy in Common. The trick begins once an owner sells, or remodels - thereby triggering a reassessment (aka increase) in property taxes - the increased portion of the tax bill then becomes the responsibility of the offending owner whether they are the new kid on the block or someone looking to update.

Now, take a six unit TIC that's been around for oh, I dunno, say 10 years, which has seen several resales, a few remodels, and voila! - Dante's Hell of accounting.

To stave off any confusion, Ting plans to send out notices in July to all known Tenancies in Common, along with the yearly notice of assessed value, clarifying the city's policy on separate assessments for TICs and how to request one. It's important to note that simply getting a separate tax bill does not exclude every owner of the TIC partnership from being liable for both their share as well as the whole, in the event one owner falls behind. Thus reiterating the importance of a great TIC agreement and reserve account.

S.F. may clarify TIC units' tax liabilities [SFGate]
Calling ALL Tenancy in Common Owners [SFHomeBlog]
Mapping San Francisco's TICs [SFHomeBlog]