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APARTMENTS

    Total Assessed Value Reductions $ 2,250,000,000

    Total Tax Savings 24 Million Dollars

    Each year Protax LLC represents approximately 1,000 apartment complexes consisting of 50,000 rental units. Since 1990, our actions have been saving our apartment clientele over $25,000,000 annually on their property taxes. These tax savings were generated from temporary reductions granted under Proposition 8 and from permanent reductions granted under Proposition 13.

     

    Case Study #1: Developer of large garden-style luxury apartment complexes saves ½ million dollars!

    Case Study #2: Property Management Company receives mutli-million dollar tax savings!

    Case Study #3: A wealthy doctor partners with Protax LLC for big tax savings!

    Case Study #4 : Russian immigrant donates her entire real estate portfolio to religious organization!

    Case Study #5 : Section 515 & 236 federally subsidized housing battles the State Board of Equalization!

     

    Case Study #1: Developer of large garden-style luxury apartment complexes saves ½ million dollars!

    Total Tax Savings: $550,000 (9 year period)

    An owner of four luxury apartment complexes in San Diego County, consisting of approximately 400 units each, hired Protax LLC to review and reduce their property tax expenses. Protax LLC prepared and submitted a series of informal requests and formal appeals that reduced the assessed values on these four projects by $50,000,000 over a seven year period. These efforts produced a total property tax savings exceeding $550,000.

    “As many of our properties contain a number of limited partners whom are foreign born nationals, it is very important to us for our property tax representative to comply with all the property tax laws while they represent our interests. Protax LLC handled all of our dealings with the County Tax Authorities in a very professional manner, and the tax savings were very impressive producing a tremendous savings which flowed directly to our bottom line.”

    E.C. (Lomco Management)

     

    Case Study #2: Property Management Company receives multi-million dollar tax savings!

    Total Tax Savings: $ 2,000,000+ (11 year period)

    Protax LLC began monitoring the property tax expenses for a portfolio of about 1,000 luxury apartment units in Southern California. On average, each project began with an average assessment of $8,800,000 and received a 30% reduction. This translated into an average annual tax savings of $26,400 per property.

    “The early to mid 1990’s was a difficult time for apartment owners as vacancies and expenses ran high while rents remained quite low. Protax LLC not only produced a great deal of savings they also worked with us on the projects that were experiencing the most dramatic cash shortages. The tremendous tax savings produced by their work and their partnership approach helped us to get through these tough times.” R.G. (IGP Partners )

     

    Case Study #3: A wealthy doctor partners with Protax LLC for big tax savings.

    Total Tax Savings: $ 631,000 (9 year period)

    Although we represent many companies and corporations, the largest portion of our clientele consist of individual investors .A wealthy and famous doctor approached us to review the property tax assessment for his five apartment projects consisting of about 500 units. The projects were slightly older but were maintained in excellent condition. The actual rents that the good doctor was getting were in many cases somewhat higher than the market average due to his excellent team of property and apartment managers.

    Nevertheless, the R&T Code mandates that market rents must be used when determining the income that will be converted into the fair market value. Each property received an average reduction of 23% despite the fact that the properties had very low initial assessed values due to the fact that the base year values were established in the early 1980′s.

     

    Case Study #4: Russian immigrant donates her entire real estate portfolio to religious organization!

    Total Tax Savings: $ 717,000 (9 year period)

    Augusta was a Russian immigrant with a tremendous work ethic and an even larger heart. As she fled Russia during WWII, a 7ty day Adventist saved her life by assisting her with safe passage to the United States. When she died, she bequeathed her entire real estate portfolio consisting of a dozen apartment complexes with over 700 units to her local chapter of 7th day Adventists. The organization decided to keep the properties and use the income to run its daily operations and as such the properties remained subject to property taxation though the church itself was exempt from income taxes. On average, each project began with an average assessment of $3,200,000 and received a 30% reduction.

    “Protax LLC did an excellent job of monitoring and reducing our overall property tax expense. We have been associated with them for nearly a decade and enjoy the benefits of their services as well as the friendly and easy working relationship they provide. They are always willing to answer any questions we may have or assist us with any problems that arise.”

    J. M. (Orion Asset Management)

     

    Case Study #5: Section 515 federally subsidized housing battles the State Board of Equalization!

    Total Tax Savings: $ 4,000,000

    Section 515 low income subsidized housing was established by a branch of the federal government in order to construct low-income housing in rural areas for the disabled, handicapped, elderly and low income citizens. The fair market value of these properties is significantly less than their actual construction cost due to the numerous restrictions which severely limits the return to the owner. Due to the erroneous practice of assessing these properties at cost, the California State Legislature passed Senate Bill 1706 in 1978 for the sole purpose of providing some sorely needed property tax relief for these tenants. This bill sought to eliminate the “interest credit subsidy” thereby reducing the assessed values by 67%.

    Shortly after its passage however, the State Board of Equalization created a brand new assessment methodology voiding the relief intended by the legislature. They disseminated this new method state-wide in a formal “Letter to Assessors”. The new instructions applied to federally subsidized low income housing ONLY despite the fact that many other State, County and City subsidized housing programs contained similar if not identical subsidies.

    Protax LLC is the industry spokesperson for the interest parties which include:

    1) USDA Rural Development

    2) California Council for Affordable Housing

    3) the property owners and managers, and most importantly

    4) the disabled, handicapped, low- income and elderly tenants who are burdened with higher rents and in some cases an unsafe living environment due to an unfair and unnecessary property tax burden created, promoted and defended by the staff of The State