EXEMPTIONS FROM PROPERTY TAXES:
WHAT THEY ARE AND WHO IS ELIGIBLE

    Even though the California Constitution states that "all property is taxable," over the years a number of exemptions from property tax have been approved by the legislature or the voters. Reasons for these exemptions may have been to recognize private activities that replace demands on public services [welfare/private colleges]; church and religious activities that should be separated from state intrusion [religious/church]; promotion of homeownership [homeowner]; recognition of service to state and country [veteran] and difficulty of administering assessment of stocks, bonds, bank accounts and inventory [intangible/inventory]. In addition, counties are allowed to adopt low-value ordinances which allow assessments below a certain level (in Napa County $2,000) to be exempted because the cost of billing and collecting the tax is less than the revenue.

    Probably the best known exemption is the homeowner's exemption which reduces the value of an owner-occupied residence by $7,000 in value or approximately $71.00 in annual property taxes. In Napa County the homeowner's exemption accounts for approximately $153 million of assessed value reduction to our almost $9.5 billion assessment roll. The $1.53 million in revenue which this reduction represents is reimbursed to local agencies by the State of California from general fund revenues.

    Welfare and religious exemptions cover all churches, entities such as Queen of the Valley Hospital, Pacific Union College, the Salvation Army, Napa County Land Trust, some pre-schools and many others. The combined reduction in the assessment roll from all exemptions other than homeowners is $343 million. This $3.43 revenue reduction is not reimbursed by the State of California.

    While there is a general veteran's exemption of $4,000 in value, it is almost never claimed since the claimant cannot have more than $5,000 ($10,000 if married) in total assets. However, we do have a number of veterans or their widow/ers who qualify for the disabled veteran exemption which is either $100,000 or $150,000 value reduction depending on the income (not assets) of the claimant. To qualify for the disabled exemption, the veteran must be 100% disabled from service related injuries or illness. If the veteran died from those injuries or illness, the unmarried widow/er is eligible to claim the exemption during her/his lifetime.

    All exemptions except the low-value exemption require a claim for exemption. For homeowners and disabled veterans at the $100,000 level, only an initial claim is required and the exemption remains in effect for as long as they remain eligible. Most other exemptions require an annual filing to insure that eligibility is current. If you have questions about an exemption, please contact our office.

Should you have any questions please contact Napa County Assessor-Recorder John Tuteur
at 707.253.4459 or by e-mail jtuteur@co.napa.ca.us

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Main Category:   Napa Valley,   California