How to Read Your Property Tax Bill

property taxThanks to Proposition 13, property tax bills are less scary in California than they are in a lot of other states. Homeowners in Illinois and New Jersey, just to cite two examples, have been known to let out a blood-curdling scream when they open the tax collector’s envelope that would be right at home on the soundtrack of a Jamie Lee Curtis movie.

Proposition 13 limits increases in a property’s assessed value to 2 percent per year and provides property owners with a pretty good idea of what their tax bill will be before they open the envelope.

Still, there can be some surprises. Taxpayers should understand the various charges and check the tax bill to make sure they’re not being assessed for more than they’re legally obligated to pay. It’s a good idea to compare each year’s tax bill to the previous year’s bill.

For most California counties, the property tax bill will show three categories of charges. They are the General Tax Levy, Voted Indebtedness and Direct Assessments.

The General Tax Levy is what most people think of when talking about property taxes. It is based on the assessed value of land, improvements and fixtures. This charge usually makes up the largest part of the tax bill and it is the amount that is limited by Proposition 13.

The annual increase in the General Levy of Assessment should be no more than 2 percent, unless there have been improvements to the property, like adding a room to the house. However, if a property received a “reduction in value” reassessment under Proposition 8, the taxable value may go up more than 2 percent to reflect the recovery in the market value. But in no case will the taxable value be more than the initial Prop. 13 base year plus 2 percent annually from the date of purchase.

If homes like yours are selling for less than the valuation on your current bill, contact your county assessor and ask for an adjustment to reflect the actual market value.

The second category of charges is Voted Indebtedness. …

Click here to read the full article from the Los Angeles Daily News

Comments

  1. I know that I don’t understand my prop tax bill. Can’t seem to understand why I’m paying for two school bonds for a different county than the one I live in.

  2. Mr. Pickle says

    Yup, School Bonds are UP this year, and Prop 39 caused harm to the TAXPAYERS by lowering 2/3 Majority Vote to 55%, thus less people to enable more debt on Taxpayers………… A school where I live is doing this, and includes computers and stuff. Hmmm, thing we we be paying for those computers for 20 years…….. a NO effort shown to secure monies for black mold, unsafe electrical, etc………. but new ball fields. Grrr.

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