Forum Discussion
Nutinelse2do
Mar 13, 2015Explorer
Ron3rd wrote:restlesswind wrote:
, "even California has it's advantages. Property taxes are very low and your purchase price is the tax basis until you sell, so when the property appreciates, your taxes do not rise. There are many Californians who bought their homes years ago and have seen the value increase 10 or 20 fold, yet their property taxes are the same as when they bought the property. That savings can offset a lot of income tax and the other ridiculous fees that California has on virtually everything."
I wish that were true. Property tax in CA can and does increase by 1% per year.
However when property values went out of sight, the prop tax did not rise at the same rate. It jumps to the property is sold.
That is why next door neighbors may have thousands of dollars difference for the same basic home
I lived in CA many years and still own property there.
That's incorrect, CA does not increase property tax by 1% per year. If that were true, I'd be paying about 25% property tax, which I don't. I pay 1% and a small fraction. Your property tax in CA is basically 1% (plus a small fraction) of the purchase price and although it can rise, it is a very, very small fraction of 1%. As noted above, your tax basis is the purchase price. We bought our house 25 years ago for $155K and it's now worth about $600K, but I'm still only taxed on $155K.
Due to Prop 13... Clicky
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