Profile picture for NancyJL

Are property taxes based on selling price or assessed value?

  • September 05 2009 - Capitola
  • 0
    0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Be a Good Neighbor. Be respectful and on-topic. No spam or self-promotion! See our Good Neighbor Policy.

Answers (5)

Profile picture for Trinidad.Gaeta
Rose Marie had that best explanation to the California rule when it comes to property taxes. 1.25% of the sales price is more of a rule of thumb.

Good Luck,

Trinidad
  • October 11 2010
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

In the State of California, property taxes since 1978 with Proposition 13 are based on 1% of the Purchase Price, and are then adjusted annually at 2 % oof the original tax.  For example, a home that sells for $300,000 will have a Prop 13 tax of $3000.  However, local taxes for schools, infrastructure, etc. are added to the "base" tax.  The next year, the $3000 tax goes up by2% to $3060, and each year increases by 2% UNLESS, values decrease, as they have recently due to recent foreclosures.  If the Assessor reduces the taxes, they cannot be raised or increased higher than the base amount plus its annual increase. (This is a simplistic explanation, and every County Assessor is very helpful in explaining the laws governing property taxes.)  Proposition 13 is designed to increase taxes when a property sells.  If a property does NOT sell, it will remain at a lower level.  So, it is common to see homes in the same neighborhood, with wide variances in taxes.
  • October 11 2010
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

The answer is either. When a house sells, the property taxes will usually be based on that as the fair market value of the home, if it's an "arms-length" transaction. If the sales price is based on distressed sellers or a sale between friends or relatives, the assessor can still assess it at a value they feel appropriate. In another scenario, with recent drops in value a house that sold for $750,000 (for example) 3 years ago may be re-assessed for less if the assessor feels it has lost value. Here in Santa Cruz County, they have been pretty diligent about re-assessing, but you can also request it if that hasn't happened. If you'd like info about how to do that, go to the Assessor's office or website, or e-mail me via my website http://YourHomeInSantaCruz.com and I'll send you what I've provided my clients in such a situation.
  • September 05 2009
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for wetdawgs
In California, they are based on the sales price.
  • September 05 2009
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Property taxes are based on assessed value. However the assessed value can go up or down due to a recent sale and the recent sales of comparable properties.
  • September 05 2009
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.