Under California's Proposition 13 system, the annual ad valorem property tax bill on a home is computed on which value?
Correct Answer
A) The assessed value carried on the county roll
Article XIII A of the California Constitution, added by Proposition 13, limits the ad valorem tax to 1 percent of the property's assessed value and caps growth in that assessed value at 2 percent a year. The county assessor sets a base year value at full cash value when the property changes ownership or new construction is completed, then carries it forward with the inflation adjustment on the local assessment roll. The tax bill is figured on that roll figure, so a long-held home is usually taxed on far less than it would sell for today.
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A transfer tax is a tax imposed by state, county, or local government on the transfer of real property from one owner to another. It is typically based on the sale price or a flat rate per dollar of consideration.
An abstract of title is a condensed history of all recorded documents and proceedings that affect the title to a specific parcel of real property. It is a summary, not a guarantee, of title condition.
Actual notice means a person has direct, personal knowledge of a fact or interest in real property. This can come from being told, seeing something firsthand, or any form of direct awareness.
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