Chapter 19 Conclusion
This concludes Chapter 19. Below is a brief summary which you can review before you take your chapter quiz.
- Special Assessment Taxes:A tax or levy imposed by a city, county, or state only on those specific parcels of real estate that will benefit from a proposed public improvement, such as a street or a sewer.
- General Tax:Used for the general operation of the governmental agency authorized to impose the tax (Ad Valorem).
Mills (one mill = 1/1000th of a dollar or .001)
California Property Taxes
In California, about HALF of the state's one hundred million acres are owned by governments - exempt from property taxation.
- Proposition 13 limits the maximum annual tax on real property at 1% of market value, plus the cumulative increase of 2% in market value each year after,due to the annual inflation factor.
- Proposition 60: homeowners 55 years of age and over are allowed to transfer their base-year property tax value to another home of equal or lesser value in the same countyand keep their low assessment from their former home.
- Proposition 90 allows the privilege to be applied to a home purchased in ANOTHER county, if that county’s Board of Supervisors chooses to apply Proposition 90.
- Real property taxes run from a fiscal year beginning July 1 until June 30 of the following year.
- Real property tax becomes a lien on the January 1 that precedes the fiscal tax year.
- In a book sale, the property owner still owns the real estate, but the owner’s name is entered into a delinquent account book, and this begins a 5-year period of redemption.
Section 218: an owner-occupied residential dwelling is entitled to a $7,000.00 deduction from the full appraisal value.
Section 205: a California resident who has served in the military during war time an exemption of up to $4,000.00 of full value of the property.
California special assessment laws:
- The Street Improvement Act of 1911:A law used by cities and counties for street improvements.
- The Mello-Roos Community Facilities Act of 1982: A law used to finance public services, such as waste treatment plants, parks, and schools, in newly developed areas.
California Taxes:
- The Federal Insurance Contributions Act (FICA) provides for social security retirement fund taxation to be paid by employers of one or more persons.
- In California, the federal and state tax rates increase with income level increases.
- Documentary Transfer tax
- Estate and Inheritance tax.
- Gift taxes
- Miscellaneous taxes
Four principal prerequisites for transforming a mobile home into real property:
- Obtaining a building permit;
- Attaching the mobile home to an approved foundation;
- Recording a document reflecting that the mobile home has been affixed to an approved foundation system; and
- Obtaining a certificate of occupancy.
Once attached, it is PROHIBITED to remove the mobile home from the foundation, UNLESS:
- ANYONE who has a title to any estate or interest in the real property consents to this removal;
- The mobile home owner notifies BOTH HCD and the local assessor 30 days prior to the removal.