California Property Taxes

California Property Tax Laws and Regulations

Proposition 13 passed in 1978, limits the property tax rate to 1% of assessed value plus amounts required to repay any assessment bonds approved by the voters. Annual increases to the assessed value are limited to the inflation rate or 2%, whichever is less. There have been numerous propositions refining the details of Proposition 13.

Proposition 8:

If the tax assessment is reduced because of a decline in value, the property assessment can climb as quickly as the assessed value in the future until it reaches the Proposition 13 value.

Proposition 19:

If a person is 55 years or older, has severe disabilities, or lost a home in a natural disaster, the person may transfer their tax assessment up to three times anywhere within the state and even to a property of greater value, within two years of the sale. If a child or grandchild) inherits real property and uses it as the child's primary residence, then up to $1 million of the reassessed value will be excluded from the new property-tax basis. If the inherited property is not used as the primary residence, the property is reassessed. The transfer to a grandchild is allowed only if the grandchild's parents are deceased.

Please see more details on CAR's California Proposition 19 analysis.

Proposition 60:

This applies to transfers within one county.

Proposition 90:

This applies to transfers between two different counties, both of which must have ordinances allowing the transfer.

Proposition 110:

If a person has transfered their tax assessment based on age they may later do a second transfer based on disability. If a transfer has been done based on disability, age can not be used as the basis for a later transfer.

Additional California Property Tax Information

Please see the California State Board of Equalization website at http://www.boe.ca.gov/proptaxes/prop-tax-rules.htm

Santa Clara County Property Taxes

The property tax for a home in Santa Clara County can be estimated by multiplying the purchase price by 1.25%. The property tax is 1% but there are typically 0.25% special assessments added.

To find which special assessments a property is currently subject to, go to:
https://payments.scctax.org/payment/jsp/currentSecured.jsp

Find the property you are interested in, then click the link under the column heading APN Suffix.

Santa Clara County publishes the special assessment tax rates at:

https://www.sccgov.org/sites/controller/property-tax-apportionment/Documents/annual-levy-amounts-FY2019-20-20191003.pdf

https://www.sccgov.org/sites/controller/property-tax-apportionment/Documents/tax-rate-book-FY2019-20.pdf (see pg A4)

San Mateo County Property Taxes

One of the best summaries about San Mateo County property tax programs is at
https://www.smcacre.org/tax-saving-programs

Other California Property Tax Programs

California Williamson Act Program

The Williamson Act, also known as the California Land Conservation Act of 1965, enables local governments to enter into contracts with private landowners for the purpose of restricting specific parcels of land to agricultural or related open space use. This does not affect most Silicon Valley home purchasers but it may be of significant value to people wanting to have a significant vineyard, orchard, or garden to provide income as they approach or enter retirement. By entering a contract with local governments specifying they will not convert their land to development for housing or commercial buildings, significant property tax reductions might be achieved. Please visit my post at blog williamson-act-property-taxes for more details.