For the first time since Proposition 13 passed in 1978, property
taxes will likely go down, the California State Board of
Equalization announced Monday.
McClatchy News Service
For the first time since Proposition 13 passed in 1978, property taxes will likely go down, the California State Board of Equalization announced Monday.
Due to monetary deflation, property taxes will drop an estimated $2.60 per $100,000 of assessed value – about $5 to $10 for most homeowners.
The decrease would become a sure thing this month when the official deflation figure is scheduled to be released by a state agency.
“Hopefully that will offset some of the tax increases,” said Jon Coupal, president of the Howard Jarvis Taxpayers’ Association.
Proposition 13 prevents property taxes from increasing by more than 2 percent per year, regardless of the inflation rate or how much property values increased. But taxes can be reduced if deflation occurs. In all but five years since 1978, the tax rate increased by 2 percent. It has never gone down, according to the statement.
Almost every property owner will see a decrease unless he or she already had the property value adjusted down by the local assessor. The decrease – coupled with property tax reductions caused by reassessments – will likely cause further cuts to government services, officials said.
In addition, reduced property taxes also will cause lowered payments to city redevelopment agencies, which allow cities to siphon taxes into a fund used to spruce up blighted neighborhoods.
