California Property Tax
Framework
California property tax is governed by Proposition 13 and Article XIII A. Candidates must know that real property is assessed at its base-year value, adjusted annually by an inflation factor capped at 2%, and reassessed at full market value on change of ownership or new construction.
Key concepts
Understand the roles of the county assessor, the assessment appeals board, and the Board of Equalization. Know the homeowners' exemption, the supplemental assessment process, and the rules on transfers between family members and transfers to certain entities. Familiarize yourself with possessory interests and the treatment of personal property.
Traps
Frequently tested: the 2% cap applies to the inflation adjustment, not to the total tax bill, and a change of ownership triggers reassessment. Another trap: the family transfer exclusion requires specific conditions. Questions often confuse the assessment appeals deadline with the tax payment deadline.
Rule of thumb
Base-year value plus up to 2% annual inflation, reassessed on change of ownership or new construction.
Worked example
A home purchased for $500,000 has a base-year value of $500,000. In a year with 2% inflation, the assessed value rises to $510,000, and the tax is the assessed value times the applicable rate.