As the population of California increased the demand for housing also increased and resulted in property values more and more taxes.

Local taxes – About 35 percent of the total, county and city revenues in California is generated from local taxes, which amounted to about $ 20 billion in 1997-98.

. Property Tax-29 percent
. Optional sales tax-32 percent
. Bradley Burns Sales Tax
. Vehicle license fee-14 percent
. Other taxes-25 percent

Property Tax-An important source of tax revenue for local government, cities, school districts, counties and special districts in California. Since 1849, property taxes have been an important part of the tax structure, California and also one of the sources of income more stable. In 1999-00, the property taxes came to 22.7 billion U.S. dollars. The statewide average current distribution procedure is as follows:

1. Schools – 52 percent
2. Counties – 19 percent
3. Cities – 11 percent
4. Other local authorities – 18 percent

Property taxes applies to all classes as like Timberland, residential, industrial, commercial, agricultural, open space, vacant land and some personal property. The property consists of land, facilities, buildings, mineral rights and other similar components. Personal property is commonly limited to companies and also includes equipment, machinery and aircraft.

Properties of the government or charitable organizations, automobiles, securities, personal and family assets, inventories business are exempt from property taxes.

Property taxes are assessed on the value of real and personal property in the state. County Counselors assess the most properties locally, while some properties are assessed by the state, such as utilities and railways. Before Proposition 13 he became a part of Article 13 of the California Constitution, all properties were assessed in terms of market value and tax rate level applies to fixed local assessed value to calculate the total taxes collected.

Because the induction of Proposition 13 in Article13A, there are many restrictions on property taxes, limiting local government to raise revenues from this tax.

The assessment of local property taxes property is based on acquisition value, while other properties are still assessed in terms of their market value.

. The total assessed value increases each year, according to the rate of inflation or 2 percent.
. In the resale of the property, the new assessment is made at market value, based on the price purchase.

Property Tax Rate: The tax on property around the country is limited to 1 per cent of the total estimated value. Voter-approved debt obligation generally permits the levy. For 1998-99, the average tax rate was 1069 per cent and the highest was 1167 percent of the city and county of San Francisco.

Allocation of property taxes – The share contributed by property taxes to one percent of total revenue varies widely in different organizations government. Under Proposition 13, the state gained Article13A responsibility for the allocation of property taxes among local governments. To reduce state costs, the state government changed the allocation of ownership of the counties, cities and special districts to schools in 1992 and 1993. This transfer was made through a mechanism known as Increased revenues Educational Fund or ERAF.

The issues of property taxes:

. Fair taxes in recent assessment methods lot owners could pay different taxes based on the date of purchase of your property.

. Personal Property Assessment-There many issues arising in the use of appropriate methods for assessing the value of personal property, because it mainly affects companies.

About the Author:

California Tax Help is available with CPA Firm Murray and Young. Get a former IRS agent on your side to protect you, your family and your investments. Visit us at http://www.april15.com

Article Source: ArticlesBase.com – California Local and Property Taxes

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