2025 Reduction In Property Taxes (Proposition 8)

Commercial Property Owners May Qualify for Temporary Tax Reductions

In many instances, office vacancies have led to a significant decline in the values of Bay Area commercial real property in 2025. The value of real property that is used to determine the property tax assessment for the 2025-2026 fiscal year (which runs from July 1, 2025 to June 30, 2026) is determined as of the January 1, 2025 lien date.

If the market value of your property as of January 1, 2025, is lower than its current assessed value, you may be eligible for a temporary reduction in your property tax assessment under Proposition 8. In such cases where a property owner requests a reduction, the Assessor has the authority to proactively change the assessed value of a property to recognize a decrease in value (a one-time Proposition 8 reduction). If a property owner disagrees with the Assessor’s determination, the owner can file an Appeal with the Assessment Appeals Board and receive an Administrative Hearing. The deadline for filing an Appeal in most counties is September 15, although a few are December 1.

Our tax partners Jeff Bernstein and Jacob Lager have extensive experience in property tax assessment matters, and have attained significant reductions in property tax valuations for many commercial and multi-family residential properties. If a reduced valuation can be achieved, the property tax savings could be substantial.

Please contact Jeff Bernstein (jbernstein@coblentzlaw.com) or Jacob Lager (jlager@coblentzlaw.com) directly if you are interested in discussing your potential for a reduced property tax valuation.