As fellow Californians, The Lund Team understands the concerns expressed by the residents of Carlsbad and the surrounding communities regarding property tax bill increases related to assessments, as well as the need to protect your property against them, when possible. Currently, homeowners in California pay taxes equal to 1.00 -1.25% of the assessed value of their property, at the time of purchase.
Determining the assessed value of the property is the job of the county assessor’s office, who computes the tax amount based on the current market value when ownership changes occur, as well as a yearly inflation-based increase that cannot exceed 2% of the assessed value of the previous year.
Changes Equal Higher Tax Bills
In addition to inflation, tax assessments can go up significantly whenever an improvement, renovation or some type of new construction occurs on your property, or on another property in your general area. Since changes in ownership can also trigger property tax assessments, it is important to take advantage of legal exclusions to the assessment process, when possible. Four Important Exclusions Every Homeowner Should Know & Utilize
California Proposition 58
This exclusion concerns the transfer of property between a parent and child. Since the parents may have purchased the home decades before transferring it to their child or children, the purchase price could be far less than the current value, making the transfer costly for the child who assumes ownership. Proposition 58, however, allows a qualified child, including a son or daughter, son or daughter-in-law, step or adopted child to fill out and submit a “Claim for Reassessment Exclusion for Transfer Between Parent to Child” form within three calendar years of the transfer date.
California Proposition 193
This proposition exempts the transfer of a grandparent’s home to a grandchild, provided the parent of the actual grandchild has passed away. There is no dollar limit to the exclusion, but the “Claim for Reassessment Exclusion for Transfer between Grandparent and Grandchild” form much be submitted per existing rules.
California Propositions 60 and 90
Both of these propositions deal with exemptions that allow homeowners who are 55 years of age or older, and who sell their primary residences and then go forward with buying a home within two years to retain their cost base for tax purposes. Proposition 60 specifies that the purchase be made within the same county as the sale, while Proposition 90 allows lays out the terms for purchasing in another county.
If you have questions about property tax assessments or are interested in selling a home or buying one in the North County San Diego area, give The Lund Team a call now. With decades of experience and an excellent level of market knowledge throughout the area, they can help answer all your questions, and assist you with buying your next home or selling your current one.Posted by Tyson Lund on