How to Avoid Unintended Property Tax Reassessments

Properties with 35-year leases could be subject to unexpected property tax reassessment costs, according to Gary Glick, a partner at Cox, Castle & Nicholson. While these leases can trigger reassessments, there are ways to avoid it. We sat down with Glick for an exclusive interview to talk about real property tax, why reassessments are triggered and how they can be avoided.

GlobeSt.com: Under California law, when is real property taxed? What percentage of its assessed value is taxed?

Gary Glick: With some exceptions for items such as voter approved debt, real property in California is taxed annually at a maximum rate of 1% of its assessed value.  Unless and until a change of ownership occurs, annual increases on a real property’s assessed value is capped at 2%.