Real Property Tax Breaks Under the Williamson Act
By: Michael Repka, Esq. DeLeon CEO/General Counsel
For most California homeowners, their annual property tax is based on one percent of the amount they paid for the property, and increased by up to two percent per year. Additionally, they pay for debt service on bonds issued to benefit the property, provided that this amount does not exceed 0.25 percent of the value of the property.
There is, however, an often overlooked way for people to reduce the amount of property tax. Much like the Mills Act encourages people to preserve historic structures (see “Real Property Tax Breaks Under the Mills Act,” The DeLeon Insight, November 2015), the Williamson Act encourages landowners to maintain land for agricultural or related open-space use. In return for the landowner’s commitment to maintain the property as agricultural land or open space for a 10-year period, the landowner receives substantially reduced property tax assessments that are based upon generated income rather than potential market value of the property.
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