Current Market Situation

Due  to  reduced  travel  and  current  economic  conditions, a decline in occupancy and  revenue has  occurred  for  many  lodging  facilities  in California.   These  factors  could  result  in  assessed  values for these properties  exceeding  the market value.  Consequently, the owners of these properties may be eligible for relief under Proposition 8.

Who Qualifies?

The  California real estate market has reached historical highs in the last few  years.   Hotels  that have opened and been assessed during this period may  have high assessments.  Also qualifying could be older properties that were  assessed based upon original construction costs or in stronger market periods.   In  California,  the original or base assessment of these hotels has  trended  at  two  percent  annually,  regardless of market conditions.  Consequently,  over  an  extended ownership period, the trended assessments could easily exceed current market values.

Timing

The  annual filing period is between July 1 and September 15.  If you would like  to find out more about the appeal process or wish to pursue a reduced assessment,  please  feel  free  to  call Mark McQueen at (415) 248-2135 or [email protected].

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