Property taxes are collected in 2 payments starting July 1 through June 30. The First installment is due Nov. 1 and past due Dec. 10. This payment covers the first 6 months from July 1 – December 31. The second payment is due Feb 1 and is past due April 10. This covers the 2^nd 6 months January 1 – June 30.

Most people wait until just the past due date to pay. If you have an impound account, the lender does not send the money until around December 8 and April 5. But these taxes are due and payable on the dates above whether you are refinancing, selling or buying. If they are due, they need to be paid before the transaction is completed or through escrow. Prorated taxes are not a part of refinancing. If they are due, then they must be paid in full. For sales, an example will show how property taxes are paid through escrow.

Let’s say the transaction closes on June 15. The property taxes were paid back in April for the period January 1- June 30, but the seller did now owe taxes after June 15^th to June 30^th. The buyer owes the 15 day period from June 15 to June 30. So the buyer pays the seller the prorated share for those 15 days.

Now let’s day the closing date is July 31. Those property taxes are not due until Nov 1. The buyer will be the one getting the tax bill for Nov 1. The seller has not paid these taxes, because they are not due, but the seller has owned the property for 31 days into the first period. So the seller owes the buyer 31 days of property taxes that will be paid through escrow. So the buyer will get a credit.

If real estate has been purchased in San Diego County before around 2010, then it would be a very good idea for owners to look into the process of appealing their tax assessment. Chances are probably pretty good that the assessed value on real estate has decreased dramatically, but many properties have not had their assessment properly adjusted. Think about the property owner that purchased in 2004 at a price of $800,000. That same home could be worth $500,000 or even less in today’s market. If the assessed  value is still based on the $800,000 then that owner is paying a lot more in property taxes than he or she should. This is not a difficult process. The link below will show you exactly how to do it. You don’t need to pay anyone else to handle this process. You can do it all yourself. There is a lot of advertising out there now with individuals or companies promising to get your property taxes lowered for a fee. Don’t do it. It is a waste of money. The most important part of the appeal process is being able to provide comparable sales, in the area of your home, that closely mirror your own home. The easiest way to do this is to talk to a real estate agent or broker. They can give you details about properties that you can’t find on the internet. Above all don’t use websites like Zillow. Their estimations of value are not what you want. Zillow’s estimations of value are not accurate. This brokerage will be more than happy to provide you with comps that can be used in the appeal process and at no cost.

San Diego County Tax Assessment appeal process

When you are about to purchase a home in the County of San Diego, it is probably a good idea to check the property tax rate for the city within the County of San Diego.  Most buyers just 1%. That will not be true. Every city in the county has a different tax rate.  Click below to find the exact tax rate.

Click here for city property tax rates

Any California resident 55 years or over selling their principal residence and purchasing another needs to be well aware of California propositions 60/90/110. These propositions can save them a lot in future property taxes.

1. What are Propositions 60, 90 and 110?

Propositions 60, 90, and 110 are constitutional amendments approved by the voters of California. They provide for the transfer of a property’s base year value from an existing residence to a replacement residence, under certain conditions, for qualified persons over the age of 55 or persons of any age who are severely and permanently disabled.

2. What are the conditions that need to be met in order to qualify for the exclusion?

a. Both properties must be located in the same county, unless the county in which the replacement residence is located has an ordinance that allows intercounty base year value transfers.

b. As of the date of transfer of the original property, the transferor (seller) or a spouse residing with the transferor must be at least 55 years of age, or be severely or permanently disabled.

c. At the time of sale, the original property must have been eligible for the Homeowners’ Exemption, or entitled to the Disabled Veterans’ Exemption.

d. Generally, the replacement dwelling must be of equal or lesser value than the original property.

e. The replacement dwelling must have been acquired or newly constructed within two years of (before or after) the sale of the original property.

f. The owner must file an application within three years following the purchase date or new construction completion date of the replacement property.

g. The original property must be subject to reappraisal at its current fair market value. Therefore, transfers of the original property that are excluded from reappraisal (e.g., most transfers between parents and children) will not qualify.

Find more information here