The LA county property tax system:

The city and county agencies sends copies of all building permits Assessor. The Registrar-recorder county clerk sends copies of all deeds and recorded documents to the Assessor.The Assessor then assesses all real estate and personal property (aircraft, motorboats, manufactured homes, businesses) documents received from around the country. The Assessor then sends these to the Auditor-controller.The Auditor-controller then applies the correct tax-rate to each assessment to determine the real amount property taxes owed. The Auditor-controller sends the property tax bills to the county treasurer and tax collector, who then mails out the property tax bills, receives the taxes, and then deposits them into the County Treasury.The Auditor-controller then allocates this money to local taxing agencies, such as cities, schools, special districts (libraries, parks) and the county.

Property-tax-systemAnnual property tax bills are intended to be received by Nov. 1. The first installment is due Dec. 10, the second by April 10. Bills are delinquent if not received by then. If you do not receive your bill by Nov. 1, call 1-888-807-2111 and request a substitute bill.
If you purchased a home and are unsure of any outstanding property taxes, call 1-888-807-2111. Even if no bill was received you are still responsible to pay.
Supplemental tax bills are generally issued at home re-evaluation. A home is re-evaluated if sold at a higher or lower price. If sold at a higher price, the buyer may have to pay based on the difference between the new value (cost) of the home and the previous value. The number of months remaining in the fiscal year will also affect this amount. If re-evaluated at a lower price, the buyer may receive a refund. The bill is mailed approximately 6 months after purchase. View your estimate at http://assessor.lacounty.gov/extranet/guides/SuppTaxCalc.aspx
Transfers between grandparents/parents to children may be exempt from reassessment. Disabled and senior (55+) persons may qualify to transfer their original property’s value to the new property. If a purchased home is your primary residence, you may qualify for a Homeowners’ Exemption of about $70. You will receive an application 4 months after your deed is recorded by the county clerk.

Business Property Statement (571-L Forms)
Are due by April 1. A 10% penalty is applied if received after then. Required filing if value of business personal property exceeds $100,000 or if requested by Assessor. Businesses which do not value at $100,000 are exempt, and valued by the amount on the the initial business property statement. Property used in conduct of business may be subject to taxation. Personal property is all the property owned or leased by a business, except for inventory and real property. This includes furniture, computers, machinery, etc. Leased equipment must be reported to the Assessor by Jan. 1 by both the lesser and lessee. All Business Property Statements are confidential.

Learn how to read an Unsecured Tax Bill here: http://www.lacountypropertytax.com/portal/bills/unsbill.aspx

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Tax Deductions For New Homeowners in L.A. County

Tax season seems to come along more quickly every year, however, for some it can’t come quickly enough. If you are considering becoming a new home owner in L.A. county it is recommended to become familiar with the many ins and outs of L.A. county property taxes. The two biggest determining factors in how much one pays in property taxes are the state where they are living and an individual’s economic status. Although there are several deductions available for new and old homeowner’s there are some very large and important tax deductions available to first time homeowners in L.A. County.

tax deductProperty taxes are collected by municipalities in order to subsidize and help share the cost of some of the more essential services. These services include police, fire rescue, schools and some parks. Although the delegation of funds can vary from county to county. Property taxes are usually assessed by a county tax collector based on the result of appraisals of the property value and are often paid out of the owner’s escrow amount on their mortgage. Tax rates are applied by the auditor who, after receiving all funds from tax collector, allocates them to over 900 different taxing agencies. These assessments can be disputed in an appeal with the L.A. County tax authority and the homeowner may be eligible for refunds from previous years and smaller payments in future years.

Unsecured Taxes are classified by their not being considered real property or land. Types of property that are assessed as unsecured can be business personal property, aircraft, boats and other such assets. While getting all of your taxes in order may seem like a lengthy chore, there are many ways in which it can pay off in the next year. Helping to recuperate some of the money spent is one of the benefits.

As a new homeowner paying property taxes you are eligible to deduct this amount in full. If you’ve invested in home improvements since purchasing your home there are deductions available. If you had to take out a loan to cover construction costs you can claim the interest paid as a solid deduction on your taxes. Spending money on a new home can actually go a long way towards saving you money in the long run. There is no better time to invest in home improvements than when you have recently purchased a new home. When a property that you have owned for some time is improved upon there are often kickbacks pertaining to “old homes”. Although some types of larger scale improvements will, in turn, increase the value of your home and increase your property taxes. These improvements may include something like a pool or a skylight.

There are many factors to consider when becoming a new homeowner in L.A. County. The process of understanding your property tax doesn’t need to be an issue that leaves you in the dark. Taking time to understand how property taxes work will help you save a lot of time and money.

