A buyer in San Jose purchases a home for $800,000 using a conventional loan with 20% down payment. Under Proposition 13, the base property tax rate is 1% of assessed value, plus a local Mello-Roos assessment of $2,400 per year. What is the buyer's total annual property tax in the first year?
Correct Answer
A) $10,400
Under Prop 13, the assessed value at purchase equals the purchase price: $800,000. Base property tax = $800,000 × 1% = $8,000. Mello-Roos = $2,400. Total = $8,000 + $2,400 = $10,400.
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