What is California Proposition 13?
California Proposition 13, or Prop 13, is an amendment to the California Constitution that passed in June of 1978, ensuring that property owners are assessed a fair market value for their property at the time of purchase. The original purchase price of the property then becomes the value on which annual tax increases are based and tax bills are issued. Under Prop 13, the rate of increase in assessment is not to exceed 2% annually.
What This Means for Property Owners
There is some controversy surrounding the impact of Prop 13 on property owners. Some would characterize this amendment as being both a blessing and a curse. Prop 13 uses the property’s original purchase price as the base value for taxation, resulting in a severe variation of tax bills.
To put this into context, two parties with an identical house on the same block can pay two different amounts based on when they purchased their property. The party that owned their property longer will pay a lower tax bill assuming that each property’s current value is equal.
What This Means for Counties in California
Proposition 13, among other variables, has resulted in a significant rise in the amount of property tax assessment appeals filed in local California counties. If property owners disagree with the assessed value of their property, they can file an appeal with the county.
Tracking and managing assessment appeals has become a massive challenge for counties due to complex, manual, and paper-based processes that are extremely time-consuming and result in extended turnaround times.
AST’s Solution Saves Time and Money
AST’s Assessment Appeals and Exemptions solution is purpose-built for counties in California and across the United States who face inefficiencies in the management of their property tax assessment appeals. Our solution automates and streamlines property tax assessment appeals and exemptions in the cloud, delivering completely remote administration of the entire process, as well as features like automatic postponements, smart letters, automated workflow, email notifications, and robust analytics. Built on the Salesforce platform, AST Assessment Appeals and Exemptions implements best-practices for county governments, saves citizens time and provides them increased visibility, and reduces county costs and processing time.
Learn more about how AST’s Assessment Appeals solution provides municipal governments the missing pieces to the appeals management puzzle – automation, efficiency, and centralized, accurate data.