Agenda 10-21-2025; 7-a - Update on Revaluation Appeals and Neighborhood Reviews

Browse Search

2 39.6% of the formal appeals with 670 still in process. The remaining appeals are scheduled to be completed on or before December 11, 2025. The total change in assessed value from appeals is a decrease of $219,893,471 as of October 13, 2025. The median change for residential properties is a decrease of$41,600, and the median change for nonresidential properties is a decrease of$80,600. Neighborhood Reviews The Tax Office conducted an equity analysis on the County's 1,026 assessment neighborhoods. The International Association of Assessing Officers (IAAO) specifies that measures of vertical equity are only representative of possible inequities in neighborhoods with five (5) or more sales. Of the neighborhoods with more than five (5) sales, the Tax Office identified 86 neighborhoods that were outside of the equity standards used by the IAAO. Of the neighborhoods with less than five (5) sales, the Tax Office examined those neighborhoods for consistency and reasonableness and identified an additional 76 neighborhoods that require a more thorough review. The Tax Office is also studying the 19 neighborhoods identified by the Orange County Property Tax Justice Coalition for possible value adjustments. A total of 171 neighborhoods were identified by the Tax Office for closer review. Tanner Valuation Group is assisting the Tax Office with the neighborhood level reviews. As of October 13, 2025, twelve (12) neighborhood reviews have been completed. Those reviews resulted in value adjustments to 432 properties and a total assessed value decrease of $23,519,300. The Group has started with the 19 neighborhoods identified by the Orange County Property Tax Justice Coalition and is conducting extensive field work on those neighborhoods. Once those neighborhoods are completed, the Group will move to the neighborhoods with the highest number of appeals. As the the number of appeals decreases by neighborhood, the intensity of the field work will decrease, and the completion rate will accelerate. If value adjustments are made, property owners will receive a notice of the change and will have fifteen (15) days to appeal that change to the Board of Equalization and Review. If the change in value also changes the amount of property tax due, taxpayers who have already paid their property taxes will be issued a refund if the amount is lower than their original tax bill or a notice of additional tax due if the amount is higher than the original tax bill. Appeals and Neighborhood Review Dashboard In an effort to provide timely updates, the Tax Office has automated several reports to track the status of appeals and neighborhood reviews in aggregate and by neighborhood. The dashboard (Attachment 1) summarizes the total number of informal and formal reviews completed either by the Tax Office or the Board of Equalization and review. The dashboard also tracks the properties that had a change in value, the dollar value of the reduction, and the percentage values were reduced for the properties that had a change in value. The dashboard also shows the number of neighborhood reviews that have been completed, the number of properties where the value was changed, and the dollar value of those changes. The FY2025-26 Budget assumes a tax base reduction of 3% or $936,162,977resulting from the appeal process. Currently, the total decrease in the tax base is $243,412,771 or 0.78%. If the tax base is reduced by more than 3%, property tax collections may not meet the budgeted amount.