Check Your Understanding-Answers
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When is real property reassessed?
Real property is reassessed every time it is transferred.
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What does Proposition 58 state?
Proposition 58 allows the transfer of property from one spouse to another or to children without triggering a reassessment.
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For whom do property tax exemptions exist and for how much?
There is a homeowner's exemption for $7,000 against the assessed value and a veteran's exemption for $4,000 against the assessed value.
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Explain the documentary transfer tax.
The California tax laws allow a county or city to adopt a documentary transfer tax to apply to the transfer of properties located in the county. The tax is computed on the total price paid for the property, less any assumed loans. The tax is computed at the rate of 55 cents for each $500 of consideration or fraction thereof.
