Whether or not you are a homeowner, you probably hear quite a bit about Proposition 13. Did you know that Prop 13 says your property tax cannot go up more than 2% per year, no matter how high inflation gets? Since Prop 13 was passed in 1978, inflation has usually been higher than 2%, so California homeowners have come to expect their 2% per year incease in their property taxes.
The only divergence from 2% was in 1999 when the Consumer Price Index (CPI) went up 1.85% and in 2004 when the CPI Went up 1.86%.
We may, however, be looking at brand new ground for Porposition 13 this year. The CPI calculation year runs Novermber to October, and is currently running a negative amount for the year so far. While the language of Prop 13 does not address negative inflation, logic would dictate that if a 2% gain results in a 2% increase, a 2% decline should result in a 2% decrease.
Good news, right? It would be except, everything that I am reading is saying that the State of Taxifornia is just not going to allow that to happen. There is no official word from the State Taxislature or Board Of Taxilization at this point, but be ready for some property tax controversy once the CPI year officially closes at the end of October.
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