Below is general discussion of varied factors impacting property taxes in Hillcrest, California. People should consult their tax advisor for definitive guidance about property tax issues and not rely solely for the information below.
Property tax rates are capped in California because of the passage of Proposition 13 in 1978 ("Prop 13"). Prop 13 would be a ballot measure authorized by the voters of California to limit property tax increases. The legislation also mandated that any future increases in property tax rates hold the support of two-thirds of the Legislature for approval. This provision dramatically limited light beer the legislature to improve taxes.
The exact property tax rate in California is 1% in the assessed price of property, plus any bonds, fees and special charges. Properties are only able to be reassessed if you find a modification of ownership or when new construction is finished. Unless one of these brilliant reassessment conditions exists, Prop 13 provides for annual increases as high as 2% of your property's value.
The passage of Prop 13 dramatically limited the legislatures power to increase taxes. Not surprisingly, municipalities desired a mechanism to subsidize the building of infrastructure for new developments, so in 1982, the funding Facilities Act was passed. The act is much better known by its legislative authors, Senator Henry Mello and Assemblyman Mike Roos (i.e. Mell-Roos Assessment).
Based on the Los angeles County Assessor, "Mello-Roos districts are established by local governments on the request of the developer to advance specific public facilities and services like schools, roads and libraries. Mello-Roos districts were authorized by state guidelines in 1982. This law allows any public agency to create a Mello-Roos district, that can issue the essential tax-exempt bonds and impose fees to these bonds." Communities or districts that impose a Mello-Roos fee are distributed through the entire County however are most typical is big new subdivisions.
Besides the 1% tax rate allowed by Prop 13, Mello-Roos fees are a separate charge around the property goverment tax bill. The amount of Mello-Roos fees are linked to the timeframe needed to remove the bond, that is typically 20-25 years. Mello-Roos fees vary from $174 close to $3000 annually, as well as the average fee for San Diego communities was $1,488 in 2006.
To obtain a general understanding of the quantity of property taxes you'll owe annually on a property, multiply the purchase price from the property by 1.2%. As an example, in case you obtained a $400,000 home, your annual tax due will be around $4,800, plus special assessments (if applicable), and Mello-Roos fees (if applicable).
Consumers must be aware that tax rates for a specific area can increase as news bonds are added or decrease if bonds are repaid. Moreover, Special Assessments (if any) for new infrastructure also can impact tax rates.
When considering purchasing real-estate, single-family homes, condominiums or townhomes in Hillcrest (particularly in newer communities), prospective buyers should determine whether the exact property has Mello-Ross or other Special Assessment fees, the length of time these fees continues, and when the fees increase annually.
Over One million tax bills are sent annually in San Diego County through the County Tax Collector. The tax period in Hillcrest covers the time scale from July 1st to June 30th. The amount owed is dependant on the assessed property's value by January 1st. The goverment tax bill is sent out in September or early October, and is due in two equal installments; first payment is born December 10th along with the second payment is due April 10th. State regulations doesn't permit extensions to cover the goverment tax bill and late payments are susceptible to a problem of 18% APR. For the people desperate to pay by credit card, the Discover Card may be the only option currently.
To find out more about property tax issues in Hillcrest or get a definitive solution to your home tax questions, contact the Los angeles County Assessor or perhaps your tax professional.
