The Los Angeles Times from Los Angeles, California • Page 302

VALLEY TAI BUSINESS PROPERTY VALUES RON GALPERIN A Well-Timed Reassessment Can Mean a Lower Tax Bill omeowner Michael E. Sandstrom is more getting than his property The tax tax bill cut savings by will at least help offset the decline in value of his Granada Hills home purchased at the height of the market in 1989 for $230,000. Sandstrom filed an application for property tax reduction with the Los Angeles County assessor's office. The result was an adjustment of value down to $162,000, and Sandstrom will save about $700 a year in property taxes. "It was a very simple process," Sandstrom said.

"I would definitely recommend that other people do the same. It doesn't hurt to try." Nearly 17,000 other homeowners in the county would tend to agree with Sandstrom. They have all recently been the beneficiaries of favorable reviews by the assessor. Another 400 commercial property owners were also handed lower property tax assessments as part of an application process designed to give some relief to beleaguered property owners. Given the decline in home prices, property owners can often make a good case that their homes are overvalued by the tax assessor.

The filing for tax relief is a two-stage process. Property owners can begin by filing a claim directly with the county assessor's office, based on provisions in California law. Proposition 13 allows owners to request that their assessment be adjusted if their property has fallen victim to misfortune or calamity -like a flood, fire or civil disturbance. In limited cases, owners can also contest the "base year" assessment used to calculate successive tax bills. Proposition 8 allows owners to file decline-in-value applications.

(If approved, the lower Proposition 8 assessment is valid for one year, and another request may need to be filed the next year.) Thanks to a lackluster real estate, market, these types of applications are accounting for the bulk of claims filed with the assessor. If you missed the May 15 deadline for filing these claims with the assessor, don't worry too much. The second option is to file an appeal of your tax assessment with the county Assessment Appeals Board before Sept. 15. The appeal form takes 5 to 10 minutes to fill out, and all that's basically required is the owner's name, address, phone number and estimate of value.

(To get the forms call the assess- "There is no need to pay someone to file a claim for KENNETH P. HAHN Los Angeles County assessor ment appeals office at 213-974-1471.) Property owners can request that their appeals be aired before a hearing officer in any of 10 locations around Los Angeles County, or before a three- hearing panel. Homeowners can either contest an unfavorable reply by the assessor to a reduction claim, or they can make their first such request directly through the appeals process. Hearings are set to begin in September, so don't expect a favorable ruling to be reflected in your October tax bill. If the Assessment Appeals Board rules in your favor, however, a refund will come later.

"People aren't aware of their rights," said Terry Reed, owner of Property Tax THE ULTIMATE LEASING PROFESSIONALS BOB SMITH BMW IT'S '7' HEAVEN! 1992 BMW 735 ia LEASE FOR: 469 PER MO. tax for 54 mos. on approved credit. (D871064) Total to start $8431.40. EXPIRES Total of payments $25,341.66.

Closed end lease OFFER BOB SMITH BMW (818) 346-3144 Specialists in Pasadena. He started his company about two years ago to help property owners file claims and appeals with the county. "Only after I've gotten results do I charge a fee," he said. That usually totals about one-third to one-half of the owner's tax savings. "Everyone is responsible for paying their fair share -but no more," Reed said.

"Most people won't appeal because who wants to take the time off of work?" That's where Reed comes in. One of his clients owns a home in Mission Hills. The ownerwho is also a real estate agent -bought the home in 1990 for $255,000. The most recent assessment by the county was $234,090. Reed filed a claim on behalf of the owner and got the home reassessed at $210,000.

That isn't enough to satisfy Reed, however. He wants the value knocked down to $155,000. An appeal is in the works, Reed said, "and I know I will get it." Assessed value is based on the comparable prices for homes in your neighborhood at the time you bought or built the house, plus a increase per year. Taxes vary from to 1.25% of the assessed home value. "There is no need to pay someone to file a claim for you," Los Angeles County Assessor Kenneth P.

Hahn advised. "While commercial firms charge a fee to provide sales information, this very same information. is readily available in our offices without any charge." "The process itself is relatively easy," said Patrick Chambers, director of property tax for accounting firm Arthur Andersen Western region. He advises homeowners to do their homework. The best strategy, Chambers said, is to give a "complete description" of comparable neighborhood sales- -with a photograph.

Finally, he added, "don't put down a ridiculously low value." If you think the property has gone down about it's OK to estimate a drop, but it's not advisable to claim a drop. According to the assessor's office, there were 28,000 reviews this year based on reduction of value as outlined in Proposition 8. About got reductions averaging $53,700. Of the 28,000 reviews, 18,500 were concentrated in north Los Angeles County communities such as Newhall, Lancaster and Palmdale. It's worth noting that many homeowners are benefiting from lower assessments without ever asking for them.

In fact, a majority of the reviews made by the assessor were not requested by the owners. When several owners in a housing development or in a particular neighborhood are successful in winning lower assessments, the assessor often reassesses the whole area so that the tax burden is shared equally. In areas affected by rioting this spring, the assessor plans to reassess a broad number of properties to give owners some relief. And in Ventura County, homeowners will see an average $300 savings in their property taxes, thanks to recent blanket reassessments by Ventura County officials. Not everyone is happy about the way assessments get lowered.

Many municipalities are concerned that lower tax revenues mean less money for already strapped government services. On the other end of the spectrum are homeowners such as Dr. Lawrence Glass, who was turned down in his claim for a lower assessment. Glass paid $685,000 last year for his three-bedroom, four-bath home on MadeLia Avenue in Sherman Oaks. He says it's worth just $510,000 today, but the assessor rebuffed the claim.

Glass isn't giving up yet -he has until mid-September to file an appeal. 1 POINT SPECIAL FIXED RATE 24 HOUR (805) 371-1507 Jumbo Ask 6.88% APR About FREE APR EZ- -Qualify 6.941% Group West Associates, Inc. or Points Your CA Broker JDT Pacific Mortgage (714)729-2270 (818) 889 -0216 Kathy Klaja (800)244-8711 We Have Plans For You! Patio WE'LL VISIT YOUR HOME, WORK UP PRELIMINARY DRAWINGS, GIVE YOU AN ESTIMATE ABSOLUTELY FREEI ROOM Completion Financing O.A.C. ADDITIONS to M8R 10 Family Room Dining Rooms Kitchen Remodeling Bath Remodeling PINTRIDGE Garage Master Conversions Bedroom CALL Suites FULL Interior SUPERVISION Remodel CONSTRICTION Lad. (818) (800) 339-1101 LIC.

PAGE 8 JUL. Y. 21.11992. LOA TIMES.