Real property Assessments / Proposition 13

Real Property Assessments

The California Constitution requires that all property be taxed, unless otherwise exempted under the California Constitution or United States Constitution. Article XIII-A of the California Constitution requires that real property be reappraised only when such property undergoes a change of ownership or has new construction.

The assessment roll, and tax bills, show land values and improvement values. "Improvements" include buildings or anything of a structural nature (such as swimming pools, paving, etc.). When you have an "improvement" value, it doesn't usually mean that you have recently "improved" your property.

Proposition 13

This was passed by the voters in June, 1978 and subsequently changed the taxation of real property in California. As a result :
* The average tax rate is approximately 1.25 %
* Real property is reappraised only when:
1) Change in ownership occurs
2) New Construction is completed.
3) New construction is partially completed on the lien date (Jan. 1); or
4) A decline in value (from Prop 8) *

* Except for these four instances, real property assessments cannot be increased by more than 2% annually, regardless of the rate of inflation.


Change of ownership Reappraisals

When a publicly recorded transfer occurs, the Assessor generally receives a copy of the deed and determines whether a reappraisal is required under state law. If it is required, an appraisal is made to determine the new market value of the property. The property owner is notified of the new assessment. The property owner has the right to appeal the value, if he/she does not agree with it.

The transfer of property between husband and wife does not cause a reappraisal for property tax purposes. This includes Transfers resulting from divorce or death. Also, the addition of joint tenants, whether related or not, does not result in a reappraisal. There are other exclusions.


New Construction Appraisals

Copies of building permits are sent to the Assessor's Office by the cities and County. New buildings, additions, and other structures require an appraisal. Structural repairs, replacement, or maintenance are not approachable in most situations.

We appraise new construction and add it to the existing land or improvement assessed value. Thereafter the new assessed value does not change except for the annual 2% trend.

See the complete brochure in the adobe 'acrobat' format here.