That represents about 14 percent of the General Fund money that will be spent in 1999-2000. A building's base-year value is set when a building is completed, renovated, or sold. Appraisers look at comparable properties and establish a value based on what the building could conceivably sell for with adequate exposure in the current market. That's not a simple process. Once a value is established, the owner may file an application for reduction with the Assessment Appeals Board.
Negotiations then begin with the assessor's office, which has up to one year to strike a compromise.
Otherwise the case goes to the appeals board for resolution. If a settlement occurs, the case is then noted as withdrawn. Owners must continue to pay tax on the original assessment until the process is complete. If they get a reduction, the money is refunded to them. But the board's power is limited.