How Property is Assessed for Property Tax Purposes

This information sheet explains California’s property tax system, the limits of Proposition 13, and the requirement for the Assessor to enroll the lower of a property’s factored base year value or market value each year. It outlines how base year values are set at market value upon a change in ownership or completion of new construction, unless an exclusion applies. It also clarifies the difference between assessed and market value, what to do if the assessed value is believed to be too high, and why similar properties may have different assessed values.

The sheet further describes how, when a property is in a decline-in-value status, assessed values can rise by more than the 2% annual limit under Proposition 13. It also explains the connection between assessed value and the property tax bill, and identifies the roles of the Assessor, Auditor-Controller, and Tax Collector so taxpayers know which office to contact for specific questions.