Part 4/11:
The Alarming Surge in Property Tax Appeals
Compounding the financial tumult, property owners in San Francisco are increasingly challenging their assessments, seeking to lower their tax liabilities amidst plummeting property values. The number of appeals has skyrocketed from 2,800 a few years ago to over 7,500, the highest since the Great Recession.
This influx is driven by the disparity between assessed property values and prevailing market prices—sometimes as much as a 90% reduction—which can translate into significantly lower property taxes. If the city’s assessment office does not resolve these appeals within the mandated two-year window, they are compelled to accept the reduced value, possibly leading to a $1 billion or more refund obligation.