JAK | Buyers About Property Tax

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THE TAX YEAR - Property taxes are charge on a fiscal year beginning on July 1 and ending June 30. Taxes are billed in two equal installments. Tax bills are sent to homeowners in the last week of October. The first installment, which covers the period from July 1 through December 31 is delinquent if not paid by December 10. The second installment, which covers the period from January 1 through June 30, is delinquent if not paid by April 10. HOW TO CALCULATE PROPERTY TAXES - In most cases, the assessed valuation in your first year of ownership will be the same as the purchase price. It may be increased by up to 2% per year for each year you own the property. HOME OWNER'S EXEMPTION - If you own and occupy a dwelling on March 1 as your principal place of residence, you are eligible to receive a reduction of up to $7,000 of the dwelling's taxable value in the form of a Homeowners' Exemption. To receive this exemption, you must file a claim with the Assessor. Once you receive the exemption, it is not necessary to file each year as long as you own and occupy the residence. MELLO-ROOS COMMUNITY FACILITY DISTRICTS - Mello-Roos districts are designated areas, which have issued bonds for community facilities, e.g., earthquake retrofitting of schools, and for which annual tax levies are collected as a part of the property tax billing. There are two districts in San Francisco. One encompasses the entire city and the other is a small area of South of Market. The cost for the Mello-Roos Community Facility Bonds in most parts of San Francisco is $32.10 for a single-family residence. SUPPLEMENTAL TAXES
Upon change of ownership, the Assessor's Office will reappraise the property and will bill the new owners for any difference in taxes resulting from a higher assessed value. The Assessor will issue a supplement assessment bill which is prorated based on the number of months remaining in the fiscal year ending June 30.

Property taxes will be a substantial part of your monthly payment. Jennifer will help you calculate what the figure will be.

EXAMPLE The San Francisco Tax rate for 1998/99 is $1.165 per $100 value ($1.00 rate based + 16.5¢ fir indebtedness). The property tax would be calculated as follows for an owner occupied property with an assessed valuation (generally the purchase price in the first tax year after purchase) of $400,000. FULL CASH VALUE = $400,000 less homeowners' exemption $7,000 = $393,000
Because the rate is $1.165 per hundred of full value, divide by 100 to get a tax factor: $1.165 / 100 + .00165
TAX CALCULATION: Multiply the rate times the full cash value $393,000 x .01165
TAX AMOUNT: $4,578.45 + community facility tax = $4,610.55

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