www.hjta.org/faq.htm#I%20just%20got%20my%20property%20tax
I recently bought my home and just got a supplemental assessment n otice. Proposition 13 is just as important today as it was 20 years ago when it tamed a runaway property tax system that was forcing people from their h omes. Proposition 13 gives today's homeowners security by providing predictabil ity in taxes. It establishes a uniform statewide property tax rate of on e percent (1%), with a two percent (2%) cap on future annual property ta x increases. And regardless of when they bought their property, all property owners ar e protected by Proposition 13. When property changes hands it is reasses sed at current market value, but the rate remains at one percent and the new buyer is protected by the same two percent cap on future annual inc reases. Under Proposition 13 new buyers know exactly what their taxes will be nex t year, in five years, in 30 years ? important information for those who plan to live in their homes when they retire. While Proposition 13 has become synonymous with property tax limits, it i s a complete package designed to check arbitrary tax increases at the st ate and local level. Proposition 13 requires a two-thirds vote of the Le gislature to increase state taxes, and, supplemented by Proposition 218, the Right to Vote on Taxes Act passed in 1996, it requires voter approv al of all new local taxes. Proposition 60, approved by California voters in 1986, allows seniors age 55 and older to transfer the base year value of their home when they se ll that home and buy another of equal or lesser value in the same county , and meet other conditions specified in the law. The following conditions must be met for tax relief to be granted under P rop. The replacement dwelling must be of equal or lesser value (sales price) t han the original property. The replacement dwelling must have been acquired or newly constructed on or after November 6, 1986, and within two years of the sale of the origi nal property. Proposition 90, approved by California voters in 1988, extends the transf er of assessed valuation to moves into other counties within the state. However, each county's Board of Supervisors must pass an ordinance adopt ing the provisions of Prop. As of July of 2004, the State Board of Equalization reported eight counti es still accepting Prop. They are: Alameda, Los Angeles, M odoc, Orange, San Diego, San Mateo, Santa Clara, and Ventura. Please be aware that the County Supervisors can repeal their Prop. When we die can we leave our property to our children or our grandchildre n without them having to pay higher taxes? Proposition 58, adopted by California voters in November 1986, allow s the transfer of certain property between parents and children without reassessment. The phone number will be l isted in the County Government section at the beginning of your local te lephone directory. Proposition 193, adopted by California voters in March 1996, allows the t ransfer of certain property between grandparents and grandchildren witho ut reassessment. I recently got a Notice of Assessed Value Change from the County Assessor , but I haven't made any improvements on my property. Proposition 8, passed by California vo ters in 1978, provides for a temporary reduction in assessed value when the Proposition 13 value of a property exceeds the actual market value. The property owner is entitled to the lower of two values: 1) A proper tys Proposition 13 value, annually trended for inflation not to exceed 2 % per year; or 2) The current market value of the property as of the Jan uary 1 lien date. Your property assessment was most likely reduced some time in the past, e ither when you applied for a Proposition 8 (possible decline in value) r eview, or when the county assessor recognized declining property values and undertook a county-wide reappraisal. Once a temporary reduction in value has been granted, the assessor must review the propertys value ann ually until it is fully restored to its Proposition 13 value. County as sessors argue that the amount of increase in your notice you received ma y seem like a lot, but it can be no more than your tax would be had you not received the Proposition 8 reduction, and the Proposition 13 value o f your property had continued to increase 2% each year over the period t hat property values declined. On the other hand, the plain language of Proposition 13 is fairly clear. That language states that in no one yea r may your assessed valuation increase more than 2%. HJTA will monitor this issue in case a published Court of Appeal or Supre me Court decision resolves this issue. I just got my property tax bill and I think the Assessor has jumped it mo re than the 2% allowed by Prop. Your property tax bill consists of three separate categories of levies: G eneral Tax Levy, Voter Approved Indebtedness, and Direct Assessments. Co mpare your current bill to last year's bill and determine where the chan ge is. It may be that a new bond or assessment appears on the bill this year that was not on the bill last year. This tax is limited to a maximum of 1% of the assessed value of your property (the "land" and "improvements"), and can be no more than 2% greater than the previous year's tax bill. The portion labeled Voter Approved Indebtedness is a levy to repay bonds approved by the voters. This amount varies greatly from county to county depending upon the number of local bond issues approved. Under current law, local general obligation bonds require a two-thirds majority vote t o pass,except for Proposition 39 school bonds, which require only a 55% majority to pass. The portion of the bill labeled Direct Assessments is now controlled by P roposition 218. Assessments now require a majority "YES" vote of the pro perty owners, with each owner voting the dollar amount of their assessme nt. Fees charged for the property related services of sewer, water, and refuse collection can be imposed without a vote, but may not be greater than the cost of providing the service. If you believe the Assessor's valuation is incorrect you should first cal l your local office of the County Assessor and discuss your valuation wi th an appraiser. If you cannot reach an agreement with them, your next s tep is to file an appeal with the Assessment Appeals Board in your count y You will find their phone number listed in the County Government sect ion of your local telephone directory. Please be aware that there is a l imited window of opportunity to file an appeal; What you most likely received was a notice of intent to form an assessmen t district. Because Proposition 218 was approved by California voters in November 199 6, property owners in California are now better protected against assess ments than before. The notice of the proposed assessment must incl ude a ballot, which the property owner completes and returns to the agen cy or its designated agent. Each property owner is voting the dollar amo unt of their assessment. Only the ballots that are actually returned can be counted, and a majority must be in favor for the assessment to be im posed. You may or may not have received notification by mail -- many assessment districts only printed a notice in the legal section of the local newspaper -- an d you had only the right to protest the assessment. If you did not send a written protest your silence was considered a "YES" vote. Furthermore, even a majority protest could be overridden by a four-fifths vote of th e agency imposing the assessment. Now, if you do not return the ballot, they cannot count you as voti ng "YES", as they did in the past, and the ballots cannot be overruled b y the agency seeking to impose the assessment. By collecting the sign atures of 5% of the number of people in the local district who voted in the last election for Governor, you can put any locally imposed levy to a vote. I've been retired for many years and my only income is Social Security, b ut the tax on my home is still going up and it's harder each year for me to pay it. You may qualify for the State's property tax postponement or property tax assistance programs for people who are blind, disabled, or 62 years of age or older. If your annual in...
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