My colleague is correct. Annual property tax is always calculated at 1.25% of purchase price.
So on $1mil it would be $12,500/yr or $1,041.66/mo
$1.5mil would be $18,750/yr or $1,562.50/mo
$2mil would be $25,000/yr or $2,083.33/mo
There may be other exception, but the only one I am aware of would be if you or your partner/spouse would be over 55 yrs of age at the the time of the sale of an existing home in Santa Clara County (SCC) which is of equal or higher value than the home you are buying, then you will transfer the tax basis of that home to the new one. So it you had lived in SCC for 20yrs and were selling a $1.5mil home that because you had owned for so long had a tax basis of $300/mo. as long as your new home was $1.5mil or less, it also would maintain that $300/mo property tax rate. If you bought a home for just $1,000 more you would pay $1,562/mo... so being aware of this tax law would save you over $1,300/mo or over $15,000/yr !!!!
The same tax basis transfer is available once in a lifetime when moving from one home to another because of physical disabilities.
You can learn more about Proposition 60 and 90, at my Blog http://www.GetRealRealtor.com
or by calling me, Stu at 408-209-0849