By Los Angeles County Politics (LACP)
Los Angeles County officials are warning homeowners, especially seniors, about a scam spreading through social media, online videos and phone calls that falsely promises lower property taxes through a nonexistent federal form.
The scam claims homeowners can freeze or reduce their property taxes, or avoid local taxes and school bonds, by filing a supposed IRS “Form 1098-SR.” No such form or federal property tax relief program exists. Property taxes in California are set by state law and administered locally, and the federal government has no authority to cap, freeze or reduce local property tax assessments.
“There is no federal 1098-SR form that freezes or reduces your property taxes. California does have legitimate property tax relief programs, but homeowners should verify information with the appropriate government agency before providing personal information or paying anyone for assistance,” said Los Angeles County Assessor Jeff Prang.
Los Angeles County Treasurer and Tax Collector Elizabeth Buenrostro Ginsberg warned that scammers often manufacture urgency to pressure victims into acting quickly.
“Property tax scams often try to create a sense of urgency or use official-sounding language to convince taxpayers that they must act immediately. Before making a payment or providing financial information in response to an unsolicited communication, taxpayers should verify the information directly with an official government source,” said Buenrostro Ginsberg.
Los Angeles County Department of Consumer and Business Affairs Director Rafael Carbajal said the scam can lead to identity theft, not just financial loss, and urged residents never to share Social Security numbers or banking information with an unsolicited caller, emailer or texter.
Several legitimate property tax relief programs do exist. Proposition 13 generally limits annual increases in a property’s assessed value to 2%, except when ownership changes or new construction occurs and Proposition 19 lets eligible homeowners 55 or older, severely disabled residents, or wildfire and disaster victims transfer their taxable base-year value to a replacement home.
Additionally, a Homeowners’ Exemption provides a $7,000 reduction in assessed value for an owner-occupied residence, and disabled veterans may qualify for a separate exemption. Seniors and blind or disabled homeowners who meet income and equity requirements can also apply through the state’s Property Tax Postponement program, which allows them to defer current-year property taxes, though the deferred amount must eventually be repaid and a lien is placed on the property in the meantime.
Residents who believe they’ve received a fraudulent solicitation should not provide personal information or send money, and should report the matter to law enforcement or the appropriate consumer protection authority.
Suspected scams can be reported to the Los Angeles County Department of Consumer and Business Affairs at (800) 593-8222 or dcba@dcba.lacounty.gov, or online at dcba.lacounty.gov.
