I recently purchased a home. Will my property taxes be the same as the prior owner’s taxes?

Maybe not; in 1994 voters passed Proposal A to help curb the fast rise in property taxes. Assessed Values are still calculated in the same way, however Proposal A created a separate value on which to base property taxes (Taxable Value). So while the Assessed Value may climb at a fast rate in accordance with the market, the formula under Proposal A “caps” the Taxable Value of a property and keeps it from growing as fast as the Assessed Value. Therefore a gap can form between the two values and the gap generally increases over time.

However, in the year following an eligible transfer of ownership, the Taxable Value is “uncapped” and made equal to the Assessed Value, but only for that year following the transfer. When a parcel is uncapped there could be a substantial increase in the property taxes for the new owner depending on the difference between the Assessed and Taxable Values of the property. As such, it’s possible for every property in your area to have different Taxable Values and different property.

Show All Answers

1. What does the Assessing Department do?
2. What is the difference between Assessed Value and Taxable Value?
3. How are my property taxes calculated?
4. How is my property value calculated?
5. Shouldn’t the Assessed Value be half of what I paid?
6. I recently purchased a home. Will my property taxes be the same as the prior owner’s taxes?
7. What is the Principal Residence Exemption or “Homestead” exemption?
8. Are there any other exemptions/reductions available to me?
9. What is a Property Transfer Affidavit?
10. What is the Real Property Statement that you mailed to me and why are you asking me for this information?
11. What if I am unhappy with my assessment?