Tax Development Jan 23, 2014
Every December, the California State Board of Equalization announces the inflation factor for the coming year’s property assessment roll. The factor is determined using the percentage change (rounded to the nearest one-thousandth of one percent) in the California Consumer Price Index (CCPI), from October of the prior fiscal year to October of the current fiscal year, but cannot exceed 2%. The 2013 CCPI percentage change was 1.02, resulting in an assessed value increase of 2%.
For the 2014 assessment roll year (July 1, 2014–June 30, 2015), the inflation factor in California for 2014 is 1.00454, rather than the typical 1.02. In 2014, California will not see the typical 2% increase in assessed values, but instead the increase will only be .454%. This is only the seventh time since Proposition 13 was passed in 1978 that the inflation factor has been less than 2%.
For more information on California property tax questions or issues and what these changes may mean to your business, please contact Tom Loban.
TECHNICAL INFORMATION CONTACT:
Tom Loban
Principal
Ryan
760.795.3474
tom.loban@ryan.com