Assessed and Taxable Values

  1. Property Assessment Example
  2. Taxable Value

Since the beginning of Proposal A in 1994, overall increases in SEV have generally been greater than the increase in taxable value capped at the CPI. The longer a property has been owned and capped, the greater the gap between the SEV and taxable values.

This example illustrates a property purchased in 2013 and uncapped in 2014. We will also assume that there has been no demolition or construction during this time.

YearCPI (%)CPI (Decimal)SEVCapped ValueTaxable ValueNote
20141.61.01666,50061,79266,5002013 transfer of ownership
20151.61.01669,80067,56467,564CV is the lower calculation
20160.31.00373,20067,76667,766CV is the lower calculation
20170.91.00976,10068,37568,375CV is the lower calculation
20182.11.02178,40069,81069,810CV is the lower calculation

In this example, taxable value will never be higher than the SEV.

Breaking it Down

To explain example Number 1, in May of 2013, this home was sold. At the time of sale, this home had a current SEV of 63,300 which indicated the value of this home was $126,600 on December 31, 2012 (tax day). It also had a taxable value of $47,200. This means that the home was worth $126,600 but it was taxed as if it were worth $94,400 (2x taxable value). This is Proposal A in action. Prior to Proposal A, homeowners were taxed on the SEV.

2014

In 2014, the property "uncapped" and the 2014 taxable value was equal to the SEV.

2015 to 2018

During the years of 2015 to 2018 the market value of this home increased as reflected in the increase in the SEV. The taxable values also increased, but at a lower rate than the market value. Over time you can see a gap between the SEV and TV. This is because the assessed and taxable values increased at different rates.