Editor’s Note :
Taxes shape more than returns—they affect retirement, assets, and family legacy.
Cultural Weekly launches a new Tax & Finance column featuring James Wang, former President of the North American Chinese Association of CPAs.
Every two weeks, he offers practical insights to help readers avoid risks, protect wealth, and plan ahead.
When the property tax bill arrives, many homeowners ask, “Why is it so high?” The key is not just the amount due, but whether the assessed value is fair.
If it exceeds the home’s market value on the assessment date, the owner may request a review or file an appeal.
Check Value, Then Tax
In California, a property’s base value is generally reset after a change in ownership or new construction. Under Proposition 13, it may then rise by no more than 2% a year.
If the January 1 market value falls below the Prop 13 value, the property may qualify for a temporary reduction under Proposition 8.
An appeal requires evidence—not simply a claim that the tax is too high.
Owners should show that the January 1 market value was lower, using comparable sales, photos, repair estimates, or factors such as noise, terrain and property condition.
Review Early, File Timely
Homeowners may first request an informal review from the county assessor. Orange County accepts requests from January 1 to April 30; Los Angeles County homeowners may also request a review.
An informal review does not extend the formal appeal deadline. In both counties, annual appeals must be filed from July 2 to November 30.
Los Angeles County charges a $46 filing fee, with hardship waivers available; Orange County currently charges none. Taxes must still be paid on time while an appeal is pending.
Low Purchase, High Assessment
Last April, an Orange County couple told me their son had bought a home for about $1.38 million in cash, though its estimated market value was nearly $2 million.
About three months later, the Orange County Assessor valued it at roughly $1.9 million. Unfamiliar with the appeal process, the buyer did not challenge the assessment.
This case may have appeal potential, but price alone is not decisive. If the home was openly marketed and unrelated parties negotiated independently, the sale price may strongly support market value.
Still, that presumption can be challenged. A distressed sale or unusual terms may lead the Assessor to rely on other evidence.
Owners should keep the purchase contract, listing and negotiation records, proof of payment, property-condition reports and comparable sales.
For a supplemental assessment after a change in ownership, the appeal deadline is generally 60 days from the notice date.
Do not wait for the regular filing period.
An appeal may lower, uphold or, rarely, raise the assessment. The goal is to file on time and support a fair value with solid evidence.
Parent-child transfers may also trigger Proposition 19, reassessment and income-tax basis issues.
Those rules will be covered in a future column. (Tax & Finance Column II)
Quick Guide :
- Proposition 13: Limits annual increases in assessed value.
- Proposition 8: Temporarily lowers assessed value when property values fall.
- Proposition 19: Determines whether a lower tax base can transfer to a new home or to children.
More content :
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About the Author ：
James Wang
Former President of the North America Chinese Accountants Association and Los Angeles County Assessment Appeals Board Commissioner.
With more than 40 years in practice, he specializes in tax, retirement, real estate, trusts, and wealth transfer, with broad experience in bank auditing, insurance, lending, and appraisal.