Thanks to Proposition 13, California property owners will barely see a rise in property taxes in 2014. Under the measure, county tax officials can only increase a property’s assessed value each year by 2 percent or the inflation rate–whichever is lower. Yesterday, the 2014 California Consumer Price Index was announced: 1.00454, an increase of .454 percent from last year. This is only the eighth time in the last 35 years that the inflation rate has been lower than 2 percent.
According to the San Jose Mercury News, reflecting a rising cost of living in the Bay Area, inflation in San Francisco, Oakland and San Jose climbed 1.6 percent. However, it dropped 0.1 percent in the Los Angeles area, due in large part to plummeting gas prices. Because Prop 13 set property tax rules for the whole state, Northern California’s bump is in effect averaged with Southern California’s decline. This left California with lower inflation than the national average calculated between October 2012 and October 2013, which was just shy of 1 percent.
For the full story from San Jose Mercury News, click here.