What will be the amount of the annual property tax? - among the first questions frequently asked by many potential buyers of real estate.
This article discusses the method of collecting information on tax rates and the method of calculating property tax, which will be assessed by the real estate buyer.
It is assumed that the property is located in California and that the transaction does not include proposal 60 or proposal 90 of the taxable base. Although the following example applies to property located in Orange County, the same methods apply to any county of California. Each county has its own way of making the information discussed in this article available to the public, and the reader may need to do some research to gather the necessary data.
The property for this example was recently listed and sold through the SoCalMLS system. The address is 1723 Miramar Drive in Newport Beach, and the listing price of $ 3,595,000 will be used as the estimated selling price. All the information used in this example is easily accessible from a combination of public records and advertising publications.
The property tax levied on the owner consists of two parts.
- The first part is called the ad valorem part and is calculated by multiplying the value of taxation of the property base by the tax rate ad valorem. The basic tax assessment is the purchase price of the property. According to current California law, the baseline property tax assessment may increase by up to 2% annually.
- The second part is called a special assessment. This is the total amount of the part of the property on the bonds of special evaluation and improvement of payments on bonds. This amount is determined by the applicable bonds and does not depend on the assessment of property tax.
To collect data for this example, click on the link “Link to the Orange County Tax Collector real estate search page” shown at the bottom of this article and enter either the landlord-valuer number or the property and city.
Then click the corresponding "FIND" button. A page will open with the item's parcel number.
Click on the parcel number link. The opened page can display several lines with parcel numbers. Click on the number of the parcel in the line that has the last year and does not contain the word "Additional."
The page that opens will display information regarding the current tax invoice. Look in the lower right corner of the page to find the words “Click here for more information” and click on this link.
A page will open in which the column "Tax Rate" and "RELEASE FREE EVALUATION" will be displayed.
The ad valorem tax rate is the sum of all tax rates listed in the Tax Rate column and is equal to 1.03956%.
Thus, the ad valorem tax is 1.03956 x $ 3,595,000 / 100, which is 37,372.18 US dollars.
The special allowance for a part of the tax invoice is the sum indicated in the “Amount” column below the heading “Special user contributions” and excluding the amount in the “Total” row.
Some of the special ratings for this example are $ 184.56.
The resulting total property tax for this example is $ 37,372.18 + $ 184.56 or $ 37,556.74.
The release of the owner of the house.
If the owner of the house has applied for the Exemption of the Owner of the house, then the assessment of the property tax can be reduced by subtracting from it the amount of Exemption of the Home Owner before performing the above calculations. At the time of this writing, the release of the owner of the house was $ 7,000.
The question of property tax is now answered for ANY property that is being considered.
Link to -> Property page Tax County Tax Collector.
