Don’t Pay That Fee for New-Home Exemption

Homeowners who receive mail solicitations telling them they can file for a tax exemption for a fee should know that the simple process can be completed free of charge, the Los Angeles County tax assessor said.

Assessor Kenneth P. Hahn said that at least two companies have sent out fliers saying that for $30, the company will file a homeowner exemption claim form on behalf of the homeowner.

But filing for the exemption, which can save the homeowner about $75 in annual property taxes, is free and simple, Hahn said.

“It’s really unconscionable that someone’s going to charge people for this,” Hahn said.

The assessor sends the homeowner exemption claim form to all new homeowners within three months of their home purchases, and there is no charge to file the mail-in form.

The homeowner exemption in effect reduces the taxable value of a home by $7,000, which saves homeowners about $75 on their tax bill, officials said. The only criteria is that homeowners may only receive the exemption for a house that is their principal residence.

Hahn said the assessor’s office has been aware of the third-party exemption-filing companies for several years and has issued taxpayer warnings in the past.

After numerous home buyer complaints, the state’s assessors successfully sponsored legislation in 1997 placing restrictions on such companies. Among other things, the law prohibits companies from charging more than $25, from collecting money before filing the exemption form on behalf of the homeowner and from implying that they are connected to any government agency.

The law also requires that companies’ fliers advise taxpayers that the exemption claim can be filed for no charge through the assessor’s office. Neither of the fliers now being sent to homeowners displays that information.

Assessor officials said they work first through the county Consumer Affairs Department to get companies to conform to the law. If further action is needed, the district attorney gets involved, officials said.

Homeowners who qualify for an exemption but receive a tax bill that does not reflect the exemption should call the county assessor’s office at (213) 974-3211.