Filed a Prop 8 on my DTLA condo — anyone actually get a reduction in LA County?

Question

Hi all, new here.

I have a condo in downtown LA that I bought in 2021 for $615K. It sat on the market as low as $430K and still didn't sell, so it's rented out now. Meanwhile the county has it assessed at $679,005 — I'm paying $8,261 a year in property tax on a place the market clearly values way lower.

I filed a Prop 8 decline-in-value this year and I'm still waiting to hear back. Curious if anyone here has been through this in LA County — how long did it take, and did you get a meaningful reduction? And if they deny it, is the appeal hearing worth doing?

Happy to share my numbers if it helps anyone.

Simon W. · Answer

Since it's a rental now, here's the tax side of what a reduction is worth. Your bill works out to about 1.22% of the assessed value. If the assessor lands at $450,000, that's roughly $5,475 a year, or about $2,786 less. Property tax on a rental is generally deductible, so the savings show up as less deduction and more profit, not a straight $2,786 in your pocket. At a 24% bracket, the after-tax difference is around $2,100, which still more than justifies the effort.

Two cautions. First, tax bills often include fixed charges and special assessments that don't move with value, so the bill won't drop in exact proportion. Second, a Prop 8 reduction doesn't touch your depreciation. That's still based on what you paid, $615,000 less the land portion, so keep that number separate from the assessed value.

If a refund for a prior year comes through, it's generally treated as a reduction of the property tax expense in the year you receive it. Joe's escrow point is a good one.

Ming Yi · Answer

Prop 8 is worth filing when the gap is that big, and yours is. The county assesses on value, not on what you paid, so a condo assessed at 679K while similar units list in the 430s is exactly the situation the decline in value claim exists for. The strongest filing brings real comps, not just your listing history: recent closed sales of comparable condos in the same building or complex, plus any active listings that sat unsold. Keep a copy of everything you submit. Timelines in LA County vary a lot, months is normal, and if the assessor denies it or offers a small cut, the appeal hearing is worth it when the dollar difference justifies your time. At roughly 8K a year in tax, even a partial reduction pays for the effort. One caution: a lower assessed value also resets your base, so track what the new number is for next year.

Monica Zhou · Answer

Leaving this here for anyone who finds this thread later: there's a free DIY guide that walks through the whole Prop 8 filing step by step: https://hiholt.com/file-yourself — the LA County deadline this year is November 30.

Joe Piccirello · Answer

Monica, one thing to plan for once you hear back. If your property taxes are paid through an escrow account on your mortgage, a Prop 8 reduction won't lower your monthly payment by itself. Send the new assessment to your servicer and ask for an escrow analysis, so the payment gets adjusted now instead of building up a surplus you don't see until the annual review. Prop 8 reductions are also temporary and get reviewed each year, so hang on to the comps and the $430K listing history for the next round.

Monica Zhou · Answer

Thanks, Joe — I hadn't thought about the escrow side at all. If the reduction comes through I'll send the new assessment to my servicer for an escrow analysis instead of waiting for the annual review. And yes, I've kept the comps and the full listing history — sounds like I'll need them again next year.

Filed a Prop 8 on my DTLA condo — anyone actually get a reduction in LA County?

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