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Today I will be going over California property taxes and a few different tax propositions in order for you to save more money on taxes.
Property Taxes: The Basics
-You can choose to have your property taxes built in to your monthly mortgage,
where you would not need to worry about paying these bills by the deadline.
-However, if you have not had your taxes impounded into your mortgage,
you have two separate installments that you can pay your taxes with.
-The first installment occurs from November 1st to December 10th every
year.
-The second installment occurs from February 1st to April 10th.
-Be sure to pay these on time to avoid any late-fee penalties.
California Tax Propositions...
There are a number of different tax propositions in California, and many of them aim to protect the citizens of our state from paying taxes that are simply too costly for home owners to afford.
Proposition 13:
-This is the most popular, and it forbids a reassessment of your home unless
there was a change of ownership or some type of new construction
occurred on your property.
-This was passed in 1978 as a result of a tax revolt by the citizens of California.
The story is that home values were escalating very rapidly, and properties were
being assessed every four years. Home owners began noticing that because
of the rising value of their homes, their taxes were doubling, even
tripling, every three years.
-Finally home owners became fed up, and Proposition 13 went into effect
which capped the maximum increase in property taxes to 2% each year.
-This 2% increase is also tied to inflation which is calculated by
going over the California Consumer Price Index.
-Proposition 13 also helps local governments to plan their budgets
accordingly because with this legislation they can make an educated
guess about what their tax revenues might look like.
-Here is more information on Proposition 13:
http://ocgov.com/gov/assessor/realproperty/prop13
Proposition 60:
-Another popular proposition that many of our clients have used.
-You have to be 55 years old to gain these benefits, but it can help you if you
currently have a low tax base and are looking to transfer it to a new property that
you're thinking about buying and moving into.
-This is meant to help aging parents whose children have moved out of a home
and are now deciding to downsize. However, the worry is that they will not
be able to afford the taxes on a new property.
-This is a one-time offer and the purchase of your next home must have the
same market value as the one that you're currently occupying. Usually this
can only take place within the same county, so be sure to do some research
or check with your local assessor before you make this important transition.
-You are allowed a second transfer under this Proposition, but this is
only allowed if you're permanently disabled. For example, if you've
used proposition 60 to buy a new 2-story home, but for some reason you
become permanently disabled and cannot gain access to the entire
property, then you could qualify for a 2nd transfer (with a doctor's
certification). The same rules apply, though. The homes must be of the
same market value and in the same county.
-For more information on this Proposition visit:
http://assessor.lacounty.gov/extranet/guides/prop6090.aspx
-There is also more valuable information here:
http://ocgov.com/gov/assessor/programs/55plus
If you have any more questions about these issues I would be more than happy to help you out. I have also listed the contact information for county assessor's offices below. Once again, if you know anyone that is looking to buy or sell real estate in the Orange County area, please have them give me a call at (626)-780-2705 or email me at FDelRio@live.com
