Taxes on property-owning non-residents (sales, condo, assessor)

[Rich2010]

If I buy a home or condo in California but am only there, say, 5 1/2 months of the year, with legal residency in another state and spending the major part of the year there, what local and California taxes am I liable for?

[EscapeCalifornia]

You pay the full property tax because you own the property. The base tax rate is 1% of the purchase price and increases 2% per year. Voters can and often do approve additional taxes which vary with location. If you buy in an area developed after 1982, you pay have Mello Roos bonds to pay off which can double your property tax.

[Rich2010]

Thanks very much for this information on property taxes, EscapeCalifornia. Do you know if, as a property-owning non-resident, I would have to pay any state income tax?

[esmith143]

Part-Year residents must file a return if they have any income taxable by California (which includes income from all sources while a resident and California source income while a nonresident).

[hoffdano]

Originally Posted by EscapeCalifornia

You pay the full property tax because you own the property. The base tax rate is 1% of the purchase price and increases 2% per year. Voters can and often do approve additional taxes which vary with location. If you buy in an area developed after 1982, you pay have Mello Roos bonds to pay off which can double your property tax.

Does it increase 2% per year or is that the maximum increase per year?

If property values (appraised value) drop, your taxes will drop, right?

[bhcompy]

2% is the max, and it can drop

[Ultrarunner]

With voter approval, special assessment districts can be created that will add to the tax burden... the key is voter approval... 2/3 for most everything except school construction, which is less. In my city, tax rate is a little under 1.5% on my home.

California is not like Hawaii where tax rates differ from owner occupant residents...

California has have a Homeowner Exemption which save about $100 a year last time I checked.

The 1% of assessed value is based on the value at time of sale... which is generally is or close to the sales price. I've had to appeal when the Assessor thought my purchase price too low and won...

CA also has special limited provisions for parent/child and in some cases grandparent/grandchild exclusion from reassessment...

[Rich2010]

Lots of very helpful information in the preceding posts -- many thanks to all.

Now I just have to find out how grasping the state taxing authorities are with respect to income to which a *fractional* component could be attributed to California, for example:

* a dividend-paying U.S. or international stock -- say, United Parcel -- which has some business in California;

* a U.S. municipal fund, some of whose holdings are California munis;

* a U.S. small cap stock ETF, some of whose holdings are headquartered in California or have sources of income there.

Anyone know the answer to this one?

[DMenscha]

Taxes are paid by the corporation, not shareholders.

Dividends (if any) are taxable to the shareholder and subject to taxes at the federal level and state level if that state taxes dividend income based on the recipients home state.

Municipal bond funds are not taxable income.

I think CA is a unitary tax state, which means that all nationwide corporate earnings are taxed.