Navigating property taxes can be daunting, but understanding key elements like the Homeowners’ Exemption and Proposition 13 can lead to significant savings for California homeowners. This blog post delves deeper into these aspects, highlighting how Ownwell can assist in leveraging these opportunities to your advantage.
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Understanding the Homeowners’ Exemption
The Homeowners’ Exemption in California is a valuable tool for reducing property taxes. By applying for this exemption, the assessed value of your primary residence is lowered, which directly impacts the amount of property tax you owe. Here's how it works:
Exemption Amount
When you apply for the Homeowners’ Exemption, a portion of your home's assessed value is exempted from taxation. In California, this exemption typically reduces the assessed value by $7,000.
Annual Savings
Though the savings might seem modest, they accumulate year after year, offering long-term financial relief.
Eligibility
This exemption is available for your primary residence, ensuring that homeowners, not investors, benefit from this exemption.
Key Deadlines and Details
To receive the full 100% exemption, you must file by February 15th. Missing this deadline doesn't mean you've lost the opportunity entirely. You can still file between February 16th and December 10th for an 80% exemption. Note that these deadlines are consistent in most counties, but it’s wise to verify with your local county, especially in areas like Los Angeles.
How Ownwell Can Help
Understanding and applying these rules can be complex. Ownwell simplifies this process for you. They offer an end-to-end solution for managing property tax appeals and exemptions, tailored to your specific situation. By partnering with Ownwell, you can ensure that you are not only meeting all legal requirements but also maximizing your savings.
- Expert Guidance: Ownwell's team of experts can help determine your eligibility for the Homeowners’ Exemption and ensure you meet all filing requirements.
- No Upfront Costs: With Ownwell, there's no risk involved. They charge only a percentage of the savings they help you achieve.
- Streamlined Process: Ownwell makes the process efficient and user-friendly, with a quick 5-minute sign-up and ongoing support.
Bonus! Ownwell will evaluate your property for additional saving opportunities through an property tax appeal.
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Proposition 13: A Closer Look
Proposition 13, passed in 1978, fundamentally changed property tax calculations in California. Prop 13 is automatically set on your property, so no need to apply. Understanding its implications is crucial for all property owners:
Tax Rate Limitation
Prop 13 caps the property tax rate at 1% of the property's assessed value, plus any local voter-approved taxes.
Assessment Restrictions
It restricts annual increases in assessed value to a maximum of 2% per year, regardless of how much the market value of the property increases.
Purchase Price Basis
The assessed value for property tax purposes is set based on the purchase price when you buy a property. This means your property taxes are predictable and relatively stable over time, irrespective of fluctuating market values.
Conclusion
The Homeowners’ Exemption and Proposition 13 offer valuable opportunities for property tax savings in California. Understanding these provisions and correctly applying them can lead to substantial long-term financial benefits. Ownwell is your ally in this journey, ensuring that you navigate these complexities with ease and confidence. Take the first step towards reducing your property taxes by connecting with Ownwell today – a small investment of time for a significant financial return.
