Property Taxes

When You Purchase
When you purchase a home, the county tax assessor reassesses the property and sets a new property tax amount based on your purchase price. Your property taxes will be approximately 1% of your purchase price, plus any voter approved bonded indebtedness of the community.  Mello Roos is among these common assessments.  This is an additional amount per year added to your tax bill. Another common item is pest abatement this amount could add about $4-10 per year; Or a bond for a sewer district which can be approx. $200 per year.

Thereafter
In future years, the tax assessor is allowed to increase the accessed value by 2% appreciation per year.

Homeowner's Exemption
This is a deduction of $7,000 from the "accessed value" and applies only to owner-occupied properties. Once you've purchased a home you will receive a card to fill out to apply for the exemption. The card must be completed and returned between March 1st and April 15th. Applications submitted after April 15th, but before the end of the year will qualify for only 80% of the exemption.

Supplemental Tax Bill
Boy does this one cause problems. Yes, the tax assessor reassesses the property when it is sold, but they don't always get the new tax bill amount "into the system" as it were and the first tax bill that many buyers receive is one that reflects the rate for the previous owner. So you get this bill, think "wow" the taxes aren't as high as I thought; you pay the bill; send it off and think you are done!  Nope. Expect that you will get another tax bill, this one called the Supplemental Tax Bill. It will cover the difference between the old rate (which you already paid) and the new rate (which you really owe).

EXAMPLE: $250,000 purchase price

YEAR 1
$250,000 less $7,000 Exemption = $243,000
$243,000 x 1% = $2,430 tax bill (plus any special bond assessments)

YEAR 2
$250,000 plus 2% appreciation = $255,000
$255,000 less $7,000 Exemption = $248,000
$248,000 x 1% = $2,480 tax bill (plus any special bond assessments)

YEAR 3
assume you add on a new bathroom valued at $15,000
$255,000 plus 2% appreciation = $260,100
$260,100 plus $15,000 addition = $275,100
$275,100 less $7,000 homeowners exemption = $268,100
$268,100 x 1% = $2,681 tax bill (plus any special bond assessments)

YEAR 4
$275,100 plus 2% appreciation = $280,602
$280,602 less $7,000 homeowners exemption = $273,602
$273,602 x 1% = $2,736 tax bill (plus any special bond assessments)

If you now sold your house for $300,000, the property tax bill for the new owner would be based on the $300,000 purchase price.

 Click Here For A Tax Chart

 

This information contained herein is designed to provide accurate and authoritative information in regard to the subject matter covered. It is given with the understanding that the author is not engaged in rendering legal service. If legal advice or other expert assistance is required, the services of a competent legal advisor should be sought.