What is Proposition 13?  [top]

Proposition 13, approved by voters on June 6, 1978, established laws governing the valuation of properties in California for purposes of property taxation and set a limit of no more than one percent (1%) of the assessed market value of the property. Property is assessed at its full cash value when acquired through a change of ownership or by new construction. Each year thereafter, the taxable value of the property may increase by no more than the rate of inflation or two percent (2%), whichever is less. There are exceptions to the valuation at the change of ownership.

What is Proposition 8?  [top]

Proposition 8 allows the Assessor to temporarily lower assessments when the market value on January 1 is lower than the factored base year value for that year. Each case is reviewed individually upon request of the property owner. Whenever such relief is provided, the Assessor is obligated annually to review and increase assessed values as market values increase, but never higher than the factored base year value.

What is ad valorem tax?  [top]

The County levies an ad valorem property tax at a rate equal to one percent (1%) of the full cash value. In addition, the rate includes an amount equal to the amount needed to make payments for the interest and principal on general obligation bonds or other indebtedness approved by the voters. The tax rate is per every $100 of the assessed value.

Where do my property taxes go?  [top]

Your property tax bill is comprised of taxes and special assessments and is a lien on your property. Taxes consist of a 1% general levy plus voter approved debt plus any applicable special assessments. Taxes and assessments are specifically identified on your tax bill and are distributed as stated on your bill, with the exception of the 1% general levy (which was established with Proposition 13). See chart on Auditor-Controller main page for Property Tax Distribution on a countywide basis.

In 1979, Assembly Bill 8 (AB 8) was adopted to provide procedures for counties to allocate property taxes. The basic premise of AB 8 allocates to each taxing jurisdiction the amount it received in the prior year, plus the change that has occurred in the current year within its boundaries. The revenue allocation of the countywide 1% property tax levy is calculated pursuant to Revenue and Taxation Code section 96.5.

Under the AB 8 method, the 1979/80 base amount for each local agency within a county was calculated based on the property tax allocated pursuant to Government Code section 26912 for 1978/79 and adjusted for the 1979/80 assessed value growth. The property tax allocation percentage for each agency within a Tax Rate Area (TRA) was then established. These percentages are to be recomputed only when certain activities occur such as TRA consolidation, creation of the unitary roll pursuant to Revenue and Taxation Code section 100, and boundary changes affecting specific TRAs, such as annexations, detachments, dissolution of districts, formation of new districts, city incorporations.

What are special assessments?  [top]

Special assessments are non-ad valorem amounts levied on a per parcel basis which may encompass annual charges for a variety of items to include: charges for services, improvement district charges, 1915 Act special assessments, Mello-Roos community facilities district special taxes, other voter-approved special taxes, special benefit assessments, and fees.

The Auditor-Controller acts as an agent for each agency by placing the special assessment on the tax bill and distributing the tax collected to the agency. Approximately 142,400 special assessment direct charges from more than 174 different districts and agencies are placed on the secured tax roll each year. For information on how to place a special assessment on a tax bill, please call our office at (209) 525-6597.

Direct charges and their corresponding amounts may change with each roll year. For information regarding the direct assessment calculation, contact the district, agency, or city responsible for the assessment. The contact information for each agency is listed next to the charge by that agency on your tax bill.

What is supplemental tax?  [top]

State law requires the Assessor’s Office to reappraise real property upon change in ownership or completion of new construction. The Assessor’s Office must issue a supplemental assessment, which reflects the difference between the prior assessed value and the new assessment. This value is prorated based on the number of months remaining in the fiscal year, ending June 30.

An increase in value will result in a supplemental tax bill reflecting the change in value for the balance of the tax year. In some cases, the market value is higher than the owner’s assessed value in effect as of the January 1 lien date. If this situation occurs, a supplemental tax bill will be issued. Additionally, a supplemental assessment must be made to reflect that new assessed value for the remainder of the fiscal year in which the activity occurred. Due dates for supplemental tax bills depend on when the bill is mailed. All supplemental tax bills are in addition to the annual tax bill.

A decrease in value will result in a negative supplemental tax. Reassessments downward due to a change in ownership or completion of construction result in a negative supplemental assessment. These negative assessments (refunds) do not cause a change to your current annual tax bill, and the annual tax bill must be paid timely to avoid penalties. The annual tax bill must be paid before a negative supplemental refund will be issued.

In some cases, a property changes ownership before a secured or unsecured supplemental bill is issued for a prior change of ownership or completion of new construction. This will occur if you purchase and then sell property within a short period of time. The supplemental tax bill you receive should cover only those months during which you owned the property, and the new owner should receive a separate supplemental tax bill. Because of the large number of parcels and property transfers in Stanislaus County, there may be delays in placing new assessments on the roll.

A Value Notice is mailed by the Assessor approximately 30 days before the Supplemental bill. This notice details the value on which your supplemental tax bill was calculated.

