California Proposition 13

Taxable Value of Real Property

Under California Proposition 13, taxable value of real property can increase more than 2% in one year if a property experiences:
 
A Change in Ownership
 
New Construction 
 
Temporary reduction(s) in taxable value in prior tax year(s). 
 
Change In Ownership
Certain changes in ownership are usually reassessable.

Reassessable changes in ownership generally include:
 
Sales 
 
Transfers 
 
Inheritances 
 
Reassessable changes in ownership create a new base year value for the property that is equal to the market value at the time of transfer.
 
Other changes in ownership are usually excluded from reassessment. Non-reassessable changes in ownership generally include:
 
Transfers between husband and wife (including those resulting from death or divorce).
 
Security interest transfers (co-signers). 
 
Changes in the way title is held (transfer from individual(s) to the same individual(s) or trust account). 
 
Other types of transfers may be not be reassessable if they meet certain conditions.  
 
New Construction - is generally assessable, and may increase the taxable value of your property.

Examples include: New room additions, pools, spas and patio covers. Generally, normal maintenance and repairs are not assessable and will not increase your taxable value.  Other examples would be new roof or garage door.

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