How are your property taxes calculated?

One of the main expenses to consider when purchasing a new home are the property taxes you will pay every year as the owner.  But how do you know how much to budget for?

Thanks to the passage of Proposition 13 in 1978, all California property taxes are now assessed at 1% of the purchase price.  Each year thereafter, tax increases are limited to no more than 2% per year.  When a property is sold, it is then reassessed at market value (the sales price), but the rate remains at 1% of this sales price and the new owner is protected by the 2% cap on annual increases.

Exceptions to the 2 percent cap rule: There are exceptions to the 2% cap on annual property tax increases, including:

A. If the property is sold to a new owner.

B. If additions or major remodeling enhances the value, then the tax assessor can increase your property-tax basis. Presuming that you got a building permit, the building department will notify the assessor of the addition and the assessor will increase your tax assessment accordingly. The increase will show up in future tax bills, prorated from the date of completion. There may be one supplemental tax bill depending on when the date of completion falls within the tax year.

In order to determine the full amount of your tax bill, use the simple formula depicted below:

If you would like to know how much the voter approved bonds, Mello-Roos fees (if there are any), and special assessments are for a particular property, contact me directly at (760) 420-8642 or michelle.schwartz@coldwellbanker.com and I will get this information for you.

Property Taxes in San Diego

As the latest due date for San Diego property taxes has passed and the delinquency date draws nearer (with just over a month away), I figured this would be a good time to provide information about property taxes.  

The fiscal tax year runs from July 1st to June 30th of the following calendar year.  In late September & October, the Treasurer-Tax Collector mails out original secured property tax bills.  On the secured tax roll, the first installment is due November 1 and delinquent after December 10, and the second installment is due on February 1 and delinquent after April 10.  Taxpayers have the option of paying both installments when the first installment is due.  Penalties will not be waived due to not receiving a bill.

Keep in mind that as a new property owner, California law requires that you be responsible for the timely payment of taxes on your property. DO NOT WAIT TO BE NOTIFIED or expect receipt of a tax bill. None may be forthcoming. Make it a matter of your personal attention and responsibility to find out what taxes are due and owing by you, as required by law. 

To search the status of your tax bill and/or pay your bill online, go to the county assessor's website at http://www.sdtreastax.com/pay.html.  Please note that if you would like to pay using a credit card on their site, they charge a convenience fee of 2.25% for processing.

If you have any questions or would like more assistance with your tax bill, feel free to email me at michelle.schwartz@coldwellbanker.com.