Selling in Palos Verdes often comes with one surprise you cannot see in the staging photos: property taxes. Between California’s reassessment rules and LA County add-ons, your timing and net proceeds can shift if you do not plan ahead. In this guide, you will get a clear, seller-focused look at how the rules work, what Prop 19 changed, and the steps to take before you list. Let’s dive in.
The basics: reassessment in California
Under Prop 13, your assessed value is tied to a base year value with annual increases capped at 2 percent, and the base property tax rate is 1 percent of assessed value, plus voter-approved add-ons. You usually see a reassessment only when there is a change in ownership or new construction. For a plain-English overview of this framework, review the city explanation of Prop 13’s limits and triggers from San Francisco’s assessor resources (learn how assessed value is set).
A sale typically counts as a change in ownership, which lets the county enroll a new base value based on market value at the transfer date. The state’s guidance details common change-in-ownership events and how the assessor determines value at transfer (see the BOE’s overview of change in ownership).
When value increases because of a sale, LA County issues supplemental tax bills that are separate from the regular annual bill. Supplemental bills are prorated to the transfer date and can arrive weeks or months after closing, sometimes two bills if the transfer falls between January 1 and May 31 (how LA County supplemental bills work).
LA County mails annual secured tax bills in October or November. The first installment is due November 1 and becomes delinquent December 10, and the second installment is due February 1 and becomes delinquent April 10 (annual bill timing and due dates).
What Prop 19 means for sellers
Portability for 55+, disabled, and disaster victims
If you are 55 or older, severely disabled, or a victim of wildfire or natural disaster, you may transfer your Prop 13 base to a replacement primary residence anywhere in California. You can use this benefit up to three times, subject to timing rules and partial reassessment if the replacement home is higher in value. You must file a claim with the county assessor for the replacement property (LA County Prop 19 FAQ).
Parent–child transfer rules now limited
Under Prop 19, only a principal residence or family farm can qualify for the parent–child or grandparent–grandchild exclusion. The child or grandchild must occupy the home as a principal residence within one year and file the required claims, and a value limit can trigger a partial reassessment if the market value is far above the original base. Filing is not automatic, so plan for claims and documentation with the assessor (LA County Prop 19 FAQ).
The value cap adjusts every two years
The intergenerational exclusion includes a dollar threshold that adjusts biennially. For transfers from February 16, 2025 through February 15, 2027, the State Board of Equalization set the adjustment at 1,044,586 dollars (BOE announces the current adjustment).
Local add-ons in Palos Verdes to watch
Your bill is more than the 1 percent base rate. Voter-approved bonds and direct assessments, such as city parcel taxes, school parcel taxes, and utility or storm-drain fees, commonly appear on Palos Verdes bills. The City of Palos Verdes Estates notes that parcel and assessment items are a meaningful part of annual taxes, so read your last bill line by line (city finance overview).
A countywide example is the LA County Fire special tax, which is billed on the tax roll in communities served by the County Fire District. For single-family homes, the FY 2024–25 amount was about 76.68 dollars per parcel, subject to annual adjustment (County Fire special tax schedule).
Supplemental bills and escrow: who pays
Because supplemental bills arrive after closing, you and the buyer need clear contract language that assigns responsibility. Local practice is to prorate known taxes at closing and to specify who pays supplemental amounts tied to each party’s period of ownership. Many escrow instructions include re-proration language if bills change later (sample proration approach in escrow materials).
If your sale closes between January 1 and May 31, expect the possibility of two supplemental bills. Build this into your timeline and communication with the buyer (LA County supplemental bill timing).
Common scenarios for Palos Verdes sellers
Standard sale to an unrelated buyer
Your buyer’s assessed value typically resets to market value at transfer. The buyer will receive supplemental bills for the increase, and you will prorate regular taxes in escrow based on the contract. Know that supplemental bills can arrive later, so align expectations and responsibilities in writing.
Selling or transferring to a child
After Prop 19, only a principal residence may qualify for the exclusion, and the child must occupy it as a principal residence within one year and file the required claims. A value cap can cause a partial reassessment if the market value exceeds the allowed threshold. Plan filings early and confirm deadlines with the assessor.
Downsizing at 55 or older
If you qualify, you can carry your lower base to a replacement primary residence in any California county, up to three times. This can reduce your ongoing tax burden and expand your move options. File the portability claim and track timing carefully (Prop 19 eligibility and filings).
Estates and transfers at death
A transfer on death is generally a change in ownership for reassessment, with exclusions for a surviving spouse or registered domestic partner. Executors and heirs should file change-of-ownership and death-related forms promptly. If a child will claim the principal-residence exclusion, ensure occupancy and file within the required window.
Seller checklist before you list
- Pull your current LA County tax bill and read the Detail of Taxes Due, including direct assessments and parcel taxes. Note due dates and any delinquencies to resolve before listing (annual bill overview).
- Review the Preliminary Title Report for recorded notices of special taxes or Community Facilities Districts. Provide the statutory Mello-Roos disclosure if applicable (what Mello-Roos disclosures cover).
- Call the Assessor to confirm your current assessed value, any pending new-construction assessments, and expected timing for supplemental bills.
- If selling to a child or grandchild, ask which claim forms apply and confirm deadlines. If you are 55 or older and buying in California, request portability forms and a timing checklist for the replacement property.
- In your purchase agreement and escrow instructions, specify how to prorate regular taxes and who pays supplemental bills tied to each ownership period. Include re-proration language for later changes.
- Set expectations with buyers about supplemental bill timing, especially for closings between January and May when two bills are common.
- For complex transfers, coordinate early with your tax advisor or estate counsel to align filings and occupancy requirements.
When you understand how assessment, add-ons, and supplemental bills intersect, you can price with confidence, choose the right closing timeline, and avoid post-closing surprises. If you would like help reviewing your tax bill and preparing a sale strategy that maximizes your net, connect with Johannes Steinbeck for a focused, local plan.
FAQs
What triggers a property tax reassessment when I sell in Palos Verdes?
- A change in ownership, such as a sale, usually triggers reassessment to market value at the transfer date, which also generates supplemental bills for the increase.
How does Prop 19 affect selling my Palos Verdes home to my child?
- Only a principal residence can qualify for the exclusion, the child must occupy it as a principal residence within one year, and a value cap can cause a partial reassessment if the home’s value is above the threshold.
Can I keep my low tax base if I downsize within California at 55 or older?
- Yes, if you are 55 or older, severely disabled, or a disaster victim, you may transfer your Prop 13 base to a replacement primary residence anywhere in the state, subject to timing rules and a limit of three transfers.
Why did I receive a tax bill after closing called a supplemental bill?
- LA County issues supplemental bills when the new assessed value is higher than the old one, and they are prorated to the transfer date, often arriving weeks or months after closing.
What local add-ons increase Palos Verdes property tax bills beyond 1 percent?
- Voter-approved bonds and direct assessments such as city parcel taxes, school parcel taxes, and countywide levies like the LA County Fire special tax add to the base 1 percent rate.