Propositions 13 and 8 | Santa Clara County Property Tax Propositions | California real estate Tax
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Today we’re going to talk about the busy propositions that help Californian homeowners strategically use tax laws to save money when it comes time to move. Watch the video here
If you have questions about proposition 13 and 8 about the specifics you want to stay tuned. Hi there this is Vito Scarnecchia with Abitano Real Estate. Thanks a lot for watching today we're going to talk about proposition 13 and proposition 8
Proposition 13 it's a little more complicated than you think you do have that 2% max assessment increase every year there's also something that you probably don't know about proposition 13 which means that you will never pay more than 1% of the assessed value the current year at any given time so what does that mean if your house is worth $1,000,000 or assessed at a million dollars today we're gonna pay .79% of your assessed value and no more than 1% of that. So along the way we voted to increase ad valorem taxes and extra assessments depending on where we live so in special zip codes, you might be paying more in taxes or assessments because your area voted in a school improvement bond, road improvement bond, freeway taxes and that kind of thing.
Also, there's Mello-roos taxes that are added on to newer homes built in the mid-80s to early 2000s a lot of the newer developments adopted assessments called Mello-roos tax which help pay for newer schools that are in that development like fire departments and police as well and the roads that were in that development.
If you want to learn more about specifically how much property tax and how - how much assessment you're paying every year there's a link on my blog. You can plug in your property address and It will tell you exactly what your assessment is current year how much you're paying if you have a homestead exemption (which is another video ) and all the other ad valorem taxes and assessments
Back in 2007-2008, our property values dipped down while your property tax has kind of stayed the same. When this happens in your area, you can ask for relief on your property taxes because otherwise, they would remain at or above whatever your assessed value is at that time you'd be taxed on that value. With proposition 8 you go back and say hey I lost two or three hundred thousand dollars in market value, I'd like to reduce my taxes
Another one that's not a proposition it's a program that Santa Clara County puts on for our residents so ultimately it was designed to help people that became disabled or were permanently disabled or blind or become a senior citizen with a limited income they can take the tax payment and put it on the equity side for when they pass or get back on their feet again they can make good on the taxes that are owed to the county.
That was your proposition 13 proposition 8 and your property tax postponement program. If you have any questions there are links down below that can get you to the tax assessor's page website or you can give me a call and I'm happy to walk you through it or help any kind of questions you might have my name is Vito Scarnecchia. Thanks for watching we'll see you out there do me a favor real quick take two seconds and hit the subscribe button if you haven't already also hit the like the little thumbs up and the little bell so you'll be notified of upcoming videos
Proposition 13 and 8
Prop 13- Most importantly- you will never pay more than 1% of the assessed value of your assessed value in property tax - for example in SC we pay .79% which does not include Ad Valorem taxes -
Secondly- it restricts assessment increases to 2% max per year-
https://www.sccassessor.org/index.php/faq/understanding-proposition-13
Prop 8 - Decline in Value - to allow temporary reductions in assessed value in cases where real property suffers a decline in value. However, when things get better, they can then again raise it to the factored in value. Which we’ll talk about more in the prop 13/8 deep dive video
http://www.boe.ca.gov/proptaxes/decline-in-value/#Description
Property Tax Postponement Program senior, blind, and disabled citizens with an annual household income of $35,500 or less and 40% equity in their homes to apply to defer payment of property taxes on their principal residence.
https://www.sco.ca.gov/ardtax_prop_tax_postponement.html
https://www.abitano.com/2020/01/16/propositions13and8
Vito Scarnecchia CADRE 01407676
