The California Constitution mandates that all property is subject to taxation unless otherwise exempted by state or federal law. Proposition 13, enacted in 1978, forms the basis for the current property tax laws. Property taxes are based on the assessed value of your property.

Secured property taxes become a lien against real estate. Real estate includes:

• Land - vacant, mines, standing timber;
• Structures or improvements on land - your home, business/office buildings, apartments, etc.; and
• Other Improvements - fixtures, leasehold improvements, fences, fruit trees, nut bearing trees (but not growing crops), or ornamental trees and vines.

Unsecured property taxes do not become a lien against the property. Usually, unsecured taxes are levied on personal property, including, but not limited to:

• Boats and airplanes;
• Portable machinery and equipment, tools, and supplies used in businesses;
• Office furniture; and
• Any other property taxes that are not liens against the real property.

Property that is exempt from taxation includes, but is not limited to, personal household goods and personal effects, stocks and bonds, inventory items held for sale or lease in the ordinary course of business, and property used for certain purposes that qualify the property for exemption (such as non-profit organizations, public schools, hospitals, free museums and libraries, etc.).

Under Proposition 13, the general property tax rate throughout California is limited to one percent of the property's assessed value. However, due to direct levies and special assessments in some areas, the overall property tax rate may be slightly higher.

Average county-wide rates can be found in the Board of Equalization's Annual Report in the Statistical Appendix Tables, Table 14, General Property Tax Levies as Compiled for Computation of the Average Tax Rate. Information on the tax rate for a specific area within a county is available through the county auditor of that county.

Yes. Proposition 13 established the base year value concept for property tax assessments. Under Proposition 13, the 1975-1976 fiscal year serves as the original base year used in determining the assessment for real property. Thereafter, annual increases to the base year value are limited to the inflation rate, as measured by the California Consumer Price Index, or two percent, whichever is less (the "adjusted base year value"). Conversely, Proposition 8 requires the county assessor to annually enroll either: (1) a property's adjusted base year value (adjusted for inflation no more than two percent annually), or (2) its current market value, whichever is less. Thus, Proposition 8 allows for a decrease in a property's enrolled value when its current market value falls below the current adjusted base year value. In addition, the tax rate in your area can change as new bonds are added or decrease as bonds are paid off. Direct assessments can also cause an increase or decrease in property taxes as they are added or removed.

By law, the general property tax rate is limited to one percent of a property's assessed value. However, depending on the area where your property is located, there may be other charges necessary to pay off any voter-approved general obligation bonds or other indebtedness, special assessments, or direct levies. Typically, such indebtedness results in a small fraction of a percent increase in the tax rate.

Direct levies are levied on the tax bill by the county tax collector on behalf of the local levying agency or district, not on behalf of the assessor, auditor-controller, and/or the county tax collector divisions. For more information, or if you disagree with a special assessment levied against your property, you must contact the levying district directly. However, you cannot refuse to pay your tax bill that contains the direct levy amount, even if the direct levy amount is under dispute.

In addition to the general property tax levy, there may be special assessments that are collected with the tax bill. These assessments, if present, will vary depending on the location of the property. The county auditor would have further information on such assessments.

If you disagree with the assessed value of your property, you should first contact your county assessor's office to request a review of the value. If the matter is not resolved to your satisfaction, you may then file an appeal with the local assessment appeals board.

In most counties, the assessment appeals board is appointed by the county board of supervisors. In some small counties, the assessment appeals board consists of the board of supervisors itself. In either case, the assessment appeals board will determine the final value of the property.

The assessment appeals board will consider all evidence presented by the property owner and the county assessor's office at a formal hearing. Appeals of regular assessments must be filed between July 2 and either September 15 or November 30, depending on the county where the property is located. Appeals of supplemental or escape assessments must be filed within 60 days of the date of "Notice of Supplemental Assessment" or "Notice of Enrollment of Escape Assessment" or the postmark for that notice, whichever is later. County Assessment Appeals filing periods may be found on the Board's property tax website under "Hot Topics" heading. Click County Assessment Appeals Filing Periods for 20__ for the most recent schedule of appeals filing period for each county.

No. Your regular tax bill will show an improvement value and a land value only. Although not shown on your tax bill, the assessed value for your property will have more than one base year value if you have had new construction or a fractional change of ownership on the property since the original base year value was established. Only the portion that changes ownership is given a new base year value based upon its market value at the time of occurrence, or if the property had new construction, the portion that is newly constructed is given a new base year value at the time new construction is completed. In both instances, the pre-existing portion retains the original adjusted base year value. Thus, you will have multiple base year values until such time as the entire property interest changes ownership.

You may request from the county assessor the details of your tax bill showing you the breakdown of the assessed values. The assessor's records will show the breakdown of a property's base year value(s) as of the latest of the following dates: (1) March 1, 1975, (2) the date the entire property changed ownership, or (3) the date new construction was completed. A base year value is adjusted each year to reflect inflation as measured by the California Consumer Price Index, but any adjustment may not exceed two percent.

Under Proposition 13, real property is reappraised only when:

• A change in ownership occurs;
• New construction is completed; or
• New construction is in progress on January 1 (lien date).
• The adjusted base year value of a property exceeds its fair market value, the property will be reappraised on January 1 to its current market value and will continue to be reappraised at current market value each lien date thereafter until such time as the fair market value exceeds the property’s adjusted base year value (Proposition 8 value).

When a sale or transfer of real property occurs, the county assessor's office receives a copy of the deed. If it is determined that a reappraisal is required under state law, the assessor's staff estimates the market value of the property as of the date of the transfer. The owner is then notified of the new assessment and of the right to appeal the value.

