What to do About Payment of Taxes While an Appeal is Pending

The law requires that you pay at least the undisputed portion of your taxes prior to the delinquency date in order to file an appeal. You also must pay the full amount of any delinquent taxes due against the property for prior years. By so doing, you avoid the usual penalty and interest for delinquent taxes and the possible delay or dismissal of your appeal. When a final certificate of assessment is issued by the Board of Equalization or Assessment Appeals Commission, the taxpayer will receive a refund of any overpayment or will owe the amount of any underpayment of taxes, along with interest at the rate provided by law.

To calculate the undisputed portion of taxes, divide the value you claim in good faith to be the fair market value for your property, by the assessorís value, and multiply the result times the taxes due. County taxes for the year under appeal may be obtained from the office of county trustee. City taxes (if any) may be obtained from the city collecting official, who may be either the city treasurer, city recorder, or the county trustee, who sometimes also serves as the city tax collector.

The interest rate applicable to taxes under appeal is the composite prime rate published by the Federal Reserve Board, minus two points.