Assessor awaits size of property tax case

The Orange County assessor has decided to wait to see if a property

tax lawsuit becomes a class-action lawsuit before asking a higher court

to review the case.

Webster Guillory decided this week against asking an appellate court

to review a case that could cost the county $285 million in the refunding

of property taxes.

The case is based on a Seal Beach resident who sued the county for

raising his property assessment above the 2% limit mandated by

Proposition 13, passed in 1978. In December, Superior Court Judge John

Watson ruled the county acted illegally in trying to recapture lost

assessment when a home loses value and then rebounds.

Douglas J. Maloney, one of Guillory’s attorneys, said he did not opt

to ask a higher court to review the case at this stage because he did not

think there was enough time to prepare a thorough argument. Unlike an

appeal, the appellate court has the option of not granting a review,

Maloney said.

“It’s almost as much work and effort as putting together an appeal,

and if you don’t do it right, then that would be a reason not to get it.

It’s a judgment call,” Maloney said.

But Maloney added that he would ask for a review if Watson grants the

case class-action status, which could happen as early as April 25.

If the case is given class-action status, the county would be forced

to refund about $285 million in property tax payments, costing the

Newport-Mesa Unified School District about $11.5 million the first year,

according to a report by the county auditor released in January.