Cost of living in California especially in cities along the beaches are very high, insurance of anything is not cheap, but one thing Californians love to have is stable property tax. The basic rate is 1% plus some small fees about 0.1-0.2% of the property value.
The Proposition 13 limit the maximum a property can increase a year to 2%, so the property tax an owner can expect to pay for next year is no more than 2% than this year, if inflation is more than 2%. If inflation of any year is less than 2% then the property value will increase only that much.If a person bought his/her house 10 years ago for $300,000, the first year property tax would be about $3,000. That property can be valued at $500,000 now, but for property tax purpose it is calculate at around 22% more than $300,000(compounding 2% increase per year).
Comparing the property tax of other states and/or other cities an owner may see their tax increase more than 5-10%, even up to 20-25% or more a year.
Quote:
Chicago property tax bill double whammy: Increases plus an assessment hike
Anne McDermott had braced herself for a big increase in the property taxes on her Near South Side town home, but when she opened the bill last month, she was still taken aback.
She'd figured a boost of maybe $550 on the $4,214 she paid last year. That's a jump of about 13 percent, the average increase on Chicago property tax bills for 2016. But McDermott's bill went up by nearly $1,360 — more than 32 percent.
It was the result of being hit with a double whammy: Not only were huge tax hikes by City Hall and Chicago Public Schools taking effect, but the taxman came as he does every three years and reassessed the value of McDermott's home. And he concluded it was worth a whopping 31 percent more.
http://www.chicagotribune.com/news/local...0731-story.html
The Proposition 13 limit the maximum a property can increase a year to 2%, so the property tax an owner can expect to pay for next year is no more than 2% than this year, if inflation is more than 2%. If inflation of any year is less than 2% then the property value will increase only that much.If a person bought his/her house 10 years ago for $300,000, the first year property tax would be about $3,000. That property can be valued at $500,000 now, but for property tax purpose it is calculate at around 22% more than $300,000(compounding 2% increase per year).
Comparing the property tax of other states and/or other cities an owner may see their tax increase more than 5-10%, even up to 20-25% or more a year.
Quote:
Chicago property tax bill double whammy: Increases plus an assessment hike
Anne McDermott had braced herself for a big increase in the property taxes on her Near South Side town home, but when she opened the bill last month, she was still taken aback.
She'd figured a boost of maybe $550 on the $4,214 she paid last year. That's a jump of about 13 percent, the average increase on Chicago property tax bills for 2016. But McDermott's bill went up by nearly $1,360 — more than 32 percent.
It was the result of being hit with a double whammy: Not only were huge tax hikes by City Hall and Chicago Public Schools taking effect, but the taxman came as he does every three years and reassessed the value of McDermott's home. And he concluded it was worth a whopping 31 percent more.
http://www.chicagotribune.com/news/local...0731-story.html
