Frequently Asked Questions

My assessed value went up more than 2%. Doesn't Prop 13 keep it from increasing more than 2% a year?

The 2% increase is calculated from the Prop. 13 base value. Due to Prop. 8., your value may be well below this amount. The 2% cap will go into effect when your assessed value equals or surpasses the Prop. 13 value. Please see the article below to get a better understanding of this concept. [PDF version of this article here.].

How property values are assessed

California's Proposition 13 caps the growth of a property's assessed value at no more than 2 percent a year unless the market value of a property falls lower. When that happens, Proposition 8, which also passed in 1978, allows the property to be temporarily reassessed at the lower value. However, as the value of the property rises, the assessed value and resulting property taxes may increase more than 2 percent a year up to the annually adjusted Prop. 13 cap.
a graph illustrating the effect prop 8 and prop 13 have on assessments Click for a larger image

What is Proposition 13?
Proposition 13, passed in 1978, established the base year value concept for property tax assessments. Under Proposition 13, the 1975-1976 fiscal year serves as the original base year used in determining the assessment for real property. Thereafter, annual increases to the base year value are limited to the inflation rate, as measured by the California Consumer Price Index, or two percent, whichever is less. A new base year value, however, is established whenever a property, or portion thereof, has had a change in ownership or has been newly constructed. Under Proposition 13, the property tax rate is fixed at one percent of assessed value plus amounts required to repay any assessment bonds approved by the voters.

Reference: Section 2 of Article XIII A of the California Constitution.

What is Proposition 8?
Proposition 8 requires the county assessor to annually enroll either a property’s adjusted base year value (Proposition 13 value) or its current market value, whichever is less. When the current market value replaces the higher Proposition 13 value on the assessor’s roll, that lower value is commonly referred to as a "Prop 8" value.

Although the annual increase for a Prop 13 value is limited to no more than two percent, the same restriction does not apply to values adjusted under Prop 8. The market value of a Prop 8 property is reviewed annually as of January 1; the current market value must be enrolled as long as the Prop 8 value still falls below the Prop 13 value. Thus, any subsequent increase or decrease in market value is enrolled regardless of any percentage increase or decrease. When the current market value of a Prop 8 property exceeds its Prop 13 value (adjusted for inflation), the county assessor reinstates the Prop 13 value.

Reference: Section 2(b) of Article XIII A of the California Constitution and section 51 of the Revenue and Taxation Code.

I plan to add another room on my home. Will you reappraise my entire property?

No. Only the value of your new addition will be added to your current assessed value.

If I get married and add my spouse as Joint Tenant on the deed to my property, will my property be reappraised?

No. An interspousal transfer is not reappraised.

I added a bedroom and did the work myself. Will I only be assessed on the cost of the materials?

No. New construction is assessed at the market value added to the property.

I just bought a house from my brother. Will I be assessed on the price I paid?

Not necessarily. Real property is valued at its current market value at the time it changes ownership. In a majority of cases, the sales price equals market value, but not always.

If I sell my boat after January 1st, am I responsible for the taxes?

Yes you are. The lien on ownership and the responsibility for the taxes is established on January 1st for the following tax year beginning July 1st.

Why did I receive a supplemental assessment?

Supplemental Assessments are value adjustments required by law when a property changes ownership or undergoes new construction. Watch the video below or visit our Supplemental Assessments section for more detail.
For more information about supplemental assessments, visit the California Board of Equalization's FAQ on Supplemental Assessments.
.

What is Proposition 8? What is Proposition 13?

[PDF version of this article here.].

How property values are assessed

California's Proposition 13 caps the growth of a property's assessed value at no more than 2 percent a year unless the market value of a property falls lower. When that happens, Proposition 8, which also passed in 1978, allows the property to be temporarily reassessed at the lower value. However, as the value of the property rises, the assessed value and resulting property taxes may increase more than 2 percent a year up to the annually adjusted Prop. 13 cap.
a graph illustrating the effect prop 8 and prop 13 have on assessments Click for a larger image

What is Proposition 13?
Proposition 13, passed in 1978, established the base year value concept for property tax assessments. Under Proposition 13, the 1975-1976 fiscal year serves as the original base year used in determining the assessment for real property. Thereafter, annual increases to the base year value are limited to the inflation rate, as measured by the California Consumer Price Index, or two percent, whichever is less. A new base year value, however, is established whenever a property, or portion thereof, has had a change in ownership or has been newly constructed. Under Proposition 13, the property tax rate is fixed at one percent of assessed value plus amounts required to repay any assessment bonds approved by the voters.

