Understanding Your Los Angeles County Property Tax Bill

Owning a home in Los Angeles County means receiving an annual property tax bill that can feel confusing or even overwhelming. Your final bill isn't just a single number; it's a combination of three key elements: your property’s assessed value, the county's base tax rate, and additional voter-approved charges. Understanding how these pieces fit together is the first step to ensuring you're not overpaying.

In this guide, you’ll learn:

• How your LA County property tax bill is calculated

• What Proposition 13 does (and doesn’t) protect you from

• Common mistakes that lead to overpayment

• Which exemptions can save you money

• How to file a successful property tax appeal

How Is My Property Tax Calculated in Los Angeles County?

Every LA County property tax bill begins with the Los Angeles County Assessor’s Office, which determines the assessed value of your home. The Los Angeles County Assessor’s Office decides on the taxable value of your property. Once that value is set, the Treasurer and Tax Collector apply the 1% base tax rate (per California law) and add any voter-approved charges specific to your neighborhood.

What Is Proposition 13 and How Does It Work?

California’s laws significantly impact property taxes, providing stability through protections like Proposition 13, passed in 1978. This law, which forms the basis for Los Angeles County’s tax regulations, limits how quickly property taxes can increase. Proposition 13 starts by establishing a base year value for your property when you purchase it. Subsequently, the base tax rate is only 1% of the assessed value. After that, the assessed value can increase by no more than 2% year over year, regardless of the increase in the value of your property on the market.

For long-term homeowners, this means that while taxes will go up over time, they should stay in line with the true value of the property (including changes due to damage, renovations, or other factors).

What Triggers a Reassessment in LA County?

Proposition 13 offers strong protection, but that doesn't mean your property won't be reassessed. Certain events can lead to reassessments, such as when a property changes ownership, when a property is gifted to another party, or when additions are made to the home (such as by adding a new room or story).

Another proposition, Proposition 8, also comes into play with reassessments, as it can allow for a temporary reduction in property taxes if your property's assessed value falls below its market value. This is beneficial for those who may have homes damaged by natural disasters, such as wildfires.

How Often Are Reassessments Done?

Reassessments are reviewed annually, but unless one of the events above occurs, your property’s value will increase by no more than 2% per year. However, local levies and special assessments can still impact your final bill; these are included as line items on your tax bill.

Breaking Down Your Los Angeles County Property Tax Bill

A property tax bill in LA County is made up of several different fees. Understanding each section of your bill is the key to verifying its accuracy and potentially lowering your property tax bill to save money this year.

Assessed Value vs. Market Value

To start with, assessed value refers to the value of your property used to calculate your property taxes. The Los Angeles County Office of the Assessor determines this assessed value and doesn't necessarily correlate with the market value of your property.

On the other hand, the market value is what your property is worth if someone were to purchase it on the market today.

These two values can differ significantly, particularly if you have owned your home for a long time.

For example, since Proposition 13 caps increases in assessed value at 2%, a homeowner who purchased a home in the 1990s for $200,000 could find that their property is only assessed at a value of $350,000 today. Despite that, the house could have a market value of over a million based on today's real estate market.

Voter-Approved Debt and Special Assessments

Voters can approve additional fees, known as debts or assessments, to fund local projects. For example, if a local school needs improvement, voters could approve an additional charge on the property tax to collect funds for that purpose. These changes can be significant, particularly if voters approve multiple measures simultaneously.

Supplemental Assessments and Escape Bills

You may be able to get a supplemental assessment done if you purchase a property or finish major construction during the tax year. This assessment and the subsequent bill would be for the difference between the home's previously assessed value before those triggering events and the new value for the remainder of the tax year.

Escape bills are also important to understand. These bills occur when Assessors determine that homeowners were previously undercharged. These recalculations can then result in escrow bills that charge homeowners the difference between what they should have paid over time and what they actually paid through their property taxes.

Common Mistakes Found on Property Tax Bills

Property tax bills are not always accurate, and errors can result in paying too much for your property taxes. Make sure you review your property tax bill for errors, such as:

• Incorrect square footage

• Wrong property classification (residential vs. commercial)

• Missed exemptions, such as the homeowner’s exemption

• Clerical errors triggering improper reassessment

LA County is large, with millions of parcels being taxed annually. Errors are more common than you might think. Being able to catch them early and file corrections or appeals can save you a significant amount of money on your taxes.

What To Know About Property Tax Exemptions in LA County

The most common property tax exemptions available to homeowners in LA County include:

• Homeowner’s Exemption: The Homeowner's Exemption lowers the assessed value of your primary residence by $7,000.

• Senior/Disabled Veteran Exemptions: The Disabled Veteran Exemption is available to qualifying veterans who have service-related disabilities. It grants relief on property taxes.

• Disaster Relief Exemption: The Disaster Relief Exemption may be available to you if your home was destroyed or damaged by a natural disaster, such as an earthquake or wildfire.

If you believe you qualify for an exemption, act quickly. California does not typically allow retroactive relief. At Ownwell, we can help with the Homeowner's Exemption, which could lower your tax bill.

When and How To Appeal Your LA County Property Tax Bill

If you believe that your LA County property tax bill is inaccurate, you have a right to appeal.

Appeals are filed with the Assessment Appeals Board. The filing window is open from July 2 to November 30 each year. If you miss this window, you will typically have to wait to file the following year.

During the appeal-filing window, you can challenge the assessment of your property. To apply, you will need to include:

• Recent sales of comparable properties

• Professional appraisals

• Corrected records showing conflicts in square footage or the classification of the property

Ownwell helps streamline the appeal process and improve outcomes with no upfront cost. Remember: Proposition 8 grants you the right to request a reassessment of your property if its current assessed value is below its market value.

Take Control of Your Los Angeles County Property Tax Bill

The property tax LA County requests from you isn’t just a bill you should receive and pay. It might contain errors and should be reviewed carefully each year.

Your property taxes represent one of your most significant recurring expenses as a homeowner. By learning how assessments work, reviewing each line item on your bill, and filing for exemptions and appeals when necessary, you can avoid unnecessary overpayments.

You may assume that tax bills are always accurate because they come from the state, but with millions of properties across LA County, errors are common and could involve your property as well. You may be able to save hundreds or even thousands of dollars per year just by taking a second look at your property tax bill.

Review your bill carefully, ensure that all applicable exemptions are applied, and take advantage of Proposition 8 relief if your home’s value has declined due to a natural disaster or other damage. You have a right to appeal.

If you’d like more information on Los Angeles County, CA, property taxes, Ownwell provides guidance, education, and support with no upfront cost, ensuring you’re only paying what you truly owe.