Understanding Property Taxes in the Central Valley

Property taxes are one of the largest ongoing costs of homeownership, yet they are also one of the least understood. In my years helping buyers across Bakersfield, Visalia, and the broader Central Valley, I have found that most people do not fully grasp how their property tax bill is calculated, when reassessment occurs, or what exemptions they may be missing. This guide breaks it all down.

California Proposition 13: The Foundation

Passed in 1978, Proposition 13 is the most important piece of legislation affecting California property taxes. Here is what it does:

• Base tax rate: Property taxes are capped at 1 percent of the assessed value at the time of purchase (or new construction). This is the base rate — additional voter-approved bonds and assessments are added on top.
• Annual increase cap: The assessed value can increase by no more than 2 percent per year, regardless of how much the market value increases. This means long-term homeowners often have assessed values far below current market value.
• Reassessment trigger: The assessed value resets to current market value only upon a change of ownership or new construction. This is why a house purchased in 1990 for $120,000 might still be assessed around $200,000 despite a market value of $400,000.

For buyers, this means your property tax bill will be based on what you actually pay for the home, not what the previous owner was paying. I always prepare buyers for this reality, especially when purchasing from long-term owners whose low tax bills do not reflect what the new owner will pay.

Effective Tax Rates in Kern and Tulare County

While the base rate is 1 percent, voter-approved bonds for schools, infrastructure, and public safety push the effective rate higher. Here is what you can expect:

• Kern County (Bakersfield metro): Effective rates of 1.05 to 1.25 percent in most areas. Some newer developments with Community Facilities Districts (Mello-Roos) run as high as 1.4 to 1.6 percent.
• Tulare County (Visalia metro): Effective rates of 1.05 to 1.20 percent in most areas. Visalia and Tulare have slightly fewer bond overlaps than Bakersfield's newer master-planned communities.

On a $400,000 home in a typical Bakersfield neighborhood, expect an annual property tax bill of approximately $4,400 to $5,200. On a $350,000 home in Visalia, expect roughly $3,850 to $4,400.

Mello-Roos: The Hidden Cost in Newer Communities

Mello-Roos is a special tax levied on properties within Community Facilities Districts to fund infrastructure, schools, parks, and other public improvements. It is most commonly found in newer master-planned communities where the developer created the district to finance the development's infrastructure.

In Bakersfield, many homes in areas like Seven Oaks, Riverlakes Ranch, and newer Rosedale developments carry Mello-Roos assessments of $1,500 to $4,000 per year on top of regular property taxes. This is a significant cost that buyers must factor into their monthly payment calculations.

Key Mello-Roos Facts

• Mello-Roos is not deductible as a property tax on your federal income tax return (it is considered a special assessment, not an ad valorem tax).
• Mello-Roos bonds typically have a 20 to 40 year term. Once the bonds are paid off, the special tax goes away.
• The amount can increase annually, but only up to the maximum stated in the formation documents — it cannot exceed the cap.
• When comparing homes, I always calculate the total tax burden (base taxes plus Mello-Roos) rather than looking at the base tax alone. A $450,000 home without Mello-Roos may cost the same monthly as a $420,000 home with a $3,000 annual Mello-Roos assessment.

Supplemental Property Taxes

This is the bill that surprises almost every new California homeowner. When you purchase a property, the county assessor reassesses it to the purchase price. The difference between the old assessed value and the new assessed value is prorated for the remainder of the fiscal year, and you receive a supplemental tax bill — sometimes two bills if the purchase straddles fiscal years (July 1 to June 30).

For example, if you buy a home in October for $400,000 that was previously assessed at $250,000, the supplemental tax covers the difference of $150,000, prorated for the remaining 8 months of the fiscal year. At a 1.1 percent effective rate, that is approximately $1,100 in supplemental taxes.

These bills arrive 6 to 18 months after purchase and are not included in your mortgage escrow account. You must pay them separately, so budget accordingly.

Property Tax Exemptions

Homeowner's Exemption

Every owner-occupied home in California qualifies for a $7,000 reduction in assessed value, which saves approximately $70 to $80 per year. You must file a one-time application with the county assessor's office. It is a small savings, but there is no reason not to claim it.

Veteran's Exemption

California veterans may qualify for an additional exemption. The basic veteran's exemption provides a $4,000 reduction in assessed value. Disabled veterans may qualify for exemptions of $100,000 to $150,000 or even full exemption depending on disability rating and income level.

Proposition 19 — Parent-to-Child Transfers

Since February 2021, Prop 19 allows parents to transfer their primary residence to children while maintaining the parent's low assessed value, but only if the child uses it as their primary residence and only up to $1 million above the existing assessed value. This replaced the broader Prop 58 provisions and has significant implications for estate planning in Kern and Tulare County.

Disaster Relief Reassessment

If your property is damaged or destroyed by a disaster (fire, flood, earthquake), you can apply for a temporary reduction in assessed value to reflect the property's diminished condition. Once repaired, the value is restored to the pre-disaster assessment — you do not get reassessed to current market value.

How to Read Your Property Tax Bill

Both Kern County and Tulare County mail annual property tax bills in October. Payments are due in two installments:

1. First installment: Due November 1, delinquent after December 10.
2. Second installment: Due February 1, delinquent after April 10.

If your mortgage includes an escrow account, your lender typically pays these on your behalf. However, you should still review the bill annually to confirm the assessed value is correct and all exemptions are applied.

Appealing Your Property Tax Assessment

If you believe your property has been over-assessed, you can file an assessment appeal with the county. This is most common when property values decline (as happened briefly during the 2020 downturn) or when the assessor's records contain errors about your property's size, age, or features.

The appeal must be filed between July 2 and November 30 in most California counties. I have helped several clients successfully reduce their assessments by documenting comparable sales that support a lower value.

Understanding property taxes is essential whether you are buying your first home or evaluating an investment property. I always include a detailed tax analysis in my buyer consultations so you know exactly what to expect before you make an offer.