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If the tax rate in your community has been established at $1.08 ($1.00 base rate and .08 for prior indebtedness), the property tax would be calculated as follows:
Full cash value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $40,000
Because the rate is $1.08 per hundred
of full value, divide the rate by 100.
$1.08 100 = .0108 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . X .0108
Tax calculation: Multiply the rate times the full cash value.
Tax amount . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $432.00
The tax amount may be adjusted for any special benefit assessments, such as sewer service charges, or reduced by any legal exemption which may apply.
Under Proposition 13, real property is reappraised only when a change in ownership occurs, or after new construction is completed. Generally, a change in ownership is a sale or transfer of property, while new construction is an addition or improvement to property. Except for these two instances, property assessments cannot be increased by more than 2% annually.
Passed by the voters in June, 1978, Proposition 13 substantially changed the taxation of real property in California. As a result of this Constitutional amendment:
Change in Ownership Reappraisals
When a transfer occurs, the Assessor receives a copy of the deed and determines if a reappraisal is required under State law. If it is required, an appraisal is made to determine the new market value of the property. The property owner is then notified of the new assessment and has the right to appeal the value.
Exclusions
Some changes of ownership that are excluded from reappraisal include the following:
Copies of all building permits are sent to the Assessor's Office by the cities and County. If the construction is new (such as a room addition), a reappraisal is required. If the construction is a replacement (such as a new roof), a reappraisal is not required. In appraising new construction, the market value of the addition is determined and added to the value of the existing property. The value of the existing property does not change. As with a change in ownership, the property owner is then notified of the new assessment and has the right to appeal the value. For more information, call 454-2002.
State law requires the Assessor's Office to reappraise property immediately upon change in ownership or completion of new construction. The Assessor's Office must issue a supplemental assessment which reflects the difference between the prior assessed value and the new assessment. This value is prorated based on the number of months remaining in the fiscal year, ending June 30. This is in addition to the regular tax bill. Notices of the supplemental assessments are mailed out to property prior to the issuance of the tax bill. For further information, call 454-2002.
Unlike real property, business personal property is reappraised annually. The owners of businesses must complete a property statement, when required, detailing costs of all supplies, equipment and fixtures at each location. Business inventory is exempt from taxation. For more information, call 454-2487.
Boats and airplanes are taxable and are subject to annual appraisal. Their value is determined by reviewing the purchase price and the sales of comparable boats and airplanes. Information on their location and ownership is obtained from the Department of Motor Vehicles, the United States Coast Guard, the Federal Aviation Administration and on-site inspections. For more information, call 454-2462.
All new mobilehomes purchased after June 30, 1980, and those on permanent foundations, are subject to property taxes. As with real property, the assessed value on mobilehomes cannot be increased by more than 2% annually, unless there is a change in ownership or new construction. Mobilehomes bought before June 30, 1980 are generally not subject to property taxes. They are on license fees, which are under the jurisdiction of the State Department of Housing and Community Development. They can be reached (toll free) at 1-800-952-8356.
Preliminary Change of Ownership Report
State law requires the property owner to file this form with the County Recorder when recording certain documents. If the form is not filed, the Recorder will charge an additional recording fee of $20.00. Information furnished on this form by the property owners assists the Assessor in fulfilling his legal responsibilities. It is not a public document. For further information, call 454-2002.
Change in Ownership Statement
The Assessor will use this form when the Preliminary Change in Ownership Report is either not filed or is filed incomplete. The Assessor also sends this form to owners of unique or specialized-type properties when they change ownership. State law provides for a penalty if this form is not returned to the Assessor. This form is not a public document. For further information, call 454-2002.
If you are a California veteran who is rated 100% disabled, blind, or a paraplegic due to a service-connected disability while in the armed forces (or if you are the unmarried widow of such a veteran), you may be eligible for an exemption of up to $150,000 off the assessed value of your home. For more information, call 454-2492.
