If you are considering investing in property in San Bernardino County, you probably have many questions about the local property taxes. It’s important to fully understand all the costs in order to make a sound investment. Here are some important facts about San Bernardino property tax that every investor and homeowner should know.
6 Things Investors and Homeowners Need to Know About San Bernardino Property Taxes
- How Property Taxes Are Calculated
- How to Pay Property Taxes in San Bernardino
- Property Tax Rate in Victorville, CA
- Property Tax Rate in Fontana, CA
- Property Tax Deductions
- Property Tax Exemptions
Real estate taxes in San Bernardino County are not tied to a person or a household, but rather to physical property. In addition to multi-family and single-family homes, property taxes also apply to personal property, which includes items like boats, vehicles, collector ownerships, and airplanes. The term “personal property” may also refer to items and materials used for a business you own, such as furniture, electronics, and other workplace property. These are also subject to California property tax based on their assessed value.
Property taxes are collected for the purpose of funding public services and amenities, such as education, transport, government projects, and other local projects. These taxes are used exclusively for local projects and services and do not fund any larger government needs.
1. How Property Taxes Are Calculated
The method for calculating property taxes in San Bernardino County is fairly complex. The tax assessment is based on a mathematical formula that leaves some property owners feeling somewhat overwhelmed. For this reason, it may be a good idea to work with a tax expert who can ensure that you are calculating your taxes correctly. There are also several online tax calculators you can use to help work out what you owe.
The math involved to calculate San Bernardino property taxes is so elaborate that you generally cannot find a straight property tax rate listed. Rather, you must take into account the median home values and annual tax amounts across the county. A rough estimate can be said to be about 1.15 percent.
Property taxes are requirements for property owners everywhere in the country. However, the tax rate and the way these taxes are calculated can vary widely from state to state. Property tax is calculated based on the assessed home value. To determine your annual property tax due, a San Bernardino County tax assessor will review your property and make an estimate.
California’s property tax laws are largely based on Proposition 13, an amendment to the California state constitution that was passed in 1978. This amendment ruled that property tax is to be calculated by multiplying the assessed value of a property by the California state tax rate. Proposition 13 requires California residents to pay 1 percent of their property’s assessed value in property taxes. Your purchase of the property establishes the base year. It should be noted that the caveats of Proposition 13 only apply to actual property, not personal property.
Property taxes in San Bernardino County are based on the assessed value of your property, which can be different than the price of the sale. This means that the San Bernardino County Tax Assessor determines the value of your property by assessing and comparing it to the other properties on the market. The Tax Assessor’s office is responsible for all San Bernardino property tax records. This pay office is a valuable resource for anyone who wants to open an appeal concerning the assessed value of their property. Thanks to Proposition 13, California has a unique situation when it comes to property taxes.
2. How to Pay Property Taxes in San Bernardino
There are several ways to make a San Bernardino County property tax payment. You can visit the San Bernardino County tax collector’s office and pay in person. However, the county also provides a secure online payment option through the County Treasurer’s website. This is the safest way to pay your San Bernardino property tax bill online. You can pay by eCheck to avoid fees or by credit card if you are willing to pay a small fee.
San Bernardino property taxes are due by April 10th of every year. This is the last day that property owners can pay their taxes without accruing a penalty. Other questions can be directed to the San Bernardino County Property Tax Director, the San Bernardino County Tax Collector, or the Board of Directors.
3. Property Tax Rate in Victorville, CA
Located in San Bernardino County, the city of Victorville is subject to the property taxes imposed on the rest of the county. The tax rate is roughly 1.15 percent, as in the rest of the county. However, bear in mind that the tax rate in San Bernardino County is based on a complex formula, so you should consult with a professional or use an online California tax calculator if you plan to pay property taxes in Victorville.
4. Property Tax Rate in Fontana, CA
Like Victorville, the city of Fontana is located within the limits of San Bernardino County. This means that property is also taxed there in accordance with California state law and San Bernardino County law. If you own property in Fontana, California, you can expect to pay roughly 1 percent of the assessed value of your personal property. For more insight into how much you should expect to pay in property taxes, it’s a good idea to consult with a professional tax advisor.
