TERMS YOU SHOULD KNOW
TAXABLE VALUE:
The value upon which your taxes are calculated. This is normally the base year value of the property established in accordance with Proposition 13 plus the annual inflation factor, or current market value, whichever is lower.
BASE YEAR:
The base year value for property in California is 1975 or the year in which property has transferred or been newly constructed. The Assessor determines the full cash value of property on its base year date. This base year value will be factored by an inflationary factor not to exceed 2 percent each year until the property is transferred at which time a new base year is established. A new base year is also established for new construction.
FULL CASH VALUE:
Full Cash Value or Fair Market Value means the amount of cash or its equivalent which property would bring if exposed for sale in the open market under conditions of which neither buyer nor seller take advantage of the other.
ASSESSMENT ROLL:
The official list of all assessable property in the County as of the lien date.
LIEN DATE:
The "moment" of valuation for all property. The assessed value of the property as of 12:01 a.m. on January 1 governs the tax status for the fiscal year beginning the following July 1.
REAL PROPERTY:
Land and improvements.
IMPROVEMENTS:
All buildings, structures, fixtures, pools, fences, etc., secured to the land, including taxable mobile homes and taxable trees and vines.
PERSONAL PROPERTY:
All other property subject to the general property tax but not considered land or improvements (such as boats, aircraft and business personal property).
SECURED PROPERTY:
Property on which the property taxes are a lien against real estate.
UNSECURED PROPERTY:
Property on which the property taxes are not a lien against real estate (office furniture, machinery, equipment, boats, airplanes, etc.) NOTE: Business inventory is now exempt from taxation.
DIRECT CHARGES (AKA SPECIAL ASSESSMENTS):
Direct charges are non-value-related amounts levied on a tax bill by various local special districts, rather than the Assessor. Direct charges include a variety of items such as voter-approved special taxes (including Mello-Roos Community Facilities Districts), qualified special taxes, benefit/special assessments (including 1915 Improvement Districts), charges for services/fees, and delinquent water/sewer bills.
SUPPLEMENTAL ASSESSMENTS
State law requires the Assessor's Office to reappraise property upon change of ownership or completion of new construction. The Assessor's Office must issue a supplemental assessment that reflects the difference between the prior and new assessed values. The tax liability is calculated by the Auditor and is pro-rated based on the number of full months remaining in the fiscal year, ending June 30. This is in addition to the regular tax bill. A Notice of Supplemental Assessment is mailed to the property owner before the Supplemental Tax bill is issued.
For example, if you purchased property in September, worth a market value of $250,000, and the previous assessed value of that property was $200,000, you would receive a supplemental assessment on the difference ($50,000). Generally, the supplemental assessment ($50,000) would be multiplied by the appropriate tax rate (say 1.08%) and pro-rated for the full months remaining in the fiscal year (9/12 months = .75). This supplemental tax liability ($50,000 x 1.08% x .75 = $405.00, using the criteria of the example) is in addition to the annual tax bill.
Supplemental bills are mailed to you rather than your lender. Please contact your lender to determine if they will pay the supplemental bill on your behalf from an impound account that may be established for the benefit of your property
All exemptions (Homeowner's, etc.) shall be allowed on the supplemental assessments unless they have already been granted on the regular assessment. A claim for exemption must be filed with the Assessor's Office on or before the 30th calendar day following the date of mailing of the Notice of Supplemental Assessment.