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Answers (5)
- Trinidad Gaeta, "Trinidad.Gaeta"
- Contributions:240
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
Good Luck,
Trinidad
- McNair Rose Marie, "really realrose"
- Contributions:16
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.
- Curt Abramson, "Curt Abramson"
- Contributions:120
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.
- wetdawgs
- Contributions:26790
In California, they are based on the sales price.
- Michael Emery, "MikeEmery"
- Contributions:7288
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.
Are property taxes based on selling price or assessed value?
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