The California Homeowner's Essential Guide to Property Tax Reduction and Appeals

Introduction: Navigating Proposition 13 and Your Property Taxes

As a California homeowner, your relationship with property taxes is uniquely governed by Proposition 13. While this landmark law limits how much your property taxation can increase annually, many homeowners still overpay due to flawed initial assessments or missed exemptions. This comprehensive guide helps all California property owners understand how to check their property taxes online and execute a successful property tax appeal.

Section 1: Understanding California's Unique Property Tax System

California's property tax system is distinct from other states. Proposition 13, passed in 1978, limits property taxes to 1% of the assessed value and restricts annual increases to 2%.

1.1 How Prop 13 Affects Your Taxes

• Base Year Value: Your property's assessed value is established at the time of purchase.
• Annual Increase Cap: The assessed value can only increase by up to 2% per year.
• Reassessment Triggers: New construction or change of ownership triggers reassessment to current market value.

Section 2: When and How to Appeal Your Assessment

Even under Prop 13, there are opportunities to reduce your property taxes. If your property value has declined below its Prop 13 factored base year value, you may qualify for temporary relief.

2.1 Proposition 8 Decline-in-Value

Prop 8 allows for temporary reductions when market value drops below your assessed value. This is particularly relevant during market downturns.

Section 3: California-Specific Exemptions

• Homeowner's Exemption: Reduces assessed value by $7,000, saving approximately $70 annually.
• Senior Citizen's Exemption: Additional relief for qualifying seniors.
• Disabled Veterans Exemption: Significant reductions for qualifying veterans.