California’s Proposition 13, passed in 1978, defines how property taxes are calculated and reassessed.
Property taxes are calculated by multiplying the property’s tax assessed value by the tax rate.
The standard tax rate in the state is set at 1 percent, per the proposition.
Is there a cap on property tax increase in California?
On June 6th, 1978, nearly two-thirds of California’s voters passed Proposition 13, reducing property tax rates on homes, businesses and farms by about 57%. Additionally, there were no limits on increases for the tax rate or on individual ad valorem charges.
Does property tax increase every year in California?
California property taxes are based on the purchase price of the property. When you buy a home, the assessed value is equal to the purchase price. From there, the assessed value increases every year by the rate of inflation (change in the California Consumer Price Index), with a cap on increases of 2%.
Why do my property taxes go up?
Property tax bills can increase for a variety of reasons. Your local, state or federal government laws may change, causing property taxes to spike. The value of your neighborhood could rise, a sign of the real estate market starting to recover.
Photo in the article by “Naval History and Heritage Command – Navy.mil”