bought your home last month or have owned your home
for twenty years, if you live in the California Proposition
13 is protecting
The first benefit is that even the most recent homebuyers pay
of the property taxes
that they would without Proposition 13. The initiative
simply keeps the general level of property taxation lower and
Proposition 13, many new buyers could not afford both their mortgage
payments and their taxes.
Proposition 13 also gives new homeowners long-term security by
predictability in taxes. Property taxes are levied once a year.
The tax "rate"
is applied to the value of your home to determine your tax bill.
13 helps you by limiting the maximum tax rate to 1%. If a home
has a value
of $250,000, the owner will see a tax bill of $2,500. But what
the value of your property goes up? In other states, if the value
of your home
doubles, so does your property tax bill. But because of Proposition
in California the taxable value of your home can only go up 2%
Thanks to Proposition 13, new buyers know exactly what their taxes
be next year, in five years, and in 30 years -- reassuring information
those who plan to live in their homes when they retire.
But this wasn't always the case. Prior to the passage of Proposition
many homeowners shuddered in fear when their property tax bills
Tax increases of 20%, 50%, even 100% in one year were common,
amazingly, some politicians and special interest groups argue
for a return
to the old system!
See more information on saving on property taxes with the California
Homeowners Exemption and
save money every year!