TAX INFORMATION State Withholding and Real Estate Property Taxes Proposition 13

TAX INFORMATION

State Withholding

and

Real Estate Property Taxes

Proposition 13

State withholding:

In some cases California State Law may require the withholding at close of Escrow estimated Tax's due on the sale. We suggest that you click on the following link to determine if this applies to a sale you are making or considering: State of California

Proposition 13, passed in 1976 is a California Law that regulates Property Taxes with in the State of California. Original passed to protect property owners that had been in their property for many years so that they would not be forced out by increasing property tax.

In General it resets the Real Estate Property Tax on a property every time that it changes ownership based on the Sales Price of the Property at 1% of its value. A example the property sell for $100,000. ,the Annual Property Tax on the property would be $1,000. Each County within the state also has a Base Tax Rate, combined with the 1% mandated by Proposition 13.

Los Angeles County the Current Tax Rate is: 1.25% thus the Property Tax you can expect to pay for a $100,000 property is $1250.00, you may be eligible for a homeowners Exemption in the amount of $7,000, which is deducted from the base of $100,000.00 if so your Property Tax will be computed on $93,000.00. In some cities there are Bonds and Special Assessments that have been levied, to determine the effect on your Taxes you can contact the : Los Angeles County Assessors Office at: (213) 974-3211