California's $30 Billion in Tax Savings

An analysis of local property tax assessments in California reveals that taxpayers probably saved approximately $30 billion due to several tax caps and exemptions

The study, done by CALmatters and Zillow, evaluated the difference between the property tax burden on Californians today and what they would have to pay based on current market values. The findings suggest that the billions of dollars saved are in part due to the state's popular Proposition 13 reducing property tax rates, exemptions for the disabled, seniors, and veterans. Taxpayers in Los Angeles County saved the most of all counties in the state, $7.4 billion.

Many states have limits on property taxes that prevent a home’s tax-assessed value from moving in line with overall market trends. The policies enjoy widespread popularity: 64 percent of Americans recently surveyed by Zillow said they agreed there should be limits on how much property taxes can change after a homeowner moves in, a sentiment that transcends party lines. But it is California that has long been at the forefront of debate around limits to property taxes – and their implications for the housing market and overall health of the state economy.

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