The transfer of property between husband and wife does not require a reappraisal for property tax purposes. This includes transfers resulting from divorce or death. In addition, a refinancing will not cause a reappraisal. There are other exclusions from reappraisals for senior citizens, the severely and permanently disabled, and those involving parent/child transfers which are discussed in other FAQs.

Personal property, such as your boat, airplane, business furnishings and equipment, etc., is appraised annually based on its market value as of the January 1 lien date. Personal property is not subject to Proposition 13 value limitations.

An exemption is a full or partial deduction from the taxable value of property, as prescribed by law, based on the property's use or on a claimant's qualification. Some exemptions require filing a claim form, others do not. The most common exemptions that require filing a claim form are: homeowners', welfare (charitable organizations), religious, disabled veterans', church, public school, library, museum, and non-profit colleges. These various exemptions are found in the California Constitution under Article XIII, sections 3, 4, and 5.

Under Proposition 13, the county assessor is required to assess property at its current market value when a change in ownership occurs or to assess the portion of a property that is newly constructed, which usually results in an increase in property taxes. The legislature, however, has provided for a number of exclusions from the definition of a "change in ownership" or from the definition of "newly constructed." Thus, for example, even if a transaction falls under the definition of a change in ownership, an exclusion may apply and the assessor will not reassess the property because it or portions thereof would automatically be excluded from reassessment or would be eligible to be excluded from reassessment if the owner properly completes an application and timely files it with the county assessor's office. Some examples of exclusions include:

• Transfers between parents and children or from grandparents to grandchildren (Propositions 58/93);
• Transfer of the taxable value of a property to a comparable replacement dwelling for persons aged 55 and over or for a disabled person (Propositions 60/90 and 110);
• Transfers between spouses or former spouses during divorce proceedings;
• Transfers between individuals and a legal entity that result solely in a change in the method of holding title or for refinances purposes;
• Transfer of the taxable value of a property that has been damaged or destroyed by a disaster to a comparable replacement property, or the re-building of the property to its equivalence prior to the damage;
• Transfer of the taxable value of a property that was taken by eminent domain proceedings, acquisition by a public entity, or governmental action that resulted in a judgment of inverse condemnation; and
• Modifications (new construction) to an existing structure for accessibility by a physically disabled person

Publication 29, California Property Tax Overview, Sections 6 and 7, provides a brief description on types of exempt property and available exclusions from reassessment.

In each case, forms must be obtained from the assessor of the county where the property is located. You may find the appropriate contact number from our statewide Listing of County Assessors.

Some counties make forms available for download from their websites.

Note: Although many of the applicable forms are prescribed and approved by the State Board of Equalization, the forms themselves are NOT available from the Board. This is because each county assessor may customize the form in certain respects to suit the needs of his or her office.

The law states that a valid certificate issued by the State Board of Equalization (Board) must be held in order for a person to perform the duties of an appraiser for property tax purposes. Minimum requirements for a temporary certificate are graduation from a four-year college or four years of relevant appraisal experience, or a combination of the two. A permanent certificate is issued upon successful completion of an examination administered by the Board.

In addition, property tax appraisers are required to complete at least 24 hours (only 12 hours are required for advanced appraisers) of training each fiscal year to retain their certificates.

Most county assessor's offices have available to the public all property-related records, including the local assessment roll, parcel maps, indicated property sale prices and sale date, the names of the buyer/seller, and basic property characteristics. The assessment roll contains the parcel number and/or location designation; name and mailing address of the assessee; the assessed values of land, improvements, personal property and taxable possessory interests; penalties imposed; homeowners' exemption, if applied; local revenue district, and the total taxable value of all property assessed. Some counties also provide property and research information, maps, and other relevant information on their websites.

Full cash value, also known as "market value" or "fair market value," means the amount of cash or its equivalent which property would bring if exposed for sale in the open market.

A property’s "base year value," for real property assessed under Proposition 13, is the property’s full cash value as of the date of the latest change in ownership or completion of new construction.

An "adjusted base year value" is the property's base year value adjusted by an annual inflation factor, not to exceed two percent per year; also known as "factored base year value."

Taxable value is the value upon which property taxes are calculated. For most real property, this is the adjusted base year value or the property’s current market value, whichever is lower.

The assessment roll is the official list of all assessable property in the county.

The lien date is the "moment" of valuation for all property. Annually, the taxable status and value of property is determined as of 12:01 a.m. on January 1.

County assessors must value property in accordance with the California Constitution, the Revenue and Taxation Code, Property Tax Rules, and other codes that apply to property tax assessment. Board of Equalization publications that provide guidance include the Assessors' Handbook and Letters To Assessors. In addition, property tax annotations provide guidance regarding statutes and regulations as applied by Board staff.

Publication 29, California Property Tax - An Overview, provides a good overview of property tax assessment in California. The publication may be downloaded or you may purchase a hard copy of this document by calling 800-400-7115.

The full text of legislative bills as introduced and amended is available from the California Legislative Counsel’s website. The website provides information on bills for the current legislative session and prior sessions, but no earlier than 1993. Legislative bills and bills proposed earlier than 1993 can also be found at the California State Library, Law Section, 916-654-0185, or at many county law libraries and major university libraries.

There are several county departments that are involved in the property tax process. The three major departments and their property tax duties are:

The assessor link above will direct you to a listing of all 58 California county assessors’ offices. Information on how to contact other county departments, such as the county auditor/controller or county tax collector is generally available from a county assessor's website.

The property tax annotations are available on the Board’s website, which includes source documents for specific annotations.