County Puts Time Limit on Tax Appeal Hearings

As Los Angeles County scrambles to process a huge backlog of property tax appeals before a looming deadline, the Board of Supervisors on Tuesday approved a plan to limit appeal hearings to two hours or less, despite objections that such a limit violates taxpayers’ rights.

County officials say that several factors--recession, riots, natural disasters--have resulted in unprecedented numbers of property owners challenging county assessments in the last two years.

The county must process 40,000 of its pending cases before Sept. 15. Under law, if the county does not hear the appeals by the deadline, the property owners’ estimates of what the bill should be automatically stand. The county estimates it could lose as much as $400 million in property tax revenue.

Under the new appeals process, a property owner with a single-family home will get 25 minutes before the Assessment Appeal Board. Owners of other types of property are subject to other limitations. For example, the owner of a parcel worth $100 million would get two hours.

The supervisors agreed, however, to allow the appeals board to grant additional time based on a strong showing of need. Property owners can also get around the time limit by waiving a requirement that the county process their cases by Sept. 15.

But those concessions failed to satisfy most opponents of the plan, who contend that imposition of an arbitrary time limit infringes on due process rights.

“We can’t cancel due process for taxpayers simply because the county is in a bind,” said Supervisor Mike Antonovich, who cast the single vote against the plan.

Several attorneys opposed to the plan said the county’s actions will almost assuredly invite legal challenge.

“Obviously, taxpayers adversely affected by the new rules may well have a judicial remedy available,” said C. Stephen Davis, a member of the Los Angeles County Bar Assn., who addressed the supervisors.

The board also agreed Tuesday to give $1 million in unanticipated revenue to the assessor’s office to help process the appeals backlog--an approval that was almost derailed when representatives of Assessor Kenneth P. Hahn’s office acknowledged that, six months into the fiscal year, the department is about $300,000 over budget.

That admission prompted Supervisor Gloria Molina to chastise Chief Deputy Assessor Gary Townsend.

“We give people a budget and they’re supposed to live within it,” Molina scolded, suggesting the department might be due for a management audit. She threatened to withhold her vote, even though it would have meant holding up nearly $1 million in overtime and computer equipment costs needed by the assessor to process the appeals backlog.

Molina finally relented after being assured by Chief Administrative Officer Sally Reed that department heads will be instructed to stay within their budgets.