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Information about the property tax process

It takes three separate Los Angeles County offices, Assessor, Auditor-Controller and Treasurer and Tax Collector to produce and account for your property tax bill and payment.

HomeAssessor

The Los Angeles County Assessor establishes the assessed value of your property by appraising the value of that property under applicable State laws. The assessed value is then placed on a list with all other properties in Los Angeles County and this list is called the “Assessment Roll.” The Assessor also approves and applies all exemptions, which are added to the Assessment Roll. The Assessment Roll is then presented to the Los Angeles County Auditor-Controller for further processing.

Auditor-Controller

The Los Angeles County Auditor-Controller adds direct assessments to the Assessment Roll then applies the tax rates, which consists of general (1%) levy and debt service (voter & bonded) tax rates to the value to create an Extended Assessment Roll. The Extended Roll is then sent to the Los Angeles County Treasurer and Tax Collector for individual tax bill distribution and payment collection.

Treasurer and Tax Collector

The Los Angeles County Treasurer and Tax Collector receives the Extended Roll, prints and mails the property tax bills to the name and address on the Extended Roll. The Treasurer and Tax Collector collects secured and unsecured taxes. Secured taxes are taxes on real property, such as vacant land, structures on land, i.e. business/office building, home, apartments, etc. Unsecured taxes are taxes on assessments such as office furniture, equipment, airplanes and boats, as well as property taxes that are not liens against the real property.

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What you need to know about taxes in LA?

Welcome everyone that is going or in the works of buying a new home. Understanding that buying a new home can be a very happy and or stressful time in everyone life. But not just buying a home can be stressful it can be taxes too. Remember everyone pays home taxes which can be ever more then your home is worth. But every LA has a program that can help you with your home taxes. here is some examples how taxes can work .
taxesThe County Assessor can and may assess the extra Market Value due to there rules and add this to the old value of your existing house.
So let’s say you add on 500 square feet.. and let’s say market values in your area are $100 per square feet.. the Room Addition would add $50,000 of “Value” to your house. Which isn’t really that bad.. this translates to about an extra $500 worth of property taxes a year. Property taxes are assessed at 1% of Assessed Value
say you buy a fixer upper and its about $300,000 and their taxes are $5,000 is because the $5,000 was calculated on the last sold price plus the yearly increase. When you by a home today, the taxes which you will pay as part of escrow will be calculated on the prior sales price, once you close your home it will be reassessed at the new lower rate which will result in a lower tax bill. The good news is that after a few months in your home, you should receive a note from the assessor stating your new tax rate and also you should have a small tax credit.

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The Taxes in Los Angeles

If you are moving to sunny Los Angeles County, you’ll find many areas of personal business that must be conducted to settle in successfully. One of the least appealing but most necessary of these is identifying and paying the various taxes that will be assessed, among them, property and business taxes. How do these work and what property is taxed?

TaxThe Los Angeles Tax Assessors website states “all real property is taxed.” Homes, rental properties, etc., fall into this category. Once you purchase a new home or rental property, you’ll receive an annual tax assessment, but you could also be responsible for supplemental tax payments on this property. Of course, this assessment will be prorated according to purchase date. Depending on the cost of your home, taxes can be expensive, but there’s a basic relief program available for first time homeowners. You may qualify to get your property taxes reduced by up to $70 each year. Purchasing a home inside incorporated LA County could help you avoid another tax, the Utility User Tax (UUT), a 4.5% annual taxes on electricity, natural gas and communications.

Taxes on your home are not the only ones for which you will be responsible in LA County. Personal property owned by businesses is also taxed. If your business has personal property assets exceeding $100,000, you must file annually a Business Property Statement for assessment purposes. What types of personal property fall in this category? The Los Angeles Tax Assessors website lists items like office equipment, technological equipment and machinery, even furniture and fixtures. Business vehicles and aircraft also fall in this category.

Other business taxes might also apply, depending on the type of business. You could be responsible for paying Disposal Facilities Business License Taxes for waste disposal facilities; this tax could be a significant consideration for establishing this type of business in LA County. The taxes are 10% annually. If you’re in the hospitality industry, you could pay 12% annually for The Transient Occupancy Tax (TOT), otherwise known as “The Bed Tax.” You could reduce this tax burden if your hotel/motel is located inside incorporated LA County.

Plenty of new residents arrive from other states that have Ad Valorum taxes on vehicles; LA County is no exception. Your tax bill will include annual fees of 1% of the value of your vehicle(s) in addition to payment for your car tags, etc. Vehicles taxed include cars, trucks, boats, motorcycles, and all sorts or recreational vehicles. The LA County government website can provide you with calculators to estimate your tax burden and help you plan ahead.

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