Real estate taxes

There are two types of real estate taxes.

Both are levied against specific parcels of property and automatically become liens on those properties. Taxes need not be recorded to be valid!

Special Assessment Taxes:

A tax or levy imposed by a city, county, or state only on those specific parcels of real estate that will benefit from a proposed public improvement, such as a street or a sewer. These taxes are usually assessed by frontage foot and are always paid before

General Tax:

Used for the general operation of the governmental agency authorized to impose the tax. These taxes are called "Ad Valorem."
The words "AD VALOREM" are Latin for "according to valuation," usually to a type of tax or assessment. Real property tax is an Ad

Real estate is ASSESSED

for tax purposes by county assessors or appraisers. An assessment is an official valuation of real property for tax purposes based on appraisals by local government officials. Sale prices of comparable land are used to estimate land values, whereas buildi

Taxation Specifics

Taxes = Assessed Value/$1.00 rate
Assessed Value =Market Value | % rate

Mills

Mills (one mill = 1/1000th of a dollar or .001)

California Property Taxes

Property taxes and subventions represent the largest single source of income for local governments. In California, about HALF of the state's one hundred million acres are owned by governments. This means they are exempt from property taxation.

Property Taxes and Proposition 13.

Let's take a look first at Proposition 13 limits the maximum annual tax on real property at 1% of market value, PLUS the cumulative increase of 2% in market value each year after, due to the annual inflation factor. This means that rather than using a pur

Regarding new construction since March 1, 1985,

the "full cash value" for tax purposes is the real estate value at the time of completion, plus the inflation factor of 2% per year, cumulatively to the present year. Even adding improvements to a person's existing home will affect the tax bill, because e

Under Proposition 60

homeowners 55 years of age and over are allowed to transfer their base-year property tax value to another home of equal or lesser value in the same county and keep their low assessment from their former home.

Proposition 90

follows the same general idea, but allows the privilege to be applied to a home purchased in ANOTHER county, IF that county's Board of Supervisors CHOOSES to apply Proposition 90.

Real property tax becomes a lien

on the January 1 that precedes the fiscal tax year.
This tax can be paid in two equal installments, with the first installment due November 1 (delinquent by December 10, or the following business day by 5:00 p.m. if December 10 falls on a holiday or weeke

California Homeowner's Exemption and Military Exemption

Under Section 218, an owner-occupied residential dwelling is entitled to a $7,000.00 DEDUCTION from the full appraisal value. (This also applies to an owner-occupied unit in a multiple unit residential structure, an owner-occupied condominium, cooperative

The Street Improvement Act of 1911:

A law used by cities and counties for street improvements. A typical example of this is that the local government hires a contractor to improve streets, and then each owner along that street is liable for paying a pro rata share of that cost. The owner mi

The Mello-Roos Community Facilities Act of 1982:
The Mello-Roos Community Facilities Act of 1982:

A law used to finance public services, such as waste treatment plants, parks, and schools, in newly developed areas. This can result in extra-high taxes, in addition to the normal property taxes, and MUST be made known to any buyer before a purchase takes

Income Tax Withholding

Employers must provide all employees with W4 forms.
Employers must file with the IRS a Form 941.
The wage and tax statement for all employees showing the total wages paid and amounts withheld during the year is called a Form W2.
The form given to Independ

Free Rent and FICA Contributions:

When computing income for federal tax purposes, managers must indicate wages paid in any form other than money at their fair market value. Included in this category are automobiles furnished to employees and living quarters provided for on-site managers.

The Federal Insurance Contributions Act (FICA)

provides for social security retirement fund taxation to be paid by employers of one or more persons. The rate of tax is set by Congress and shared by the employer and employee. The employer must withhold the proper amount from employees' paychecks and su

California State Income Tax

The income tax laws favor homeowners over renters by allowing several income tax advantages to persons who become homeowners. In California, income tax is a progressive tax, which means that the federal and state tax rates increase with income level incre

Here are some additional taxes in California:

Documentary Transfer tax, which is levied upon the transfer of real estate, at the rate of $0.55 per $500.00 of consideration, or fraction thereof.
Estate and Inheritance tax. While the federal government sometimes taxes the estates of deceased persons, C

Mobile Home Taxation

In California, both mobile homes and manufactured homes are subject to local property taxation under certain circumstances.
There are four principal prerequisites for transforming a mobile home into real property:
Obtaining a building permit;
Attaching th

There are two types of real estate taxes.

