my name is carmen chiu, san francisco's elected assessor.n i meet with seniors in the community, they're thinking about the future. some want to down size or move to a new neighborhood that's closer to family, but they also worry that making such a change will increase their property taxes. that's why i want to share with you a property tax saving program called proposition 60. so how does this work? prop 60 was passed in 1986 to allow seniors who are 55 years and older to keep their prop 13 value, even when they move into a new home. under prop 13 law, property growth is limited to 2% growth a year. but when ownership changes the law requires that we reassess the value to new market value. compared to your existing home, which was benefited from the -- which has benefited from the prop 13 growth limit on taxable value, the new limit on the replacement home would likely be higher. that's where prop 60 comes in. prop 60 recognizes that seniors on fixed income may not be able to afford higher taxes so it allows them to carryover their existing

my name is carmen chiu, san francisco's elected assessor. buying your first home is a big deal.y of us, it's the single largest asset that we'll own. that's why it's really important to plan ahead for property taxes so that there are no surprises. a typical question new homeowners ask is what is a supplemental tax. so understand supplemental tax, we need to start with proposition 13. under california's prop 13 law, the value we use to calculate your property tax is limited to a 2% growth peryear, but when ownership changes, prop 13 requires that we set a properties assessed value to market value. the difference in value between the previous owner's value and the new value is the supplemental assessment. how does the supplemental assessment translate to the tax you need to pay? supplemental tax is calculated by applying the tax rate to the value and then prorating it for the amount of time that you owned it in that tax year. in generale, the tax rate is roughly 1%. let's walk-through an example together. here dan is the original owner of a home with a prop 13 protected value of $

my name is carmen chiu, san francisco's elected assessor. in our seven mile by seven mile city, we have over 210,000 properties and close to 90% of their are residential like the homes you and i live in, so you might ask, how can we possibly value all these properties? well, to better understand our work, we need to explain the state's proposition 13 law. in 1978, california voters passed proposition 13. under prop 13, we value your property at market value when you first buy it. every year after, that value goes up by the c.p.i. or the california consumer price index. but if the c.p.i. is more than 2%, prop 13 caps the increase at 2%. we'll walk-through the maximum increases prop 13 would allow. let's take a home with initial value of $400,000. in the second year your assessed value grows by a maximum of 2%, growing from $400,000 to $408,000. in year three, that $408,000 is increased by 2% to roughly $416,000. every year, the value grows by the maximum rate of 2%, and that is called your prop 13 value. keep in mind as time goes by your prop

my name is carmen chiu, san francisco's aelectricitied assessor.are with you a property tax savings programs for families called proposition 58. prop 58 was passed in 1986 and it was helped parents pass on their lower property tax base to their children. so how does this work? under california's prop 13 law, the value we use to calculate your property tax is limited to 2% growth peryear. but when ownership changes, prop 13 requires that we reassess properties to market value. if parents want to pass on their home or other property to their children, it would be considered a change in ownership. assuming the market value of your property has gone up, your children, the new owners, would pay taxes starting at that new higher level. that's where prop 58 comes in. prop 58 recognizes the transfer between parents and children so that instead of taxing your children at that new higher level, they get to keep your lower prop 13 value. remember, prop 58 only applies to transfers between parents and children. here's how the law twines an eligible child. a bi