Many property owners throughout Napa County and its municipalities will see a smaller-than-usual increase in their assessed value for the 2014-2015 tax year, which begins July 1, 2014 and ends June 30, 2015.
Proposition 13, which regulates the assessment of real property in California, was passed by the voters on June 3, 1978. Unless there is a change in ownership or new construction, the factored base-year value of a property is subject to an annual inflationary adjustment not to exceed 2% (two percent). Thus a property purchased in March 2010 for $100,000 would have a factored base-year value as of Jan. 1, 2013, of $106,120 which is the full annual 2% increase compounded for three years.
In the 37 years since Proposition 13 took effect as of March 1, 1976, there have only been 7 years in which the inflation factor was less than 2%. In only one of those years, 2010-2011, was there a negative inflationary adjustment. For January 1, 2014 the inflationary adjustment will be .00454 (less than one half of one percent), which is the lowest positive number since Proposition 13 took effect. This lower inflationary adjustment will mean that a $100,000 property that would have gone up to $102,000 with a full 2% adjustment will instead be increased only to $100,454. Thus instead of a $21.80 increase in taxes at the 2% level for each $100,000 of value, the increase will be only $4.95. Sewer and other direct charges on the tax bill are not subject to Proposition 13 so there may be greater increases in those areas.
When applied to the $20 billion Napa County assessment roll of local properties with a factored base year value, the lower inflation adjustment will mean that instead of the permitted increase of 2% in assessed value which would result in an additional $400 million of assessed value for all taxing entities, the actual 2014-2015 increase will be approximately $90 million. This lower assessed value increase will impact the tax revenues received by the county, municipalities and school districts.
Please contact Assessor-Recorder-County Clerk John Tuteur at 707.253.4459 or email@example.com with any questions or comments.