When it comes to property tax each state is different, each county within the state can be different. As a lifelong CA Realtor, I only know what I hear from clients and associates about property tax rates in other areas of the country. To hear about other states with 3% or 4% property taxes it always takes me by surprise. It seems CA got this issue right back in the 1970's when proposition 13 was passed.
Under Proposition 13 tax reform, property tax value was rolled back and frozen at the 1976 assessed value level. Property tax increases on any given property were limited to no more than 2% per year as long as the property was not sold. Once sold, the property was reassessed at 1% of the sale price, and the 2% yearly cap became applicable to future years. This allowed property owners to finally be able to estimate the amount of future property taxes, and determine the maximum amount taxes could increase as long as they owned the Property.
Proposition 13 states that a home’s tax amount cannot exceed 1% of it’s assessed value with some exceptions.
Occasionally we will hear a proposal out of Sacramento to change this but , not surprisingly CA homeowners much prefer the 1% cap. I can't see anyone getting a change to this proposition passed anytime soon.
Recently some new propositions were passed that help seniors transfer thier favorable tax rate to a new property due to the higher cost of homes these days. I feel that this is an important step in helping retired people continue to afford their own home. It has helped quite a few of my own clients.
Does anyone live / work in a county that has a higher property tax rate than 3%?
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