5. Property Tax Deductions
The Tax Cuts and Jobs Act Bill passed in 2017 limits the number of possible deductions for real estate owners. Old federal tax laws stated that the entire amount you paid each year on property tax was deductible. Now, however, deductions are capped at $10,000. This cap includes not just property tax, but also income and sales tax. It may be wise to review your income and sales tax rates. If your deductions already exceed $10,000, then you may not deduct property tax, as well.
6. Property Tax Exemptions
Many people are curious to find out if they qualify for an exemption on their property taxes in San Bernardino County. This is an understandable question since no one wants to pay more taxes than required. However, only certain people qualify for exemptions under state and federal law, so you may need to do some research to find out if you qualify, too.
Property owners who are above the age of 55 may qualify for several different exemptions. One such example, known as a parcel tax exemption, refers to the option for seniors above the age of 65 to opt out of paying property taxes that provide revenue for public amenities and services like those needed by school districts. These exemptions vary on a county-by-county basis, so you will have to do some research to find out if your county allows these exemptions and, if so, how to apply.
Exemptions also exist for disabled veterans who meet a number of different criteria. These also apply to the family of a veteran who died in combat or as a result of injuries that occurred while serving in the military. These exemptions may vary wildly in amount but could potentially save homeowners an enormous amount of money in a single year. There are also a variety of other exemptions possible for disabled veterans — and even veterans who are not disabled.
You may also qualify for the Homeowners’ Exemption. This exemption applies exclusively to properties that are used as the owners’ main residence. It allows for as much as $7,000 to be exempt from property taxes. This opens you up to reassessment based on the newly-calculated assessed value of your home. Other exemptions or adjustments exist based on a change in ownership and other factors. A qualified tax expert can ensure that you have no extra tax bills that you have not noticed, like an unclaimed property tax, which can put you into a higher tax bracket.
These are highly effective ways to lower the assessed value of your property or to qualify for exemptions under California law. However, none of these solutions allow you to bypass paying property taxes completely.
One of the best and most straightforward ways to lower your tax liability is to lower your taxable income. Thankfully, this does not mean that you need to quit your job or actually make less money. The best way to cut back on your taxable income is to funnel money to a retirement account such as a 401k. The money contributed to the account deducts from the gross amount of taxable annual income you have.
How Does San Bernardino County Compare to Other Cities in California and the United States?
California, as a whole, has a lower annual property tax rate than most other locations around the United States. National average property taxes are 1.19 percent, while the California average is 0.79 percent. San Bernardino County, however, is among the cities with the highest median property tax rate in the country. On average, San Bernardino County homeowners pay roughly 2.87 percent of their annual household income in property taxes. The median amount paid each year by taxpayers for property taxes in San Bernardino County is $1,997. For reference, compare to real estate in San Diego County ($2,955), Orange County ($3,404), and Sacramento County ($2,204).
California’s low tax rate is a direct result of Proposition 13. This proposition amended the California state constitution in 1978 and capped the property tax on a home at 1 percent of its monetary value at most. To prevent severe tax hikes, yearly property value appreciation is also capped at 2 percent.
San Bernardino County Property Taxes
Calculating property taxes in San Bernardino County offers many challenges. Proposition 13 means that California property taxpayers enjoy a limit on the amount that they can be taxed. However, this proposition does not apply to taxes on personal property, which includes luxury items like boats and planes.
Property taxes in San Bernardino County are based on the assessed value of your property. If you think the value of your property needs to be reassessed or if you think you qualify for an exemption, contact a tax professional or the local tax collector’s office.
When you are paying a San Bernardino County property tax, you should always be aware that you may be paying too much. This is because property taxes are calculated based on assessed value, not actual value. Anderson Advisors can help you review your San Bernardino property tax records, such as the assessor’s parcel number and more, to find out if you have been overpaying your property tax in San Bernardino County. We can help you file an appeal and apply for property tax refunds. If you need help with your San Bernardino County property taxes, contact Anderson Advisors today.
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