Under California’s Proposition 13, real property is taxed at a rate of 1% of assessed value. Assessed value is determined by the County Assessor. Generally assessed value is set according to market value of the property as demonstrated by sales of similar property. Once assessed value is determined for a property it cannot go up more than 2% per year unless the property is sold. At that time the property’s assessed value will once again be established according the sales price.
In market conditions where property values increase from year to the next, the property owner will be protected under Proposition 13 by limiting the increase in assessed value to a maximum of 2% even though market value of the property may have increased beyond 2%. The 2% maximum protection will continue in place until the property is sold at which time a new assessed value will be determined based upon the sales price of the property.
In market conditions where property values may have decreased from the year below it is possible that the assessed value of a property could actually be more than the current market value of the property. Property owners can request a lowering of the assessed value of their property. The County Assessor may have chosen to do this automatically without the necessity for the property owner to make a formal application to have a property’s assessed value re-evaluated to reflect current market value conditions. Property owners should be aware however, that when market values once again increase on the property that assessed value can be increased more than the 2% Proposition 13 maximum in cases where the property’s assessed value was lowered to reflect current market values.
The City of Tracy does not set nor determine assessed value of property. All such questions should be directed to the County Assessor in Stockton.
San Joaquin County Assessor’s Office
44 N. San Joaquin Street, Suite 230
Stockton, CA 95202
Phone: (209) 468.2630