Up Coming Events

Click here to view the up coming events PTA RETD plans on attending

2010-2011 Events

PTA has attended the following Events

California Property Tax Reduction

The Eighth Annual Winter Forum on Real Estate Opportunity & Private Fund Investing, which was held January 12-14, 2011 in Laguna Beach, CA.

REIT Convention

Western Non-Traded REIT Industry Symposium which was held December 8-8, 2010 in San Diego, CA.

NAREIT Convention

NAREIT's Annual Convention of All Things REIT which was held November 15-17, 2010 in New York, NY.

Apartments 2010 Conference

Real Share Apartment 2010 Conference which was held October 21, 2010 in Los Angeles, CA.

Distress Commerical Real Estate Tax Assistance San Diego

ICSC's Western Division Conference which was held September 22-24, 2010 in San Diego, CA.

Real Estate Investment Trust

We are a member of the National Association of Real Estate Investment Trusts (NAREIT).

Los Angeles Tax Assitance Firm

PTA, Real Estate Tax Division will be actively attending BOMA Greater Los Angeles events in 2010. We are a member of the Building Owners and Managers Association of Greater Los Angeles Chapter (BOMA).

Tax Professtional California, Nevada, Oregon, Washington

PTA has been a long standing member of the Institute for Professionals in Taxation (IPT) for over 20 years.

Property Tax Reduction News


Sean P. Keegan, EVP & Principal                                                                      Fall 2010

Considering the Income Approach to value.

We have witnessed dramatic changes in California real property values during 2009 & 2010. As asset managers, property managers, owner users, and institutions look for ways to reduce costs, the annual review of property tax liabilities may provide tax savings opportunities. This tax liability is based on the Assessor's Property Value which is then multiplied by the tax rate (CA - estimated at 1.1%). For the 2010/2011 Tax Year, tax bills will start to be issued in October.

In the County Assessor's Office, the Real Property Division has already issued their 2010/2011 values for land and improvements. They will review assessments as they are appealed. For properties built or acquired during the period of 2004 through 2008, it is probable that the property values have decreased compared to the County enrolled values. The 2010/2011 county values may not reflect a value decrease which is contrary to the real estate market downturn during 2008-2010. The Assessor's Office will be challenged with the 2009/2010 & the 2010/2011 Appeals due to the fact that for many property types there have been a low number of property sales to provide meaningful sales comparables. This affects our ability to have any meaningful rates derived from these sales (OAR-Overall Rates).

It is important to determine whether the Assessor knows the facts, any limitations to the income (i.e. restrictions, expensive renovations, demand due to newer projects nearby, age, functional obsolescence, or the expected changes associated with your property). We believe that the subject property income and the income approach may be more accurate in valuing your property than trying to find sales comparables.

For the income approach to value, if the Assessor is relying primarily on leasing information (rent roll report) as contracted without making adjustments where the taxpayer is providing several months of free rent to retain a tenant due to current market conditions, then the resulting value estimates will require adjustment. Also, actual vacancy and collections may differ from the Assessor's estimates.

The California Code of Regulations outlines in Rule 8(a), the Income Approach to Value is "used in conjunction with other approaches when the property under appraisal is typically purchased in anticipation of a money income ..." The Assessor's Handbook (AH) 501 states "[T]he income used in rate derivation must be the investor's anticipated income, because the decision to invest in property is directly related to its anticipated return." If the anticipated income is not reasonably accurate for the subject property or a comparable property, it can create a flawed value result. "In direct capitalization, only the next year's income is forecasted." (Advanced Appraisal, AH Section 502, P. 67) However it is beneficial when subject property information is available for two years, currently we do know that rents have decreased and the net operating income may have decreased. It helps in countering the county appraiser's forecasts. This is possible since assessment appeals are not calendared for hearing for more than a year.

In our opinion, the income approach to value provides opportunities for value reductions on properties since real value estimates may be made for the subject property. If the reduction in value is processed and the taxes have been paid, then a refund will be issued. These monies may provide a reduction to operating expenses for the owner-user or these efforts by the landlord create value to the property tenant. To protect your rights for many of the California counties, we will need to file the Assessment Appeal Application by 11/30/10 on your behalf.

Tags: Real Estate Property Tax Reduction, Reducing Property Taxes, California, Nevada, Oregon, Utah, Arizona, Property Tax Relief Assistance

35 Years of Industry Expertise


Don't just settle with the county assessor for an average property tax refund, anybody can do that. Get your commercial property taxes Reduced Now, delivered by a 35 year industry specialist. Let PTA assist you in getting your values reduced today.

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Our Property Tax Consulting firm specializes in the following areas:

  • Property Tax Representation
  • Decline in Value Appeals
  • Base Year Value Establishment
  • Tax Notice & Bill Review
  • Special & Direct Assessments
  • Compliance for Real Estate Assessments
  • New Construction Analysis
  • Ownership Issues & Possessory Interest
  • Business Personal Property Tax
  • Leasehold Improvements & Tenant Fixture Issues

Our offices are located in Southern California and Northern California to service all of your real estate tax needs throughout California and the Western United States. Our reach is local, regional and national.