Property taxes in California are assessed by counties, cities, schools and special districts, with oversight from the California State Board of Equalization, which administers property exemption forms. As explained on the California Tax Data website, property tax bills consist of a general tax levy, which is 1% of the total assessed value of the property and cannot be more than 2% more than the previous year’s tax bill.
Another portion of the property tax bill is for voter-approved indebtedness. This amount varies from county to county in California depending on the local bond issues approved by voters. Another component of property taxes is for direct and special assessments. There are certain exemptions that reduce property taxes. All homeowners can claim the homeowner’s exemption, and certain homeowners may qualify for other exemptions.
Homeowner’s exemption
The homeowner’s exemption in California allows you a $7,000 reduction in the assessed value of your home for property tax purposes. To qualify for this exemption, you must own and occupy the home as your principal residence on January 1.
To claim the homeowner’s exemption, you need to file Form BOE-266, Claim for Homeowner’s Property Tax Exemption, with your local county tax assessor. You can find a Listing of County Assessors on the California State Board of Equalization website. This form must be filed by February 15 in order to receive the full exemption for that year. Once you qualify for the exemption you do not have to re-apply each year as long as you continue to own and occupy the home.
Veterans’ Exemptions
If you are currently serving in the military or you are a veteran, you can qualify for a $4,000 property tax exemption if the value of your other real and personal property is not more than a certain amount. Unmarried surviving spouses and parents of deceased veterans can also qualify for this exemption. To claim the exemption you have to file Form BOE-261, Claim for Veteran’s Exemption with your county tax assessor by February 15.
Disabled veterans can qualify for up to a $100,000 property tax exemption and up to $150,000 if total household income is not more than a certain amount. Unmarried surviving spouses of disabled veterans can also claim this exemption. The exemption is claimed on Form BOE-261-G, which must be filed by February 15.
Disabled access
The cost of certain modifications or installations to make your home more accessible to a resident who is severely and permanently disabled may be exempt from property tax. These include access ramps, barrier removal, widening of doors and hallways, and changes to the restroom.
Solar energy systems
The cost of solar energy systems you install in your home can be exempt from property taxes. These include solar water heat, solar space heat, solar thermal electric, solar thermal process heat, photovoltaic, and solar mechanical energy systems.
Transfer of taxable value
If you are over age 55 or are severely and permanently disabled, you can transfer the taxable value of your current principal residence to another residence in the same county. Your new residence must be purchased or constructed within two years after you sold your former home, and must be of an equal or lesser value. You could also transfer the assessed value to a residence in another county in California if that county allows these transfers.
Sources:
California Property Tax Questions, California Tax Data
Exemptions, California State Board of Equalization
Listing of County Assessors, California State Board of Equalization
Property Tax: An Overview, California State Board of Equalization
Property Tax Exclusion for Solar Energy Systems, Database of State Incentives for Renewables & Efficiency
