Beautiful Fresno County is known for its wonderful weather and numerous tourist attractions. Median home values are also quite low, particularly when compared to other areas in the state. Last year, homes sold for about $405,000, which is only a bit above the national average and well below the state average.
However, potential property owners must be aware of the property taxes that align with home ownership, including how they are calculated and paid.
Explore the most essential elements of Fresno property tax so that you’re well-prepared when your property tax bill arrives in the mail.
What Are Property Taxes?
Property taxes are a crucial way for a county to generate revenue, which helps pay for vital social services like public safety and infrastructure such as new municipal buildings.
California law requires every county to charge tax on all properties, and there are limits to how high these taxes can be in order to stabilize the market.
How Much Are Property Taxes in Fresno County?
California legislation prevents property tax from getting out of hand. Proposition 19 caps property taxes at 1% of the home’s assessed value. However, cities and counties are allowed to impose additional property tax, as Fresno County has done.
The effective property tax rate in Fresno County is 1.37% of the property’s assessed value. In most cases, this will be the home’s purchase price, which is often significantly lower than the market value.
How is Property Tax Calculated in Fresno, CA?
Property taxes are calculated based on your home’s assessed value and the tax rate set by the state. A new assessed value is calculated each time a property is sold, remodeled, or its market value falls below the old assessed value. A new construction on your property will also trigger new assessments.
This model protects homeowners against inflation, as there is often a significant difference between current values and assessed values.
To calculate your property taxes, identify your home’s assessed value, which you can review at the County of Fresno’s website, then multiply it by the effective property tax rate.
For example, if your property is assessed as being worth $300,000, your property tax bill would be approximately $4,110.
Mortgages, whether you refinance or pay off your loan, do not change assessments; opening a new loan will not create an assessment.
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Appealing Your Assessed Value
If your assessment values change and you believe they’re wrong, you can submit the form BOE-305-AH, Assessment Appeal Application, with the Clerk of the Board of Supervisors. The assessor’s office does not handle appeals.
As the Fresno County fiscal year begins in June, you have between July 2 and November 30 to file an appeal. You can only appeal the most recent tax year.
If you have a new construction or just bought the property, you have up to 60 days from the date of the assessment to appeal.
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Outcomes of a Successful Appeal
A successful appeal can be a godsend, as it will mean that your property’s assessed value drops. This will reduce your property taxes, helping you save more of your hard-earned money.
Supplemental Taxes
A supplemental tax bill is the bill you receive when a property is sold or remodeled. This is because the assessor’s office will reassess the property at current market values, then charge you a tax rate equal to the difference between the old and new values.
This is calculated using the number of months as a resident, so if you bought your home in the fall, you will not need to pay the bill for the time you didn’t own it.
Supplemental taxes are not the same as your normal tax bill, which will still be mailed to you in November. The deadline will vary, but it is typically within 60 days of the reassessment.
How Are Supplemental Taxes Calculated?
You can calculate your supplemental tax bill by subtracting the old assessed value from the new assessed value, then applying the relevant effective property tax rates to that difference.
For example, if your home is now worth $300,000 and its old value was $250,000, you will have a supplemental tax of $50,000.
You will then multiply it by the current property tax rate to receive an approximate supplemental bill of $685.
Primary Residence Tax Breaks
Fresno County property taxes are a significant cost to homeowners, but fortunately, there are programs available to help alleviate the burden.
California voters passed the Homeowners’ Exemption into law, making it possible for any property owner using their home as their primary residence to receive a tax break.
The form for this is automatically mailed to new homeowners as soon as a Preliminary Change of Ownership Report (PCOR) has been filed with the county office.
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Application Process & Benefits
Applying for the Homeowners’ Exemption is easy: all you must do is fill out form BOE-266 REV.13 (5-20) and mail it to the appropriate office to be processed.
This entitles you to a $7,000 reduction in your property’s value for tax purchases, which can significantly reduce your bill on tax season.
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Other Potential Exemptions
There are several other exemptions that can help you reduce your Fresno County property tax, which include:
Charitable Properties
This is for a property used exclusively for religious, charitable, medical, or scientific purposes.
Disabled Veterans
Veterans who have been identified as totally disabled by the Department of Veterans Affairs can apply for a property tax reduction, which is more generous than the typical exemption for a primary residence.
Homestead
This option protects $300,000 to $600,000 of a home’s equity from creditors. The homestead is automatic, but property owners can file for additional protection.
Solar/Wind
If you build a new home and install wind or solar, the portion of the value provided by green energy construction can be excluded from the value for tax purposes.
Late Payment Penalties
You must provide the first installment of your taxes by December 10. Should you miss this date, your taxes are delinquent, and you will be charged a 10% penalty.
The second installment is due by April 10. Any payments submitted after this date will incur a 10% penalty, as well as a $10 fee.
Should you fail to pay all your taxes by the end of the fiscal year, June 30, your account is in default, and there will be an added fee of 1.5% applied each month until they are paid. You will also need to pay a redemption fee of $15.
Those who have not paid their taxes for five years may have their properties seized by Fresno County and sold at public auction, unless they pay all of their delinquent taxes the day before the home goes on the auction table.
Property Tax Increase Caps
Proposition 13, passed in 1978, sets a limit of 2% in property tax increases per year. This helps prevent excessive taxation while still ensuring counties get enough revenue to fulfill their needs.
Property Tax Resources for Fresno Homeowners
If you need more information, the below pages cover taxes in further detail, including all the laws around property taxes and how to pay your bill.
Information and Payment Options
The Fresno County tax collector provides an overview of their office, discusses their services, and allows you to make payments online through a secure portal. You can also find information about the California Mortgage Relief Program, which can assist those who have fallen behind on their taxes to ensure that they do not lose their homes.
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Property Value and Appeal
Here, you can find the form for Fresno County appeals, allowing you to dispute a new assessment of your property value. Their page also allows you to look up the value of your property if you want to plan ahead on how much you may owe.
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Property Tax Laws and Regulations
This comprehensive guide to California property tax laws explains what data is used to ascertain a home’s value, what constitutes a change in ownership, and how tax is calculated on different types of properties such as timberland.
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Buying a House in Fresno?
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