Homeowners who own and occupy a dwelling on March 1, as their principal place of residence are eligible to receive a reduction of up to $7,000 of the dwelling's full cash value.
The law provides that once you file a homeowner's exemption claim and receive the exemption, it is not necessary to file each year as long as you continue to own and occupy the residence on which the exemption is claimed.
Property Tax Postponement - To be eligible, you must be blind, disabled or 62 years of age or older and have an annual income of $24,000 or less. Forms are available from the County Tax Collector. For more information, call the State Controller at 1-800-952-5661.
Property Tax Assistance - To be eligible, you must be blind, disabled or 62 years of age or older and have a total household income of $12,000 or less. Forms are available from the County Tax Collector. For more information, call the State Franchise Tax Board at 1-800-852-5711.
Review Due to Decline in Value
The Assessor's Office is required to lower the assessed value of any real property if it is higher than the current market value. Each case is reviewed individually upon request of the property owner. For more information, call 454-2002.
If a major calamity such as fire or flooding damages or destroys your property, you may be eligible for property tax relief. In such cases, the Assessor's Office will immediately reappraise the property to reflect its damaged condition. In addition, when you rebuild it in a like or similar manner, the property will retain its previous value for tax purposes.
To qualify for property tax relief, you must file a calamity claim with the Assessor's Office within six (6) months from the date the property was damaged or destroyed. In addition, the loss must exceed $5,000. For more information, call 454-2002.
Unresolved differences between the Assessor and the taxpayer over the valuation of property are handled by the Assessment Appeals Board. They consider all evidence presented by the property owner and the Assessor's Office at a formal hearing. The Appeals Board then determines the value of the property in question.
Appeals of regular assessments must be filed between July 2 and September 15. Appeals of supplemental assessments must be filed within 60 days of the supplemental notice date. All ppeal applications must be filed with the Clerk of the Board, Room 500, 701 Ocean Street, Santa Cruz 95060.
Copies of tax bills ................... Tax Collector Payment of taxes ...................... 454-2510 Special assessments (general info) .... Auditor Property tax rates .................... 454-2500 Recording deeds ....................... Recorder Title searches ........................ 454-2800
Full Cash Value - If you owned your property before March 1, 1975, the "full cash" value will be the value as it appeared on the 1975-76 assessment roll increased 2% per year in accordance with Proposition 13. If you acquired or constructed the property since March 1, 1975, "full cash" value is the value at the time you took title or completed construction, plus 2% each year thereafter.
Base Year - The assessment year 1975-76 serves as the original base year. Thereafter, any assessment year in which real prpoperty, or a portion thereof, is purchased, is newly constructed or changes ownership shall become the base year used in determining the full value for such real property, or a portion thereof.
Improvements - This is the value of any buildings or structures existing on land whether new or old. Improvements may also include certain commercial and industrial fixtures and some commercial farm plants or vines.
Newly Constructed - Means the construction of new buildings or the alteration of existing buildings, if the alteration converts the property to another use or extends the economic life of the improvements.
Personal Property - This means any property that you own other than real estate. It includes airplanes, boats, business property such as supplies, office furnishings, machinery or equipment.
Secured Property - Property on which the property taxes are a lien against real estate.
Special Assessments - Direct charges against property which are included in the total amount of your tax bill but which are not property taxes in the sense of being based on the Assessor's evaluation. A sewer service charge is an example of this assessment.
Special Taxing Districts - Property tax levying agencies ranging from Air Pollution Control Districts to Sanitation Districts.
Tax Rate - The County levies an ad valorem property tax at a rate equal to 1% of the full cash value. In addition, the rate will include an amount equal to the amount needed to make annual payments for the interest and principal on general obligation bonds or other indebtedness approved by the voters prior to July 1, 1978.
Unsecured Property - Property on which the property taxes are not a lien against real estate (office furniture, machinery, equipment, boats, airplanes, etc.). Note: Business inventory is exempt from taxation.