CHLA Lodging News March April 2021

www.calodging.com March/April 2021 11 continues  PROPERTY TAXES ARE A SIGNIFICANT part of any hotel’s overall tax liability. Studies show that property taxes account for 37% of all state and local business taxes; this is as much as sales/use, state corporate income taxes, and excise taxes combined. Property tax rates in California have been fixed at 1% of assessed value since the passage of Proposition 13 in 1978. A property’s assessed value is determined by the sale price in the year in which the property was last sold, that sales date becomes the property’s “base year” for assessed value. By law, the value of a property increases by only 2% annually, regardless of market conditions. What You Need To Know Taxpayers now have the chance to work proactively with California County Assessors toward a reduced value for their 2021 assessment prior to the roll being closed for the 1/1/2021 lien date.