A California property has a Proposition 13 assessed value of $800,000 with a base tax rate of 1%. The property is also subject to a Mello-Roos CFD special tax of $4,500 in Year 1, which increases 2% annually. Assuming the Prop 13 assessed value increases by the maximum allowable 2%, what is the total property tax bill in Year 2?
Correct Answer
B) $12,750
Under Proposition 13, the assessed value may increase by a maximum of 2% per year. Year 2 assessed value: $800,000 × 1.02 = $816,000. Year 2 base tax: $816,000 × 1% = $8,160. The Mello-Roos special tax also increases 2%: $4,500 × 1.02 = $4,590. Total Year 2 tax: $8,160 + $4,590 = $12,750.
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