Due to deflation it is expected that most Californians will see their property tax fall next year.
This would mark the first property tax cut since Prop. 13 was implemented 30 years ago.
The reduction will more than likely cut revenue for cities, counties and schools by hundreds of millions of dollars – even though the expected reduction for homeowners would be small. A reduction of just $7 for a home assessed at $250,000. The cuts would affect tax payments due in December 2010 and April 2011.
In the past 31 years State officials have set the inflation rate at less than 2% just five times. Preliminary estimates released Monday state that California will have a negative inflation fact, or deflation, of 0.237% this year.
Taxes may still rise for property owners who recently purchased homes or buildings that had their taxes reduced due to falling values.
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