Have you considered the pivotal role Proposition 13 (Prop 13) plays in shaping California’s real estate landscape? In a recent discussion with agents at KALEO Real Estate, they spoke about its significance and impact on homeownership in California. What exactly is Prop 13?

As the Los Angeles County Assessor’s website explains:  “In 1978, the California Constitution was amended by the voters to restrict increases of property taxes. Proposition 13 requires the assessment of each taxable property based on its fair market value and limits a property owner’s general levy tax to 1 percent of the assessed value. For example, an owner of a home assessed at $420,000 will pay a general levy tax of $4,200“*. Essentially, Prop 13 offers homeowners stability amidst fluctuating markets. This proposition limits property tax increases, ensuring that homeowners aren’t blindsided by unpredictable levies tied to market values.

What are the effects of Prop 13? By limiting the general tax, it helps homeowners who are on a fixed budget from having fluctuations in their property tax based on market value. Moreover, “Proposition 13 mandated that a property’s assessed value could not increase by more than 2 percent annually except in the event of a change in ownership, new construction, the property receives a temporary decline in assessed value (Proposition 8), or the property is designated a restricted historical property (Mills Act).”*

Proposition 13 is a benefit that California Homeowners enjoy and might forget about. If you are considering moving out of state, KALEO agents always recommend doing a thorough analysis of the state’s property tax and real estate market because Prop 13 is state-specific.

Real Estate in California is a part of many homeowner’s estate and wealth-building plans. If your 5-year plan includes building or making moves in your real estate portfolio, then please contact me. From wanting to purchase an investment property to consolidating assets or selling 2 properties and combining households, a KALEO agent can help! Buying or selling, a KALEO agent is your REALTOR. 

Someone asked a KALEO agent recently: “Are there still opportunities for buyers right now?” And the answer is yes! KALEO agents love this quote by Thomas Edison –

“Opportunity is missed by most people because it is dressed in overalls and looks like work.”

KALEO agents do the hard work for their clients — home buyers and home sellers — so that they can have opportunities. Look for and seize opportunities with a KALEO agent!


Source: *https://assessor.lacounty.gov/real-estate-toolkit/proposition-13

This content is not the product of the National Association of REALTORS®, and may not reflect NAR's viewpoint or position on these topics and NAR does not verify the accuracy of the content.