Why did I receive two supplemental tax bills?  [top]

If the change in ownership occurs or the new construction is completed on or after January 1, but on or before June 30, then there will be two supplemental assessments. The first supplemental assessment will be the difference between the new assessed value and the taxable value on the tax roll in existence for these dates. The second supplemental assessment will be the difference between the new assessed value and the taxable value on the next year’s tax roll.

How is my tax bill calculated?  [top]

• Secured Taxes = (Net Assessed Value x Tax Rate) + Special Assessments
• Unsecured Taxes = (Net Assessed Value x Prior Year Secured Tax Rate) + Special Assessments
• Supplemental Taxes = Net Assessed Value Difference x Tax Rate x Proration Period
  
  • In accordance with Revenue and Taxation Code section 75.41, the proration period is from the beginning of the month following the date on which the change of ownership occurred or the date of new construction to the end of the fiscal year on June 30.

What is Mello-Roos?  [top]

A Mello-Roos direct levy is a special assessment imposed on those real property owners within a Community Facilities District. The district has chosen to seek public financing through the sale of bonds for the purpose of financing certain public improvements and services as outlined in the "Mello-Roos Community Facilities Act of 1982." The special assessment you pay is used to make the payments of principal and interest on the bonds. The special assessment will stay in effect until the principal and interest on the bonds are paid off along with any reasonable administrative costs incurred.

Services and facilities may include: police protection, fire protection, ambulance and paramedic services, recreation program services, libraries, library services, parks, parkway facilities, open space facilities, the operation and maintenance of parks, parkways and open space, museums, recreation facilities, child care facilities, cultural facilities, flood and storm protection, services for the removal of any threatening hazardous substance, elementary and secondary school sites and structures, natural gas pipeline facilities, telephone lines, facilities to transmit and distribute electrical energy, cable television lines, and others.

If the annual property tax bill includes a Mello-Roos special assessment and it is not paid in full by June 30, the property may be subject to the accelerated judicial foreclosure process. After June 30, those special assessments subject to the accelerated judicial foreclosure are removed from the unpaid tax bill and the Districts are responsible for collection enforcement.

Mello-Roos special assessments are levied on the tax bill on behalf of the Mello-Roos District and are not levied by the Assessor, Auditor-Controller or Tax Collector. For information or disclosure of a Mello-Roos special assessment levied against property, please contact the Mello- Roos District directly.

What is a 1915 Act bond?  [top]

A 1915 Act bond direct levy is a special assessment imposed on those real property owners within a development area. 1915 Act bonds are for public financing usually for improvements, such as streets, curbs, gutters and underground sewer and water infrastructure that generally enhance land value and give land utility. When a developer finances such improvements through a 1915 Act bond, developers pass on the debt to each home buyer as an assessment bond obligation specific to the buyer’s lot.

If the annual property tax bill includes a 1915 Act bond and it is not paid in full by June 30, the property may be subject to the accelerated judicial foreclosure process. After June 30, those special assessments subject to the accelerated judicial foreclosure are removed from the unpaid tax bill and the districts are responsible for collection enforcement.

1915 Act bonds are levied on the tax bill on behalf of the 1915 District and are not levied by the Assessor, Auditor-Controller or Tax Collector. For any information or disclosure of a 1915 Act bond levied against property, please contact the 1915 District directly.

The Assessor is reducing the assessed value of my property and I’ve already paid last year’s taxes. When will I receive my property tax refund?  [top]

Refunds are normally processed within 30 days of the date when the Assessor certifies the reduction of assessment to the Auditor-Controller’s Office. If you are due a refund, you should first contact the Assessor’s Office at (209) 525-6461to verify that the value reduction has been certified and the date of that certification. To check on the status of a refund for an Assessor certified value reduction, contact the Property Taxes & Assessments Division of the Auditor-Controller’s Office at (209) 525-6597.

The Assessor is reducing the assessed value of my property, and I have not yet paid this year’s taxes. Should I pay the bill I received in the fall?  [top]

Yes. You should pay the property tax bills you received. Penalties may not be forgiven because you were waiting for a revised bill. So, until you receive a revised bill, pay the tax bill you have. If this results in a net overpayment, a refund will be sent to you.

What is the Educational Revenue Augmentation Fund (ERAF)?  [top]

ERAF is a mechanism, enacted in July of 1992 by the State Legislature to shift local tax revenues from cities, counties, and special districts to a State controlled Education Revenue Augmentation Fund. The State uses this fund to reduce its obligation to the schools. ERAF funds have been used by the State to help school and community college districts meet minimum funding requirements.

What property tax information can I access on this Website?  [top]

The following property tax information is available from this Website:

• Certified Values by tax year
• Secured Tax Rates by tax year
• Unsecured Tax Rates
• Final Trial Balance for Local Agencies
• Viewing Property Assessments
• Viewing and paying Tax Bills

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