Proposition 13, passed by California voters in 1978, profoundly altered the state’s property tax system. As the California State Board of Equalization clarifies, Prop 13 backdated the assessed values of real properties in California for their 1975-1976 degree. The contentious measure limits the land tax rate to 1 percent of a property’s assessed value. Prop 13 also limits how much a property’s assessed value can grow annually to the lower of 2% or the state’s inflation rate. It’s tough to have a room filled with Californians to agree on the virtues of Prop 13, but many share the belief it made land taxes simple to calculate.
Contact the county assessor’s office to determine the specific property tax levy on your county. As the San Francisco Office of the Treasurer and Tax Collector points out, this number could be greater compared to 1 percent countywide limit. Voter-approved improvements into the property tax attract the speed up slightly in many counties. In San Francisco, for instance, the 2009-2010 property tax rate is 1.159 percent.
Ask your mortgage document or a different product that reveals the cost of your home. As the Board of Equalization notesan ownership change effectively raises or lowers the tax on a home, since it’ll be taxed on its fair market value when you buy it. Each year thereafter, however, the assessed value of your house can only increase by the inflation rate 2 percent, whichever is lower, due to Prop 13.
Your home’s cost by the property tax rate of your county. If you bought a house with a fair market value–the price you paid–of $895,000 in San Francisco, multiply $895,000 by 0.01159. Your yearly property tax in this instance is 10,373.05.