Mills Act OF
Tax Assessment Worksheet CALIFORNI
Annual Property Income
An estimate of monthly rental income is required, even if the property is owner occupied. For single-family residences, Monthly Rental Income realtor may be able to assist you in determining the potential rental income from your property. $4500
Muitiple monthly rental income by 12. $54,000
Annual Rental Income
Annual Operating Expenses
Insurance California Casualty $2338
Utilities Electricity, Water, Gas. $4481
Maintenance General Repairs, Cleaning, Painting, Landscaping $5000 Total Expenses Add total expenses. Total expenses typically equal $11819 approximately 25% of annual rental income.
Annual Net Income
Net Total Annual rental income minus total expenses. $42,181 Capitalization Rate
Interest Rate Component Fixed interest rate established by the Board of Equalization for 6.25% most recent year. [4.0%]
Historic Property Tax Risk 4.0% for single-family residences 4%
Component 2.0% for all other properties
Property Tax Component Fixed Component [1.0%]
1%
Amortization Component Based on life of improvements. (Typically 0.67%j 0.67% Capitalization Rate Add individual components above. 11.92% Assessed Value
Historic Property Value Net total divided by capitalization rate. $353,867 Current Assessed Value From current property tax bill:
$895,287
Estimated Tax Reduction
Current Tax General levy tax portion only. Does not include sewer assessments, bond issues, or other voter indebtedness. $8,952 Estimated Tax under Mills Act 1.0% of Historical Property Value. Provided as an estimate of $3,538 potential tax savings.