Thinking of filing a property tax assessment appeal? Better be sure you understand the rules of the game if you plan on successfully reducing your assessment.

Since it’s not an easy process for the novice, the following is a guide to negotiating with your assessor and the Assessment Appeals Board.

First, recognize that the process is often disappointing, frustrating and uncertain. In fact, the assessment appeals process can take up to two years and possibly longer. During this time, any number of things may go wrong.

For example, after dealing with one deputy assessor for many months, suddenly you may discover that your contact has been reassigned. All that good will and relationship building you initiated may be for naught as you are faced with a new assessor.

Other types of roadblocks are changes in the internal operation of the assessor’s office. The administrative procedures are constantly changing, and you must remain flexible in your appeal endeavor. If you experience any of these frustrations, don’t feel alone you are in good company and are definitely not receiving unusual treatment.

You’ll be in good stead if you first determine how the assessor developed the county’s value of your property. This is an obvious first step in any appeal process. One minor glitch, however, is that in California it is often necessary to file an assessment appeal well before it is possible to examine these important records. You’re advised to proceed and launch the discovery process as soon as you are able.

Finding errors

A careful review of your records may uncover obvious errors that could have caused an over-assessment or that may expose a treatment somewhat favorable to the taxpayer. In these latter instances, the taxpayer should withdraw the appeal and consider the case closed.

When reviewing the assessor’s records, be sure to confirm the fundamental characteristics of the property, such as its size and the year built. The assessor cannot regularly visit even large properties and often they fail to pick up new improvements and remove old ones that no longer exist. In some of the toughest cases, valuation data on the type of property under appeal is lacking. In these instances, the applicant needs to be creative, and hope the assessor is receptive and flexible.

If your property is unique, your challenge will be to quantify the loss in value. If there were original projections regarding the use of the property, perhaps they can serve as the foundation for measuring “under-performance.” Sales of similar properties through dealers, resellers or other users may provide examples of market value.

During the course of your research, you may discover individuals who have extensive experience in the type of property under appeal. Because their perspective is significant and meaningful, it may be possible to engage the individual as an expert witness, even though such a role is outside his customary function. Such experts can create a persuasive awareness within the assessor’s office that the applicant is resourceful and has a strong case.

Keep in mind that there is more than one “assessor.” Although most taxpayers obtain usually no more than one tax bill from the county, even those who obtain two or three on the same property need to remember that there are several groups that operate in the assessor’s office. For example, the most familiar group deals with “real estate” issues, but even they can be part of a “possessory interest” group, a subset of the real estate division.

Knowing the board

You’ll want to get to know the Appeals Board. A critical component of your assessment appeal is the personality of the civilian panel that hears a contested case. Boards are like their members, varying in background, ability and understanding of the key issues. Consider the complexity of the case being contemplated before rejecting a pre-hearing settlement offer, often called a stipulation or a recommendation. If you can settle a difficult case within a reasonable range of an ideal value, you might be able to spare yourself future aggravation.

If circumstances preclude a settlement and dictate that you proceed with a case, it’s essential to present your case to the board in a manner they will understand.

Most important when presenting an appeal to a board is to maintain your credibility. No case is perfect, no matter how thoroughly you have done your research. An honest and realistic presentation of imperfectly fitting facts is sometimes more effective than a mathematically perfect presentation that comes across as arrogant. The bottom line: Don’t annoy your board.

Remember that the resolution of an assessment appeal for any one year is simply the beginning of next year’s negotiations. By building on the relationships and experience that you established in the first round, you will be better prepared to continue the battle in subsequent years.

In summary, the tedious and often confusing process of assessment appeals can be managed successfully if you have an understanding of the process. With a little perseverance, research and accurate planning, you’ll be able to navigate the treacherous waters of the assessor’s office to your final destination a reduction of your property taxes.

Michael Schaaf is president of Commercial Assessment Consultants and specializes in property tax issues.

Entrepreneur’s Notebook is a regular column contributed by EC2, The Annenberg Incubator Project, a center for multimedia and electronic communications at the University of Southern California. Contact James Klein at (213) 743-1759 with feedback and topic suggestions.