California Property Tax Glossary
Understanding California property tax terminology is essential for homeowners. This comprehensive glossary explains key terms, propositions, and concepts that affect your property taxes.
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Assessment
Assessed Value
The value assigned to your property by the county assessor for tax purposes. Under Prop 13, this is typically the purchase price plus annual increases (capped at 2% or CPI, whichever is less).
Base Year Value
The assessed value established when you purchased your property or when it was last reappraised. This becomes the starting point for Prop 13 protection.
Change in Ownership
An event that triggers reassessment to current market value. Includes sales, transfers (with some family exceptions), and certain refinances.
Consumer Price Index (CPI)
Inflation measure used to calculate Prop 13 assessment increases. Annual increases are limited to 2% or CPI, whichever is less.
Decline in Value
When market value falls below Prop 13 protected value, you can request temporary reduction in assessed value. Automatically reviewed by assessor.
Escape Assessment
Correction of an assessment when property or improvements were not previously assessed or were assessed incorrectly. Can go back 4 years.
Factored Base Year Value (FBYV)
Your base year value adjusted annually by the Prop 13 inflation factor (max 2%). This is your current assessed value if no other changes occurred.
Market Value
What your property would sell for in the current market. Often much higher than assessed value for long-time owners due to Prop 13 protection.
Reassessment
Revaluation of property to current market value, typically triggered by change in ownership or new construction. Resets Prop 13 protection.
Secured Roll
The official list of all taxable real property in a county, including assessed values. "Secured" because taxes are secured by the property itself.
Supplemental Assessment
Additional tax bill when property value increases due to change in ownership or completion of construction. Prorated for remainder of fiscal year.
TRAC (Taxable Value)
Total taxable value after all exemptions are applied. This is the value multiplied by tax rate to determine your tax bill.
Unsecured Roll
Taxable personal property not secured by real estate (business equipment, boats, aircraft). Different billing cycle than secured property.
Exemptions
Exemption
A reduction in assessed value that lowers your tax bill. Common exemptions include Homeowner's ($7,000), Disabled Veterans (varies), and welfare exemptions.
Homeowner's Exemption
A $7,000 reduction in assessed value for owner-occupied primary residences. Saves approximately $52-87 per year. Must apply by February 15.
Forms
Preliminary Change of Ownership Report (PCOR)
Form filed when property changes hands. Used by assessor to determine if reassessment is required. Must be filed within 45 days.
Government
Board of Equalization (BOE)
State agency that oversees property tax administration and hears appeals on certain property tax matters. Also sets values for state-assessed properties.
Important Dates
Lien Date
January 1st of each year - the date when taxes become a lien on property and when ownership and value are determined for the upcoming tax year.
Other Taxes
Transfer Tax
One-time tax on property sales, separate from property tax. Varies by city/county. Not covered by Prop 13 limits.
Programs
Property Tax Postponement
State program allowing eligible seniors, blind, or disabled homeowners to defer property taxes. Creates a lien that must be repaid when property is sold.
Teeter Plan
County program where taxing entities receive full allocation regardless of delinquencies. County keeps penalties and interest from late payments.
Williamson Act
Program offering reduced assessments for agricultural/open space land in exchange for 10-year commitment to keep land in agricultural use.
Propositions
Proposition 13
Constitutional amendment (1978) that limits property tax increases to 2% annually and sets base rate at 1%. Requires reassessment upon sale.
Proposition 19
Allows homeowners 55+ to transfer tax basis statewide (3 times). Limits inherited property benefits to primary residences with $1,044,586 exclusion.
Proposition 58
Allowed parent-child property transfers without reassessment. Replaced by Prop 19 in 2021, which limited benefits to primary residences.
Proposition 60/90
Allowed seniors 55+ to transfer tax basis within county (60) or between participating counties (90). Replaced by broader Prop 19 in 2021.
Proposition 8
Allows temporary reduction in assessed value when market value drops below Prop 13 value. Automatically reviewed annually by assessor.
Special Taxes
CFD (Community Facilities District)
Special districts that can levy additional taxes (Mello-Roos) to fund infrastructure and services. Common in newer developments.
Direct Assessment
Fixed charges on your tax bill for specific services (street lighting, sewer, etc.) that are not based on property value.
Mello-Roos
Special tax for infrastructure in Community Facilities Districts. NOT tax-deductible (unlike property taxes). Typically lasts 20-40 years and may include annual increases. Can be $1,000-8,000+ annually.
Parcel Tax
Flat-rate tax (same amount for all properties) approved by voters for specific purposes like schools. Not based on property value.
Special Assessment
Additional charges on tax bill for voter-approved bonds or specific services. Includes Mello-Roos, school bonds, and improvement districts.
Tax Rates
Effective Tax Rate
Your total property tax bill divided by your home's market value. California's average effective rate is 0.75-0.76%, though tax bills include additional assessments.
Levy Rate
The official tax rate set by taxing entities. Different from effective rate because it's applied to assessed value, not market value.
Tax Rate Area (TRA)
Geographic area with specific combination of tax rates from various entities (county, city, schools, special districts). Determines your total tax rate.
Common Abbreviations
- APN: Assessor Parcel Number
- AV: Assessed Value
- BOE: Board of Equalization
- CFD: Community Facilities District
- CPI: Consumer Price Index
- FBYV: Factored Base Year Value
- HOX: Homeowner's Exemption
- MV: Market Value
- PCOR: Preliminary Change of Ownership Report
- Prop: Proposition
- TRA: Tax Rate Area
- TRAC: Taxable Value
Need More Help?
If you need clarification on any property tax terms or have questions about your specific situation, contact your county assessor's office for assistance.
Note: This glossary provides general definitions for educational purposes. Property tax laws are complex and change frequently. For official definitions and current regulations, consult with your county assessor or a qualified tax professional.