When buying a home in Los Angeles County, are the property taxes calculated based on the purchase price or new assessed valued?

Asked by Roger, Mon Sep 26, 2011

I've heard answers both ways, and not sure what is the accurate answer. Thanks!

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Shane Milne, Mortgage Broker Or Lender, South Jordan, UT
Tue Sep 27, 2011
When you buy a home in California, almost always the purchase price is the basis for your assessed value. If you buy as your owner occupied residence, then you can claim a homeowners exemption for $7,000 here in CA, meaning if you buy a home for $300k and file that exemption then the assessed value would really be $293k.

The treasurer then uses that assessed value to tax the property. California has a basic levy tax rate of 1% ($2,930/year based on a $293k assessed value), and then on top of that there may be municipal bonds, school district & water district taxes, etc (usually these are flat dollar amounts, not based on a % of the assessed value).

The new tax rate is effective that day you buy the home, but it doesn't change right away, what happens is that when the assessor gets notified of the new purchase price they will update their assessment records, the treasurer will recalculate the property taxes based on the new assessed value, and you will be sent out a supplement tax bill (credit) for the amount you underpaid/overpaid in the time since you purchased the home up until your supplement tax bill/credit was sent.

http://www.lacountypropertytax.com/portal/default.aspx is where you can find LA County property tax rates (as well as a link to look up the parcel number for a specific property you want to look up the property tax rate for - it's a 2 step process).
0 votes
John Juarez, Agent, Fremont, CA
Mon Sep 26, 2011
Property taxes in California are based on assessed value. The new assessed value will be based on the purchase value.
Web Reference:  http://www.MedfordTeam.com
0 votes
Tina Lam, Agent, San Jose, CA
Mon Sep 26, 2011
If you're in California, you're subject to the property tax assessment rules from Prop 13.

Here's a quick overview: http://www.californiataxdata.com/pdf/Prop13.pdf

When you purchase a home, the assessed value becomes the purchase price for that year. Thereafter, the assessed value can be adjusted by the tax assessor's office according to market conditions, up to a 2% increase per year.
Web Reference:  http://www.archershomes.com
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