I had an interesting phone call from a client this week.  She purchased her Burbank townhome for $535,000 in 2007 and the tax assessor sent her a bill based on an assessment of $600,000. Los Angeles County property taxes can only increase 2% per year unless there has been an addition, remodel, etc (typically with permits so that the county is aware of the improvements).

My client phoned me and I was just as confused as she.  I contacted the assessor’s office and they confirmed the fact that they had originally assessed her unit at a higher amount.  My client's original purchase price was lower than what the assessor believed the value to be, thus they automatically reassessed it. (You would think there would be a "courtesy" letter but there wasn't).

Solution?  I don’t know if you can beat the tax collector, but we are trying.  Round One: We are sending the assessor confirmation of the actual price paid and a short explanation.  Wish us luck!