San Jose Property Tax YoY change so wild

San Jose, California
Tax, SDIRAs & Cost Segregation
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San Jose Property Tax YoY change so wild

Bei He
Rental Property Investor 路 San Jose, CA 路 Member since 2018 路 37 posts 路 10 votes

I thought in California the property tax can go up max 2% every year. Never really paid much attention until today. 

My condo I bought in 2011. owned 2 years then rented out as long term rental. 

Today I plugged in historical property tax payment data and found the year of year change is wild...

How can this possible? Someone with experience please help to shed some light. 馃ズ

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  • Brad S.
    Investor 路 Pasadena, CA 路 Member since 2017 路 613 posts 路 523 votes
    4y

    Hi @Bei He

    I used to work at my local tax assessor (Los Angeles), so let me help clarify this for you.
    In CA, due to prop 13, the ASSESSED VALUE can increase up to a maximum of 2% per year. You were calculating your PROPERTY TAX increases. Here are your past few years of assessed values:

    Year    Assessed VALUE
    2020 - $350,260
    2021 - $353,888  -  Difference = 1.04%
    2022 - $360,964   - Difference = 2%
    * I'm guessing they reduced the increase to 1.04% for the 2021 year, due to the pandemic, but typically, the assessed value will go up to the maximum 2%

    The actual property taxes are only 1% of the assessed value, due to prop 13, but the actual amount (and %) on the property tax bill is higher, due to local voter indebtedness, special assessments, and local fees. 

    Hope that helps :)

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  • Chad Hale
    Property Manager / Investor 路 San Jose, CA 路 Member since 2013 路 780 posts 路 302 votes
    4y

    @Bei He   @Brad S. has explained most of the differences.

    San Jose also added the yearly garbage bill to the property tax billing a few years back.  Between the garbage bill and all of the add ons, that adds 20-30% to the property tax bill.

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