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California Homeowner's Tax Exemption: Everything You Need to Know

Homeownership in California can be a dream come true for many. However, it also comes with financial responsibilities, such as paying property taxes. Fortunately, the state of California offers a Tax Exemption for Homeowners which can significantly reduce the tax burden of eligible homeowners. In this article, we will explore in detail the Homeowner Tax Exemption in California, how to qualify, how to file, and how it can benefit homeowners.

What is the Homeowner Tax Exemption?

The California Homeowner Tax Exemption is a program designed to reduce the tax burden of homeowners who meet certain requirements. In simple terms, it lowers the taxable value of your home, which in turn lowers the amount of property taxes you must pay. This exemption applies to the taxable value of your home, meaning it does not affect the market value of the property, but rather the amount used to calculate your property taxes.

Eligibility Requirements

To qualify for the Homeowner Tax Exemption in California, you must meet several requirements. These requirements include:

1. Main Residence

The property must be your primary residence, meaning you must live on the property as your primary home. You cannot claim the exemption if the property is a rental residence or a second home. You must have occupied the property as your primary residence on the lien date, which is the January 1.

2. Homeowner

You must be the owner of the home for which you are requesting the exemption. If you are a renter, you are not eligible for this exemption. However, if you own a mobile home or houseboat that is subject to property taxes, you may be eligible.

3. Presentation Date

To receive the full exemption in a given tax year, you must file your claim before February 15 of that year. If you file after that date, you may still be eligible, but the exemption will not be effective for that tax year and you will have to wait until the following year.

4. A Claim for Housing

You can only claim the Homeowner's Tax Exemption for a particular home. If you own multiple homes, you must choose one as your primary residence and file a claim for that property.

5. US Citizen or Legal Resident

You must be a citizen of the United States or have legal resident status in the country to be eligible for this exemption.

For purposes of property tax exemption law, limited liability companies, LLCs, like corporations, are separate entities. There is no authority to disregard the separate entity status of a limited liability company for purposes of ownership and determining eligibility for the owner's tax exemption. Therefore, an exemption application for a property owned by a limited liability company should not be permitted. C 11/27/2001.

How to Submit a Request?

To claim the Homeowner Tax Exemption in California, you must apply to the county assessor's office where your property is located. Below are the steps you must follow:

1. Obtain the Claim Form

The form necessary to request the Homeowner Tax Exemption is the BOE-266, “Tax Exemption Claim for Homeowners“. You can obtain this form online through the county assessor's website or in person by visiting the assessor's office.

2. Complete the Form

Fill out the BOE-266 form with the required information. You will need to provide details about the property, your ownership status, and your primary residence. Please be sure to complete the form accurately and according to the instructions provided.

3. Submit the Form

Once you have completed the form, submit it to the county assessor's office where the property is located. Be sure to do this before February 15 if you want the exemption to be effective for the current tax year.

4. Keep Information Updated

It is important to keep your Homeowner Tax Exemption information up to date. If at any time you no longer meet the eligibility requirements, you must notify the county assessor immediately. The deadline to notify your ineligibility is December 10.

They may have to verify that all the data matches through a Verification Letter.

Tax Exemption Benefits for Homeowners

The Homeowner Tax Exemption offers several significant benefits to California homeowners:

1. Tax Reduction

The reduction in the taxable value of your home translates into a decrease in the property taxes you must pay. This can save you a substantial amount of money each year.

2. Financial Relief

Property taxes can represent a significant financial burden for homeowners. The Homeowner Tax Exemption provides valuable financial relief by reducing this burden.

3. Fiscal Stability

By knowing in advance the amount of property taxes you must pay, you can plan your budget more effectively and enjoy greater fiscal stability.

4. Makes Home Ownership Easier

For many homeowners, especially those on fixed or limited incomes, the Homeowner Tax Exemption makes it more affordable to own and maintain a home.

How It Works and How to Apply

The Homeowner Exemption allows homeowners to reduce their tax liability on a home they occupy as their primary place of residence beginning at 12:01 a.m. on the tax date, which in this case is January 1. The maximum amount of this exemption is $7,000 on the total value of the property. Once granted, this exemption remains in effect until one of the following occurs:

  1. Change of ownership of the property.
  2. The owner stops occupying the home as his or her main place of residence on the date of lien.
  3. The property becomes ineligible in some other way.

The Timeline

Here I leave you the official page to see the deadlines for presentation.

The Disabled Veterans Exemption

The Disabled Veterans Exemption allows an exemption of $100,000 (Basic Exemption), adjusted for the applicable assessment year, for property that constitutes the primary place of residence of a disabled veteran or the surviving unmarried spouse of a veteran who, due to to an injury or illness incurred in military service, is blind in both eyes, has lost two or more limbs, or is totally disabled. The Basic Exemption of $100,000 increases to $150,000 of the assessed value (Low Income Exemption), adjusted for the applicable assessment year, if the household income for the previous year did not exceed $40,000, adjusted for the assessment year. corresponding evaluation.

Once granted, the Basic Exemption remains in effect until terminated without the need to submit subsequent applications. However, an annual filing is required for any year in which the Low Income Exemption is claimed.

Importantly, no other property tax exemption can be granted to a residence that has been a recipient of the Disabled Veterans Exemption. However, if two or more qualified veterans own property on which they reside, each is entitled to the Disabled Veterans Exemption to the extent of their interest.

Conclusion

The California Homeowner's Tax Exemption is a valuable benefit that can help reduce the tax burden of qualified homeowners. If you are eligible, do not hesitate to apply and take advantage of this important tax benefit. Keep your information up to date and enjoy the tax savings this exemption can provide you. Your home is your sanctuary, and the Homeowner Tax Exemption can help you protect it financially!

Legal and Tax Disclaimer

Please be advised that the content presented in this blog is for informational purposes only and should not be construed as legal or tax advice. The articles and information provided here are written from the perspective of a real estate agent affiliated with Keller Williams, and do not represent legal or tax counsel.

As the author, I am a licensed real estate professional under Keller Williams, holding Brokerage DRE License Number: #02197031. However, it is important to note that my expertise is in the field of real estate, and not in legal or tax matters. The insights and opinions shared on this blog are based on my experiences and knowledge in the real estate industry and should be treated as general guidance rather than definitive legal or tax advice.

For specific legal or tax concerns relating to any real estate transactions or investments, readers are strongly encouraged to consult with a qualified attorney or tax advisor who can provide tailored advice based on your individual circumstances and the latest legal and regulatory requirements.

The information on this blog is provided "as is" without warranty of any kind, and I, along with Keller Williams and its affiliates, disclaim all liability for any loss, damage, or misunderstanding arising from reliance on the information contained herein.

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