Both are levied against specific parcels of property and automatically become liens on those properties. Taxes need not be recorded to be valid!

Special Assessment Taxes:

A tax or levy imposed by a city, county, or state only on those specific parcels of real estate that will benefit from a proposed public improvement, such as a street or a sewer. These taxes are usually assessed by frontage foot and are always paid before

General Tax:

Used for the general operation of the governmental agency authorized to impose the tax. These taxes are called "Ad Valorem."
The words "AD VALOREM" are Latin for "according to valuation," usually to a type of tax or assessment. Real property tax is an Ad

Real estate is ASSESSED

for tax purposes by county assessors or appraisers. An assessment is an official valuation of real property for tax purposes based on appraisals by local government officials. Sale prices of comparable land are used to estimate land values, whereas buildi

Taxation Specifics

Taxes = Assessed Value/$1.00 rate
Assessed Value =Market Value | % rate

Mills

Mills (one mill = 1/1000th of a dollar or .001)

California Property Taxes

Property taxes and subventions represent the largest single source of income for local governments. In California, about HALF of the state's one hundred million acres are owned by governments. This means they are exempt from property taxation.

Property Taxes and Proposition 13.

Let's take a look first at Proposition 13 limits the maximum annual tax on real property at 1% of market value, PLUS the cumulative increase of 2% in market value each year after, due to the annual inflation factor. This means that rather than using a pur

Regarding new construction since March 1, 1985,

the "full cash value" for tax purposes is the real estate value at the time of completion, plus the inflation factor of 2% per year, cumulatively to the present year. Even adding improvements to a person's existing home will affect the tax bill, because e

Under Proposition 60

homeowners 55 years of age and over are allowed to transfer their base-year property tax value to another home of equal or lesser value in the same county and keep their low assessment from their former home.

Proposition 90

follows the same general idea, but allows the privilege to be applied to a home purchased in ANOTHER county, IF that county's Board of Supervisors CHOOSES to apply Proposition 90.

Real property tax becomes a lien

on the January 1 that precedes the fiscal tax year.
This tax can be paid in two equal installments, with the first installment due November 1 (delinquent by December 10, or the following business day by 5:00 p.m. if December 10 falls on a holiday or weeke

California Homeowner's Exemption and Military Exemption

Under Section 218, an owner-occupied residential dwelling is entitled to a $7,000.00 DEDUCTION from the full appraisal value. (This also applies to an owner-occupied unit in a multiple unit residential structure, an owner-occupied condominium, cooperative

The Street Improvement Act of 1911:

A law used by cities and counties for street improvements. A typical example of this is that the local government hires a contractor to improve streets, and then each owner along that street is liable for paying a pro rata share of that cost. The owner mi

The Mello-Roos Community Facilities Act of 1982:
The Mello-Roos Community Facilities Act of 1982:

A law used to finance public services, such as waste treatment plants, parks, and schools, in newly developed areas. This can result in extra-high taxes, in addition to the normal property taxes, and MUST be made known to any buyer before a purchase takes

Income Tax Withholding

Employers must provide all employees with W4 forms.
Employers must file with the IRS a Form 941.
The wage and tax statement for all employees showing the total wages paid and amounts withheld during the year is called a Form W2.
The form given to Independ

Free Rent and FICA Contributions:

When computing income for federal tax purposes, managers must indicate wages paid in any form other than money at their fair market value. Included in this category are automobiles furnished to employees and living quarters provided for on-site managers.

The Federal Insurance Contributions Act (FICA)

provides for social security retirement fund taxation to be paid by employers of one or more persons. The rate of tax is set by Congress and shared by the employer and employee. The employer must withhold the proper amount from employees' paychecks and su

California State Income Tax

The income tax laws favor homeowners over renters by allowing several income tax advantages to persons who become homeowners. In California, income tax is a progressive tax, which means that the federal and state tax rates increase with income level incre

Here are some additional taxes in California:

Documentary Transfer tax, which is levied upon the transfer of real estate, at the rate of $0.55 per $500.00 of consideration, or fraction thereof.
Estate and Inheritance tax. While the federal government sometimes taxes the estates of deceased persons, C

Mobile Home Taxation

In California, both mobile homes and manufactured homes are subject to local property taxation under certain circumstances.
There are four principal prerequisites for transforming a mobile home into real property:
Obtaining a building permit;
Attaching th