The average new 2019 San Diego home buyer IMMEDIATELY starts saving over $665 a MONTH in property taxes — thanks to Prop 13
NOTE:This is an updated, expanded article — using December, 2018 numbers.
A common misconception is that Prop 13 protects only the “old people” — that the new home buyers gain little benefit from Prop 13. It’s an educational (and scary) exercise to calculate what California homeowners’ property taxes would be if Prop 13 had NOT passed in 1978 — and no subsequent reforms in property taxes occurred (a fair assumption, given Democrat dominance of the state legislature since 1970).
Most people have forgotten the following crucial aspect of the old CA property taxes: In 1977, the average property tax rate in California was 2.67 percent.Proposition 13 fixed the rate at 1 percent of the purchase price[plus a 2% annual increase, or the COL, if it’s less].
On top of the 1% base property tax rate are whatever additional taxes are approved to cover indebtedness, such as bonds — plus annual assessments for special districts. Although the additional taxes rate varies around the state, it generally runs at about two-tenths of 1 percent, setting the overall Proposition 13 rate… Read More