California Property Tax Law

California property tax law values property at its fair market value, typically assessed at purchase or upon change of ownership, with annual reassessments generally limited to a 2% maximum increase. Homeowners can benefit from exclusions like the Homeowners’ Exemption, reducing the taxable value by up to $7,000. Proposition 13 caps the property tax rate at 1% of the assessed value, plus local voter-approved taxes. Additionally, Proposition 58 provides transfer exclusions between parents and children, and Proposition 19 allows certain property transfers to reduce or eliminate new taxes. Property taxes fund local services and infrastructure.