BILL ANALYSIS
AB 992
Page 1
Date of Hearing: April 28, 2009
ASSEMBLY COMMITTEE ON BUSINESS AND PROFESSIONS
Mary Hayashi, Chair
AB 992 (Lieu) - As Amended: April 21, 2009
SUBJECT : Advertising: residential property taxes: assessment
appeal application filing services.
SUMMARY : Recasts provisions relating to a property assessment
appeal filing service to instead make them applicable to an
assessment reduction filing service, as defined, and places
additional restrictions on the activities of an assessment
reduction filing service. Specifically, this bill :
1)Makes it unlawful for a person to make any untrue or
misleading statements in any manner in connection with the
offering or performance of an assessment reduction filing
service, which is defined as any service performed or offered
to be performed for compensation in connection with an
application or request of any kind of reduction in assessment
of residential property, as specified, or to provide
comparable sales information in connection with such an
application or request.
2)Includes in the definition of an assessment reduction filing
service those services performed by a person who actively
advocates, in person or by written and oral communications, on
the behalf of the person to whom a solicitation is made before
the assessment appeals board or the assessor's office.
3)Prohibits an assessment reduction filing service from
charging, demanding, or collecting money in connection with a
request for review, or in connection with an assessment appeal
application, until after the request is filed with the
assessor or until after the assessment appeal is filed with
the clerk of the assessment appeals board, as specified.
4)Makes it unlawful for an offeror of an assessment reduction
filing service to file a request or application of any kind
for reduction in assessment without first obtaining a written
authorization from the property owner, as specified.
EXISTING LAW :
AB 992
Page 2
1)Provides that certain advertising related practices are
unlawful and makes a violation of those provisions a crime.
2)Makes it unlawful for a person to make any untrue or
misleading statements in any manner in connection with the
offering or performance of an assessment appeal application
filing service, which is defined as any service performed or
offered to be performed for compensation in connection with an
application for reduction in assessment of residential
property, as specified.
3)Exempts from the definition of an assessment appeal
application filing service any service performed by a person
who actively advocates, in person or by written and oral
communications, on the behalf of the person to whom a
solicitation is made before the assessment appeals board or
the assessor's office.
FISCAL EFFECT : Unknown
COMMENTS :
Purpose of the bill . According to the author's office,
"Property values have dropped dramatically since the staggering
increase that occurred during the real estate boom earlier this
decade. Against this backdrop, a blatant scam has arisen where
private companies contact homeowners and offer to help them
lower their property tax bill. The company offers to file a
property tax reduction request with the assessor's office, in
return for an up front fee of several hundred dollars. In
addition to the fee, there is a penalty charge assessed if
payment is not received by a specific date.
Homeowners can already apply for a reduction in property tax
value - and a resulting lower tax - without charge. It is a
free service and the application process is relatively simple.
Current law regulates solicitations to assist homeowners in
having their property values reassessed, including important
disclosures to help homeowners understand that solicitations
don't come from government agencies. However, an exception
exists for those who 'actively advocate' on behalf of the
property owners. Solicitors are using this exemption as a
loophole to avoid any disclosures. AB 992 removes the 'actively
advocate' exemption while concurrently banning any advance
payment until after documents are actually filed on behalf of
AB 992
Page 3
the homeowner."
Background . In all counties in California, either one or more
assessment appeals boards or a county board of supervisors
performs the duties of a local board of equalization, commonly
referred to as an appeals board. The appeals board is an
independent entity whose function is to resolve disputes between
the county assessor and taxpayers over values of locally
assessed property. The decisions of an appeals board are legally
binding and enforceable.
According to the State Board of Equalization (Board), "An
assessment appeal is the due process a taxpayer may initiate if
the assessed value of his or her property cannot be agreed upon
with the county assessor. A county's appeals board, a
quasi-judicial body consisting of impartial persons or a hearing
officer, hears evidence from both parties before deciding upon
the value of the property in question. The assessment appeal
process provides for the 'equalization,' or the fairness of the
assessment, of a property's value."
The Board recommends the following action for property owners
who think that their property value has decreased below the
assessed value shown on their tax bill:
First, you should contact your county assessor's office.
Many county assessors request that you complete a short
informal assessment or appraisal review form providing them
with data to support why you believe your property's value
is lower than your assessed value. The county assessor's
staff will then review this information and may concur with
the information you have submitted. However, if a
difference of opinion of value still exists after reviewing
pertinent information, you may appeal the assessed value to
the county board of equalization or county assessment
appeals board.
If you decide to appeal, you must obtain [a form] from the
clerk of the board where your property is located. If your
clerk of the board does not provide the form on their
website, you may call them to send you a form or you may
pick it up at their office. Your application must be filed
during a specific period with the clerk of the board in
order for the application to be valid.
AB 992
Page 4
Support . The Office of the Assessor, County of Los Angeles
writes in support, "The dramatic drop in property values has
opened the door for opportunistic companies offering the promise
of lower property taxes. These companies send mailings
requesting a hefty upfront fee to provide a service that is done
for free by the assessor. Making matters even worse, is that
the letters look like they come from a government agency.
"My office, and many others throughout the state, are being
inundated with questions and concerns from property owners who
have received these misleading mailers. Many have already sent
in money to these companies.
"Some companies involved in these mailings are hiding behind the
legal technicality that current notification requirements only
apply to the filing of a formal assessment appeal application.
They insist that they are requesting a review by the assessor,
falling short of a formal assessment appeal. AB 992 clearly,
and appropriately, specifies that current notification laws
apply to any application for a reduction in the assessment of a
residential property. In addition, the provision in AB 992
prohibiting the charging of a fee before any application is
filed will protect countless property owners, many of them
seniors, from paying for a service offered by free by county
assessors."
Previous legislation . AB 1178 (Davis), Chapter 249, Statutes of
1997 places restrictions on assessment appeal and homeowners'
exemption solicitations.
REGISTERED SUPPORT / OPPOSITION :
Support
Los Angeles County District Attorney's Office (sponsor)
California Association of Clerks and Election Officials
Los Angeles County Board of Realtors
Office of the Assessor, County of Los Angeles
Opposition
None on file.
Analysis Prepared by : Whitney Clark / B. & P. / (916)
319-3301
AB 992
Page 5