California has been extending a generous offer to homeowners since as far back as 1974: a chance to trim $7,000 off the assessed value of their primary residence. This reduction, in turn, eases the burden of annual property tax bills.

Once you apply for the "homeowners exemption," it seamlessly remains attached to your property assessment until you decide to move or sell. This initiative, as highlighted by L.A. Assessor Jeff Prang, is crucial, with nearly a third of California homeowners yet to take advantage of it. Failure to enroll could lead to roughly 435,000 households in Los Angeles County collectively paying an additional $30 million in property taxes.

With property tax rates typically hovering around 1% of the assessed value, this $7,000 exemption translates to a yearly savings of $70 per homeowner. The significance of applying for this exemption is further emphasized by Prang's office, especially for those eyeing the benefits of Proposition 19, enacted in 2020.

Proposition 19, officially known as The Home Protection for Seniors, Severely Disabled, Families, and Victims of Wildfire or Natural Disasters Act, allows homeowners to transfer their primary residence to their children without triggering a reassessment for property tax purposes. However, eligibility for this benefit hinges on the homeowner applying for the exemption within a year of the transfer.

For those who became homeowners in January and have yet to claim the homeowner's exemption, there's a window until February 15th to secure the full $7,000 reduction. Post that date, the reduction will be prorated, as per Prang’s office guidelines. This measure underscores the importance of timely action for homeowners to maximize their tax benefits and secure their financial interests.

01/20/2024