#62: Prop. 13 & Property Taxes in San Francisco

Today on Escrow Out Loud, our San Francisco Real Estate podcast, we cover one of the dreaded certainties of life, taxes; how property taxes work and how they are calculated.[00:21] Before the taxpayer rebellion in 1978, that led to a change in proposition 13, looking at how properties were assessed in California, the county would asses property value and tax accordingly. Since the change in proposition 13, however, property taxes are capped at 1% of the purchase price of the property. Are there any other additions to this we should be aware of and do we still need to be worried about any increases in property value the next year?We break it down by looking at an example.[06:29] So, this probably sounds like a pretty good thing in the current market, with increasing property values, but what happens in a downturn?Britton points out that another important aspect to be aware of is that the tax assessor’s office is in touch with the department of building inspections. What does this mean exactly? Well, they will be aware of any permits for improvements/expansions on the home and can therefore choose to re-asses in certain cases.[08:55] When and how are the property taxes paid? Bills come out in October and can be paid in two instalments; 1st due Nov 1, delinquent. Dec 10.and the 2nd due Feb 1, delinquent April 10. There are also numerous payment options including, check by mail, online payments, or at the assessor’s office. But what happens if a tax payment is due while you are in escrow and what purchase price is used in this scenario?[13:43] To wrap up, we talk about new construction, what can happen when the assessor’s office significantly drags behind in keeping records up to date and what the penalty is on not paying your taxes on time!Thank you for listening. If you enjoyed this episode leave us a review on your favourite platform, tell your friends and don’t forget to join us again next week! Hosted on Acast. See acast.com/privacy for more information.