Looking to dip your toes in Los Angeles County real estate? If so, you will want to learn more about your favorite neighborhood’s affordability, lifestyle, safety levels, quality of education, and convenience to work and leisure destinations. However, there is one consideration you cannot afford to ignore - Los Angeles County property taxes. Below are essential facts you need to know about these levies.
What is Property Tax?
Also typically referred to as ad valorem tax, property tax is a levy imposed on properties, primarily land and building. Property taxes in the US can vary from state to state and cities to cities. In 2019, Los Angeles brought in $1.6 trillion in property tax assessments, up by 6.25% from the 2018 tax roll.
Los Angeles County property tax comprises several factors. First, the general property levy applied across the California State. Next, a voter-approved may apply depending on the property's location. If your property is located in a special district or school district, expect to pay additional property tax.
In compliance with proposition 13, the general property tax is 1% or $100 for every $10,000 assessed value. The total amount of property tax in Los Angeles County cannot be increased by over 2% from the previous year unless improvements are made to the property or ownership changes.
When a property changes hands, the county’s assessor’s office reassesses it to update its taxable value to the fair market value or purchase price. Contrarily, special district rates and voter-approved indebtedness change yearly. Note that additional amounts may be added to your property tax bill as special evaluations of various taxing authorities operating within the municipality where your property sits.
A professional Los Angeles County real estate expert will have more connections to assist you for the essential facts you need to know about the property tax.
How LA Property Tax System Works
The precise property tax amounts in LA County are determined when city & county agencies, registrar-recorder, and country clerk submit copies of all permits issued, all deeds, and other vital documents to the County Assessor.
When evaluating the property value, the County Assessor takes into account improvements to the property, changes in ownership, and exemptions. The Auditor-Controller's office receives the assessments and applies tax rates to each parcel in Los Angeles real estate based on location and taxing jurisdictions. Next, LA County Treasurer and LA Tax Collector office mail the tax bills, collects payments and deposits them in the County Treasury.
Lastly, the Auditor-Controller allocates the funds to over 900 taxing authorities in the county, including cities, schools, and special districts.
Reach out to the Park Regency Realty for professional assistance about property taxes in Los Angeles County, California.
Give us a call now at 818-363-6116 or contact us today!
Los Angeles Property Tax Deadlines
In Los Angeles County, land and building owners and occupiers pay property tax in two installments over the fiscal year.
The LA County Treasurer and Tax Collector’s office send out tax bills in October. You, as the property owner, should pay the amounts due by the stipulated deadlines. The first installment of LA property tax is due by November 1st and is considered delinquent after December 10th. The second installment’s deadline is February 1st and is considered late after April 10th.
Late payments can attract a 10% penalty on the first installment and a 10% penalty plus a $10 charge on the second installment.
Should Property Tax Determine Where You Should Invest in Los Angeles County Real Estate?
To answer this question, let us examine the property taxes in a few LA cities. But first, take a look at the following comparison of assessed property taxes (county tax plus local tax) for some LA neighborhoods arranged in descending order:
- San Fernando: 1.463421%
- Lakewood: 1.114851%
- Malibu: 1.102020%
- Downey: 1.087909%
- Beverly Hills: 1.087422%
- Westlake Village: 1. 081784%
The above percentages are based on single-family homes in the communities; however, they do not account for special assessments by the cities.
Suppose you are interested in San Fernando, Beverly Hills, and Westlake Village housing markets. The corresponding annual property tax for a $500,000 property would be $7,317.11 in San Fernando, $5,437.11 in Beverly Hills, and $5,408.92 in Westlake Village. Assuming all things stay constant for five years (which is hard for Los Angeles County real estate), a San Fernando resident would pay $9,540 more property taxes than a Westlake Village resident for a similar property.
Find Your Home in Los Angeles
This far, you know what to expect for Los Angeles County property taxes. The next step is finding a home that matches your needs and budget.
Committed to your satisfaction, real estate professionals at Park Regency Realty can harness their in-depth experience and knowledge in Los Angeles County real estate to help transform your LA dream home into a reality. Please check out our LA property listings to see options currently available to you. Else, call now at 818-363-6116 or contact us online for a personalized discussion about your specific housing needs. We are more than happy to help.