Do property taxes go up every year? In this video, I discuss prop 13 and how it limits the tax rate for Real Estate in California. I also discuss how Proposition 13 restricts annual increases of real property to an inflation factor,which is the change in the California Consumer Price Index, not to exceed 2 percent per year.
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What is Prop 13?
Proposition 13 was approved by California voters in June of 1978 and limits the tax rate for real property (real estate) to 1% of the full cash value of such property. In layman’s terms, this keeps your property taxes from adjusting each year to the value of the home and instead limits the annual increases to a maximum of 2% per year.
Can you transfer your Prop 13 taxes to another property?
The simple answer is yes, you can transfer your property tax to another home assuming you meet the eligibility requirements. The main requirement is that you are 55 years of age or older and that the home is your primary residence. There are other requirements as well.
What is Prop 60?
Proposition 60 (Prop 60) allows homeowners who are 55 years of age or older to sell their primary residence and transfer the base year value of that property to a replacement residence if certain conditions are met.
What is Prop 90?
Proposition 90 allows homeowners 55 years of age or older to transfer the base year value of their principal residence in one county to a newly purchased or constructed replacement residence in another county. Only a limited number of counties participate in Proposition 90.
Do property taxes go up every year in California?
Traditionally property taxes goes up each year by the allotted 2 percent as long as property values are trending up. Prop 13 restricts more than a 2 percent increase each year.
If you have questions, please comment below or contact me directly by going to www.jebsmith.net. Thanks for taking the time to watch.
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