Reference: Section 2 of Article XIII A of the California Constitution.

What is Proposition 8?
Proposition 8 requires the county assessor to annually enroll either a property’s adjusted base year value (Proposition 13 value) or its current market value, whichever is less. When the current market value replaces the higher Proposition 13 value on the assessor’s roll, that lower value is commonly referred to as a "Prop 8" value.

Although the annual increase for a Prop 13 value is limited to no more than two percent, the same restriction does not apply to values adjusted under Prop 8. The market value of a Prop 8 property is reviewed annually as of January 1; the current market value must be enrolled as long as the Prop 8 value still falls below the Prop 13 value. Thus, any subsequent increase or decrease in market value is enrolled regardless of any percentage increase or decrease. When the current market value of a Prop 8 property exceeds its Prop 13 value (adjusted for inflation), the county assessor reinstates the Prop 13 value.

Reference: Section 2(b) of Article XIII A of the California Constitution and section 51 of the Revenue and Taxation Code.

What about fire or flood damaged property?

Disaster Relief

Disaster Relief

Under R & T Code §170
California law provides property tax relief for property owners whose property was damaged or destroyed due to a calamity. This property tax relief is available to owners of real property, business equipment and fixtures, and to owners of aircraft, boats or certain mobile homes.
To be eligible for this relief, the damage caused by the calamity must exceed $10,000 (market value) and must have been caused by a misfortune or calamity, not the fault of the property owner. To be considered, an application for reassessment must be submitted to the Assessor's Office within 12 months from the date the damage occurred.
Please complete and submit an application to the Assessor’s Office if you feel your property qualifies for a reassessment due to a recent calamity.
Click here for application- G-144
Please note that if you rebuild an equivalent structure in a timely manner, the property will retain its previous value for tax purposes.

Proposition 19 (operative April 1, 2021)
Claim for Transfer of Base Year Value to Replacement Primary Residence for Victims of Wildfire or Other Natural Disaster
Proposition 19 allows a homeowner, whose primary home is damaged by a wildfire or natural disaster, to transfer the base year value of that home to a new home that is acquired or newly constructed within two years of the sale of the original home. To qualify for relief, the damage to the original primary residence must be 50% or greater. The replacement home may be located anywhere in California and be of any value. If a replacement home is of greater market value than the damaged home just prior to damage, the difference in the full cash value between the replacement and original homes must be added to the transferred base year value of the original home.
Click here for application-BOE-19-V

I just received a Notice of Assessment Reduction from the Assessor’s Office. When will I receive a corrected tax bill or refund?

Corrected tax bills are mailed by the Tax Collector’s Office. If you have not received a corrected tax bill within ninety (90) days of the date of your Notice of Assessment Reduction, you may contact the Tax Collector at (209) 525-6388. Be aware that penalties incurred while you are waiting for a revised bill may not be forgiven. Therefore, unless you receive a revised bill, we recommend that you pay the tax bill you have by the due date shown. If this results in a net overpayment, the Auditor will send you a refund.

Refunds are processed by the Auditor and normally done within thirty (30) days of the date when the Assessor’s certifies the reduction. If you are due a refund and would like to check on the status of a refund, contact the Property Taxes & Assessment Division of the Auditor-Controller’s Office at (209) 525-6597.

I just received a Notice of Proposed Escape Assessment. When will I receive a corrected tax bill?

This notice informs you that value has escaped the assessment roll. You can expect a bill within ninety (90) days from the date of your Notice of Proposed Escape Assessment. If you have not, you may contact the Tax Collector’s Office at (209) 525-6388.