About Property Taxes

Your property tax is based on the assessed Full Market Value of
your home at the close of escrow, which is typically the sales price.

Property taxes are charged on a fiscal year beginning July 1 and ending June 30. Hence tax years are referred to as 2013/2014 or 2014/2015. Taxes are billed in two equal installments. Tax bills are sent to homeowners in the last week of October. The first installment, which covers the period from July 1 through December 31 is delinquent if not paid by December 10. The second installment, which covers the period from January 1 through June 30, is delinquent if not paid by April 10.

In most cases, the assessed valuation in your first year of ownership will be same as the purchase price. It may be increased by up to 2% per year for each year you own the property.

If you own and occupy a dwelling on March 1 as your principal place of residence, you are eligible to receive a reduction of up to $7,000 of the dwelling’s taxable value in the form of a Homeowners’ Exemption. To receive this exemption, you must file a claim with the Assessor. Once you receive the exemption, it is not necessary to file each year as long as you own and occupy the residence.

Mello-Roos districts are designated areas which have issued bonds for community facilities, e.g., earthquake retrofitting of schools, and for which annual tax levies are collected as a part of the property tax billing. There are two districts in San Francisco. One encompasses the entire city and the other is a small area South of Market. The cost for the Mello-Roos Community Facility Bonds in most parts of San Francisco is $32.10 for a single family residence.

Upon change of ownership, the Assessor’s Office will reappraise the property and will bill the new owners for any difference in taxes resulting from a higher assessed value. The Assessor will issue you a supplemental assessment bill which is prorated based on the number of months remaining in the fiscal year ending June 30.

Example: The San Francisco Tax rate for 2012/13 was set at $1.1718 per $100 of property value.

The resulting property tax for an owner occupied property with an assessed valuation of $1,000,000 would be as follows:

Assessed Property Value = $1,000,000 Homeowner's Exemption Adjustment = $7,000 Adjusted Assessed Property Value = $993,000 Multiplied by the Tax Rate Factor x .011718 Estimated Annual Tax Calculation = $11,636

Please note: Tax Calculation figure has been rounded. This example does not include an adjustment for the “Mello-Roos” annual payment. For more detailed and accurate figures, please see your CPA.

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San Francisco Real Estate Group
San Francisco Real Estate Group