About Property Taxes

How is real property assessed?
Real property is assessed upon change of ownership and, in certain circumstances, the construction of improvements. The new assessed value is equivalent to the purchase price and is subject to being increased by as much as 2% each year.

How are property taxes billed?
Property taxes are billed annually and paid in two equal installments. You can also have your taxes impounded monthly. An impound account is managed by your mortgage company. As the homeowner you pay for property taxes and insurance along with your mortgage payment. When your property taxes are due, the mortgage company sends the money to the tax collector or insurance company.

When are property taxes due?

The fiscal year runs from July 1 thru June 30. The first installment is due November 1 and it is late December 10. The second installment is due February 1 and it’s late April 10. You can remember these dates with this mnemonic device: No Darn Fooling Around = November it’s due, December it’s late, February it’s due, April it’s late.

When do I start paying my property taxes?
After change of ownership, a supplemental tax bill may be issued to collect taxes owing for the current tax year based on the difference between the previous and the new assessed values of the real property. The seller is responsible for the payment of taxes due prior to close of escrow, and the buyer is responsible for the payment of taxes due after close of escrow, including any supplemental tax bill.

How is the base property tax rate set?
Under Proposition 13, passed by California voters in 1976, the base property tax rate is set at 1% of the full cash (or assessed) value of real property.

What are Mello-Roos?
Real property can be subject to continuing tax levies under the Mello-Roos Act. Such levies are used to finance certain designated public services and capital facilities. Among the services and facilities typically financed through “Mello-Roos districts” are police and fire protection services, ambulance and paramedic services, parks, elementary and secondary schools, libraries, museums, and cultural facilities.

MARK YOUR CALENDARS!
California Property Taxes:
Due Dates

FEBRUARY 1st
2nd Installment Due

MARCH 1st
Assessment Date

APRIL 10th
2nd Installment Delinquent at 5pm

JULY 1st
Beginning of Fiscal Year

NOVEMBER 1st
1st Installment Due

DECEMBER 10th
1st Installment Delinquent at 5pm