I remember a line from one of the Absolutely Fabulous series shows when Edina, in court following DUI charges, bemoans "Why oh why must we pay taxes? ...Why don't you just tax the stupid people?"
Taxes are probably on everyone's list of things they don't like, or don't want to pay. The point of this post, however is NOT to debate this issue, or to convince you of the value of your property taxes.
(photo courtesy of Flilckr and AMICHAELMURRAY)
However, there are some things you should know if you are purchasing a Carlsbad home, or elsewhere in this area (California). Whether you are new to Carlsbad or not, it's important to understand how we are taxed in California, when it occurs, and the overall process. You don't want to end up not paying them and having a lien slapped on your home. Not good!
- Under Proposition 13 here in California, property is only reassessed upon change of ownership or new construction. So property assessments CANNOT be increased by more than 2% annually except in these cases. The tax rate is 1% (but you should check for each town as they vary above this 1% due to special bonds or other fees - Carlsbadright now is 1.01714% to 1.04842% of assessed value plus any special fees, Mello Roos, etc).
- When a sale or transfer occurs, the Assessor's Office will receive a copy of the deed and will decide if a reassessment is needed; if so an appraisal must be done so that a new market value can be determined, the homeowner informed, and an appeal may be made if desired. (exclusions - transfer between spouses, divorce, refinancing, and other situation like seniors and disabled).
- The Assessor's Office will also receive all permits for construction, and if new a reassessment is needed (replacement, repair or maintenance does not require a reassessment)
- If the market value of your home falls below the assessed value, the Office is required to lower the assessment. You can apply for this reduction between March 1 and May 30, or between July 2 and November 30.
- Supplemental Tax - as noted above, the home must be reassessed upon ownership change, and the difference between the NEW value and the OLD assessment is a supplemental tax. This is prorated for the number of months that remain in the fiscal year ending June 30. This Supplemental Tax bill is in addition to the regular tax bill. This may be appealed if done within 60 days of the tax bill being mailed.
- Tax year is July 1 through June 30.
For more information on tax questions on your Carlsbad home, you may contact the Assessor's Office at (858)505-6262 or visit the website.
If you are in a different local check with your town tax office for information on your property taxes.
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Thanks, Marlene. I know I was really surprised at how different they are here in CA as compared to living in Boston. Seems like a good thing for buyers to know given how costly it can be.
Jeff
With the property values flattening, or declining, there may be opportunities to get property taxes reduced (this can be a good mailer to homes purchased in 2005-2006.)
When our market sank in the mid-1990's, I was able to get my tax reduced by sending in the forms, along with the comps. It took a long time, but I did get my taxable value reduced about $40K (which equated to $400/year.) The part, that I didn't know until it was too late, is that the reduction is temporary and you have to re-apply for it every year, or the assessed value will bounce right back where it was before the reduction!
Good points, Vicki, and a good idea for a mailer. My farm would probably appreciate it. Thanks for sharing this.
Jeff
You should never grow tired of praising Prop 13...it's a wonderful thing!
Supplementals are annoying, however.
Jeff - I'm with you...although there is some debate about Prop 13 as you probably know. We all know the saying about death and taxes.
Jeff
Jeff, that is different then here in Connecticut. We go through re-assessment every five years, and the Town Council sets the Mill Rate based on the budget. Under this system we could easily see an increase in our property tax bill much larger than 2% in any one year, especially right after re-assessment.
George - it was a real change for me too. Massachusetts was very much like CT and property taxes could go up pretty regularly and steeply...and did. The nickname for the state is Taxachusetts.
Jeff
California taxes are really not bad. I remember the hoopla there to get them rasied as they are less than many areas around the country.
Paula - well I agree. The taxes in both Minnesota and Massachusetts were worse. There is still lots of debate. But they get money from us in other ways...like our car registrations! :)
Jeff
LOL Sharon. I guess the good thing is that they ARE prorated. With the increase in prices over the last 5 years this is a big jump. It is tough on the sellers who have a low rate and then move to a new house and WOW their tax rate goes way up.
Jeff
Thanks, Irina. I suspect there are many that don't know how it works...certainly not new folks from out of state.
Jeff
Great Article - thanks for posting. I just started a new group for California Property Taxes - you can follow the link here - http://activerain.com/groups/CAPropTax
Please consider posting this article to the group - so that we have a well rounded resource for the public to research this important topic.
Thanks in advance,
John