FAQs
General
California Property Tax Questions
Nevada Property Tax Questions
General
 Question: If I’ve had a recent appraisal on my property, why do I
still need to hire a property tax consultant?
Answer: Property taxes are an ad valorem tax (Latin for according to
value), and therefore, value is a critical component. An independent
appraisal can be a useful tool in challenging an assessment. However, property
taxes must be equitable to be constitutional. Accordingly, the “fair market”
value determined by a fee simple appraisal is not always the best determinant of
“taxable” value. To ensure your property taxes are fair and equitable you must
understand the revenue and taxation statutes, administrative codes, hearing
rules and procedures, as well as the general practices of the local assessing
authority. This is where the knowledge and experience of a property tax
professional from TRG is needed to guide you through the complexities of the
process in order to ensure your tax liabilities are minimized.
Question: How do I know if I my property is appropriately assessed?
Answer: There are several factors that may lead to your property being
inappropriately assessed, including factual errors, decline in market value, physical
or economic obsolescence, or inconsistency in appraisal methodologies.
TRG will provide you with a free preliminary evaluation of your property’s
assessment to determine if, in our opinion, the assessment appears to be fair
and equitable. You can contact TRG at 702-375-9249 or click here to get the
process started.
Question: I have already filed an appeal for my property. Is it
too late for TRG to represent me through the process?
Answer: TRG will review the assessment, and if it is determined the appeal
has merit, can begin representing your interest at almost any stage of the
process.
Question: What is considered personal property for local
property tax purposes?
Answer: Personal property generally includes tangible items that are not
firmly attached to land or buildings and are not specially designed for or of
such a size and bulk to be considered part of the real estate. This includes
merchandise, furnishings and effects, machinery, tools, animals and equipment.
Such personal property will be taxable unless a specific exemption provision
applies.
California Property Tax Questions
Question: Why did I receive a Supplemental Assessment and can I
challenge the assessment?
Answer: State law requires the Assessor to reappraise property
immediately upon change-in-ownership or completion of new construction. The
Assessor's Office must issue a supplemental assessment notice which reflects the
difference between the prior assessed value and the new assessment. This value
is then prorated based on the number of months remaining in the fiscal year
ending June 30th. This supplemental tax is owed in addition to the regular tax
bill. To appeal a supplemental assessment, an application must be filed with the
Clerk of the Board within 60 days from the mailing of the supplemental tax bill.
Question: Is there any reason to have TRG review my base year
value if it reflects the actual purchase price?
Answer: The simple answer is yes. There are many cases where there is
compensation in an acquisition price that is not taxable in nature or does not
reflect the unencumbered value of the asset. Sale-leasebacks, trustee’s sales,
owner financing, personal property, and above market leases are a few examples.
We recommend all base year values be reviewed and challenged, if necessary.
Question: Is there any tax relief for builders?
Answer: Yes, Section 75.12 of the California Revenue and Taxation Code
provides builders an exemption in many cases from payment of supplemental tax
bills resulting from the completion of new construction through requesting a
"Builder's Exclusion."
Effective January 1, 2006, developers of single-family subdivisions of five lots
or more are granted an automatic builder’s exclusion upon recording the
subdivision map. To be granted the builder’s exclusion on fewer than five
single-family lots or on other types of property, you must submit a letter
requesting the exclusion prior to, or within, 30 days of the start of new
construction on land development and/or improvements. The parcels for which you
are requesting an exclusion must be intended for resale, and for no other use
than that incidental to resale, such as a model home. In short, this means that
builders should submit a request for an exclusion as soon as they buy raw land
intended for development.
Contact TRG for further details and for assistance
with this process.
Question: When is business personal property appraised?
Answer: Unlike real property, business personal property is appraised
annually and is part of the unsecured roll. The owners of all businesses must
file a business property statement each year with the Assessor's Office
detailing the cost of all their supplies, equipment and fixtures at each
location. TRG can assist you with the annual filings, audits and appeals. TRG
can minimize your personal property tax liability though auditing your rendition
and reclassifying or retiring assets, correcting double taxation from the
secured roll and challenging valuations on assets.
Nevada Property Tax Questions
Question: Why did my tax bill increase when my assessed value
decreased or did not change?
Answer: As a result of the 2005 tax abatement legislation, commonly
known as the "tax cap," current year tax bills can be limited to an increase of
3% or 8% (depending on the type of property) over the prior year’s taxes.
Therefore, changes in assessed value do not have as much impact on a tax bill
(up or down) as they did prior to the law change.
The abatement is the amount of additional taxes that would have been owed if not
for the tax cap. For a property with a 3% tax cap, if your 2005 tax bill was
$1,000, your 2006 tax bill could be no more than $1,030 even if the calculated
taxes (assessed value x tax rate) was $1,050.
In the example above the $20 difference between the actual tax bill of $1,030
and the calculated tax bill of $1,050 is the abatement amount.
The abatement amount is identified on the tax bill. A decrease in assessed value
will not result in a decrease in taxes until the prior year's tax bill plus your
tax cap percentage is greater than your actual calculated taxes. In an
increasing market you may receive abatement for each year. In a declining or
stagnant market your tax bill may eventually increase until there is no
abatement for a tax year.
For most properties, fiscal year 2004/05 is the base year for applying the tax
cap and calculating the abatement. Although values may have increased in
succeeding years, the new law limits the increase in a tax bill to 3% or 8%.
Any increase in value (except increases due to improvement to or changes in the
actual or authorized use of the property) that would cause a property owner’s
tax bill to increase by more than 3% or 8% results in an abatement of the taxes.
For parcels created after fiscal year 2004/05, which are designated as "new
parcels," the base year would be the year the parcel was created and the
abatement and tax cap would apply from that year forward. Source: Washoe County
Assessor.
Question: Why was my property tax liability increased more than
8% for the prior year?
Answer: There are three events that can cause your taxes to
increase over the 3% or 8% tax cap, which are: (1) new construction, (2) a
change in actual use, or (3) a change in authorized use. The removal of the
abatement or addition of “new land” should always be reviewed to determine if it
was appropriate and is fair and equitable. The removal of the abatement can be
challenged. However, the process is different than appealing valuation issues.
|
