What are the rules of Prop 13?

Proposition 13, adopted by California voters in 1978, mandates a property tax rate of one percent, requires that properties be assessed at market value at the time of sale, and allows assessments to rise by no more than 2 percent per year until the next sale.

How are property taxes determined under Proposition 13?

Under Proposition 13, property taxes instead are based on a property’s purchase price. In the year a property is purchased, it is taxed at its purchase price. Each year thereafter, the property’s taxable value increases by 2 percent or the rate of inflation, whichever is lower.

What is Prop 13 value in California?

www.stancounty.com/assessor California’s Proposition 13 caps the growth of a property’s assessed value at no more than 2 percent a year unless the market value of a property falls lower. When that happens, Proposition 8, which also passed in 1978, allows the property to be temporarily reassessed at the lower value.

How does Prop 13 work when you sell your house?

Prop. 13 sets a property’s base-year value to what it was in 1975 or when it last changed ownership. Then it allows for annual property tax increases of no more than 2% until it changes hands again. In most cases, the portion that’s transferred is reappraised to the full current market value.

Does Prop 13 carry over to heirs?

When a person dies, and a child inherits the home, the low valuation of the real property can remain intact with the child; provided that, the child files a parent-to-child exclusion form. You see, Proposition 13 allows a child to keep the parent’s tax value of the home. That’s a great benefit to any child.

Does Prop 13 raise property taxes?

After passage, it became article XIII A of the California Constitution. Under Proposition 13, the annual real estate tax on a parcel of property is limited to 1% of its assessed value. This “assessed value” may be increased only by a maximum of 2% per year until, and unless, the property has a change of ownership.