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Property tax is levied against real estate by the government of the county in which the property
is located. When a property is sold or transferred the County Assessor determines its assessed
value for the purpose of taxation. The tax rate is applied to the assessed value to determine
the annual property tax to be paid. Tax rates vary from neighborhood to neighborhood, in the Victor Valley
it is typically around 1.25%.
In 1978 Californians voted in Proposition 13 which placed limits on how much property taxes could
increase from year to year. Upon purchasing a new home the benefits of lower taxes would be lost as the
new home was assessed at full value.
Proposition 60 permits a person over the age of 55 to sell their home, purchase a replacement of
equal or lower value and transfer the assessed value of their old home to their new home. Both homes must
be within the same county. This is a once in a lifetime exception, if either spouse has done it already then
it cannot be done again. The sale and purchase must be completed within two years and both houses must
be the owners principal residence.
Property tax assistance is available from the Franchise Tax Board if you are disabled, blind or at least 62
years of age and your total annual household income is less than $39,700. The amount of assistance is
based on income and never has to be repaid.
Property taxes may be paid in two installments. The first installment is due on November 1 and it becomes
delinquent on December 10. The second installment is due on February 1 and becomes delinquent on April 10.
When a property changes ownership, reassessment takes place immediately rather than waiting until the
standard assessment date of January 1. The new assessment may be appealed. Assuming an increase in
assessed value, the property tax that has already been paid by the previous owner is insufficient for the
remainder of the term. To make up for the deficiency one or more supplemental tax bills will be
issued depending upon the date the change of ownership occurred. The supplemental tax bill will be sent
directly to the new owner and will not be paid by the lender even if the lender is paying the regular
property tax bill by means of an impound account.
Download Stewart Title Report: Housing Tax Relief
There is a homeowners exemption in the form of a $7000 reduction in assessed value available just
for applying for it. The property must be the principal residence as of March 1. The homeowners exemption
should be applied for between January 1 and April 15. It is also possible to claim the homeowners exemption
on the supplemental assessment provided that it was not already in effect with the previous owner.
Special assessments may be levied to cover the cost of local improvements, for example sewers.
These are included on your property tax bill but they are not subject to the provisions of proposition 13.
Another type of assessment is called Mello-Roos. These assessments are levied by a Community
Facilities District, their purpose is to fund infrastructure needed before a development is built (such
things as water, sewage, drainage and electricity). The Mello-Roos assessment is collected along with the
general property tax but is not subject to Proposition 13 limitations. It remains in effect until the underlying
bond is paid off.
Download Stewart Title Report: Understanding Mello Roos
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