Annual Report 2020 -2021

Who benefits from Proposition 13?
Every property owner benefits from Proposition 13. However, the longer a property is owned, the greater the property tax
benefit. For example, 21 percent of all single family properties purchased before 1989 have not had their assessed value
adjusted beyond the Proposition 13 two percent cap or the CPI (whichever is lower). However, these properties only
comprise six percent of the total assessed value for all single family properties. In contrast, of the 428,543 residential
properties in the County, 177,649 were purchased between 2009 and 2019, accounting for 42 percent of the total number
of residential properties. These property owners are paying a greater share of the total property taxes. The assessed value
of these residential properties was $189.3 billion, 58 percent of the total. The chart below provides a snapshot as of December
31, 2019, based upon market value as of March 1, 1975, or the subsequent date of acquisition, plus the inflation
rate not to exceed two percent per year for properties in each of the four cities. For example, in Sunnyvale, 40 percent of
the properties were acquired in the last ten years and are paying 67 percent of the total property taxes.
Distribution of Assessment Roll by Year
San Jose
Palo Alto
Sunnyvale
Gilroy
3.86%
2.37%
59.91%
25.61%
8.25%
Gross Assessed
Value
41.91%
22.98%
14.28%
10.28%
10.55%
Parcel Percentage
52.92%
23.14%
34.49%
22.28%
15.40%
8.93% 11.51%
5.20%
3.02%
9.82% 16.32%
2.82%
Gross Assessed Parcel Percentage
Value
67.28%
19.68%
7.19%
Gross Assessed
Value
40.32%
22.02%
63.82% 55.57%
13.70%
26.30%
21.60%
9.95%
9.54%
14.01% 2.91% 5.86% 7.05%
1.10%
6.24%
Parcel Percentage Gross Assessed Parcel Percentage
Value
2009-2019 1999-2008 1989-1998 1979-1988 Prior to 1979
Q. What happens when a property
transfers ownership?
A. The Assessor determines if a reappraisal
is required under State law. If required, an
appraisal is made to determine the new
base value of the property. The sales
price, if known, is a strong indicator, but
not the sole factor in setting the Assessment
. The property owner is notified of
the new assessment and has the right to
appeal both the value and the reappraisal
decision. The reappraisal of property
acquired by inheritance from an estate or
living trust occurs as of the date of the death
of the former owner, not on the date of distribution
to the beneficiary. An assessment will be
made in the name of the estate even if the property is
sold rather than distributed to the heirs.
Santa Clara County Annual Report 2020
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