Every tax base in California trends from 0-2% every year, this percentage trend is based on the Consumer Price Index pertaining to inflation. Generally, most Californians pay about 1.25% of their assessed value in actual property taxes per year. So if you bought your property for $100,000, your base value would be $100,000. Since you would pay 1.25% of the assessed value, your tax bill the first year would be approximately $1,250. That base value stays the same, the only change is that it trends no more than two percent every year. So the second year you owned the property the trend would max out at a $2,000 increase based on the 2% limit. Your assessed value would increase from $100,000 to $102,000 which means your taxes would increase from $1,250 the first year to $1,275 the second year. There are years where the trend percentage is lower than 2% and again that number is based on the Consumer Price Index.
There are values that are applied to an assessed value where the assessed value would not trend. For example, if a property has a Prop 8 value (decline in value due to market decrease) the value will not trend. Instead the value is reviewed each year by the Assessor’s Office to determine if it should be adjusted. Also if there is a Disaster Relief value applied to a property the value will not trend, instead the Assessor’s Office will visit the property each year to see where the property owner is at with repairs and will either adjust the value or leave it depending on what has been done. Additionally, most exemptions for the disabled and/or veterans have exemptions from trending also. The general rule of thumb is that your base value will trend up to 2% per year compounded every year unless there is some sort of special value or exemption that would apply.
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