Property taxes expected to be lower
California homeowners will be getting a badly-needed break in the form of tax relief due to the deflated housing market this year. For the first time since Proposition 13 passed in 1978, homeowners are likely to see a lower property tax bill. The State Board of Equalization announced recently that due to deflation in the value of real estate statewide, they will be reducing the rates this year, by about $2.60 per every $100,000 in assessed property value.
That may seem insignificant, but any decrease in taxes should come as welcome news to homeowners in California who have been saddled with some of the highest taxes in the nation. For all but 5 years since the passage of Prop. 13, the property taxes have increased at their limit of 2 percent per year. To actually have a tax bill decrease is something to celebrate.
After all, California has the 4th highest state income tax in the nation, the highest state sales tax in the nation, one of the highest corporate income tax rates in the nation, and the highest gas taxes of any state.
This is a good time to reflect on the benefits of Proposition 13, which often comes under attack when state revenues fall… Read More