California property tax law provides a number of ways individuals and businesses can reduce their property tax assessments. The following information is provided to help you learn more about these programs. Please contact our office if you need any additional information.
Seniors: Coming Soon - California's Property Tax Postponement Program will allow senior citizens and disabled persons with an annual household income of $35,500 or less to apply to defer payment of property taxes on their principal residence. Under this program, applications may be filed with the State Controller beginning September 1, 2016. Information will be posted to the State Controller's website as it becomes available.
Learn more about tax saving programs and benefits available to you by visiting www.boe.ca.gov/seniors.
Recognition of Market Value Decline
Proposition 8: The Assessor has an obligation to recognize declines in market value and to temporarily reduce assessments, when warranted. California Statute, (Proposition 8), provides that your assessment must be the lesser of its factored base year value, or its current market value as of the lien date. Once an assessment has been reduced under Proposition 8, it will be subject to annual review and adjustment, in accordance with the market value. Once the market value exceeds the factored base year value, the assessment will be restored to its factored base year value. If you feel the assessed value of your property exceeds the market value as of January 1st, you are encouraged to contact the Assessor’s Office and request a review of your assessment. A Value Review Form is available from July 2 to December 31 each year. It should be filled out and submitted to request a review for a reduction based on Proposition 8.
If, after review and discussion, your assessment is not resolved to your satisfaction, you have the right of appeal to the County Assessment Appeals Board. In order to appeal an assessment, you must file an Application for Changed Assessment with the Clerk of the Board, between July 2 and September 15 (or the next business day if the 15th falls on a weekend or holiday). For Supplemental Assessments you must file within 60 days of the date of Notice of Supplemental Assessment.
Applications and additional information pertaining to assessment appeals are available from the Clerk of the Assessment Appeals Board at 175 Fulweiler Ave., Auburn, CA 95603, by phone at (530) 889-4020 or at www.placer.ca.gov/bos/Clerk.aspx.
Homeowners' Exemption Qualifications and Claim Form
A property owner may claim a Homeowners’ Exemption on a residence they own and occupy as their primary residence at 12:01 a.m. on January 1; or qualifies within 30 days of change in ownership or new construction for which a Supplemental Assessment is levied. The exemption reduces your assessed value by $7,000 and reduces the tax bill by approximately $70 if filed timely. It is the homeowner’s responsibility to apply for the exemption. To receive the full exemption, you must file with the Assessor’s Office on or before February 15, or within 30 days of a Notice of Supplemental Assessment. A late filing is accepted from February 16 to December 10 for 80% of the exemption. The exemption continues each year as long as the property is owned and occupied as the primary residence. It is the homeowner’s responsibility to terminate the exemption when no longer eligible.
A $4,000 assessment exemption is available for qualified veterans who served with the U.S. armed forces during a period of war, and have a discharge or release from active duty under honorable conditions. A claimant, who is single, may not own more than $5,000 in total assets. A claimant, who is married, may not own more than $10,000 in total assets. This exemption must be filed annually.
Disabled Veterans' Exemption
The Disabled Veterans’ Exemption is available for qualified veterans to reduce their property taxes. In order to qualify, the property must be the principal place of residence of a qualified disabled veteran or their unmarried surviving spouse.
Veterans rated as 100% disabled as a result of their military service (or their unmarried surviving spouse) may be eligible for this exemption. The Disabled Veterans’ Exemption form (BOE-261-G)provides instructions and examples of the two types of exemptions available. An annual filing is needed for the larger low-income exemption, and the smaller basic exemption generally only requires a one-time filing.
Exemption claims must be filed annually by February 15th to receive a full exemption. Partial exemptions may be available if you file past this date.
Note: A property owner may not have more than one exemption, such as the Homeowners’, Veterans’, or a Disabled Veterans’ exemption on the same property. Applications and additional information may be obtained at the Assessor’s Office.
Transfer of Base Year Value Persons 55 or Older
Persons 55 or older (BOE-60-AH) or persons who are severely and permanently disabled (BOE-62 and BOE-62-A) who sell their primary residence, and within two years, buy or build a replacement dwelling of equal or lesser value in the same county may transfer their factored base year value from the original home to the new home.
Historical Aircraft Exemption
Aircraft of historical significance may be eligible for an exemption if displayed at least 12 days per year. The Historical Aircraft Exemption Claim form (BOE-260-B), provides details on how to file for this exemption.
Exemptions claims must be filed annually by February 15th to receive a full exemption. Partial exemptions are available if you file between February 16 and August 1.
More on Historical Aircraft Exemption:State Board Explanation Letter
Completed new construction may be excluded from supplemental assessment under certain circumstances. The property must be intended for sale and the builder must file the necessary Builder's Exclusion form with the Assessor’s Office prior to, or within 30 days of, the start of construction. If the exclusion is approved, an appraisal is not made until the next lien date or until the property is sold, leased, or occupied. For more information, or to obtain an application, please call the Assessor’s Office.
Solar Energy New Construction Exclusion
The construction of an active solar energy system may qualify for a property tax exclusion. The State Board of Equalization has created a Solar Properties webpage that lists available reference material on this topic.
To apply for this benefit, please complete and return a Solar Energy New Construction Exclusion form.
Misfortune or Calamity