Buying or owning in Beverly Hills? The property tax line can be the most misunderstood number in your budget. If you are comparing homes or planning a sale, Prop 13, Prop 19, and local add-ons can change your annual costs more than you might expect. This guide breaks it down in plain language so you can plan with confidence, avoid surprises, and make cleaner decisions. Let’s dive in.
Prop 13 basics in Beverly Hills
How assessed value is set
When you buy a property or complete new construction, the county reassesses it to current market value. That number becomes your base-year assessed value. Your annual property tax starts with 1% of that assessed value, plus any voter-approved local add-ons that apply to your parcel.
The 2% cap and why it matters
After your base year is set, Prop 13 limits assessed value growth to a maximum of 2% per year. This cap helps long-term owners by keeping taxes relatively stable even when market prices rise quickly. For new buyers, the initial reassessment to purchase price is the big step-up that sets their starting point.
What buyers should expect at closing
A sale usually triggers reassessment to your purchase price. You will receive the standard annual secured tax bill and, in many cases, one or more supplemental bills that capture the difference between the seller’s old assessed value and your new base. These supplemental bills are prorated from the date you took ownership and arrive in addition to your regular bill.
When reassessment happens
Changes in ownership
Most transfers from one owner to another trigger reassessment of the entire property to current market value. That new value becomes the base for future years subject to the 2% cap. Budget for a higher annual tax burden than the seller likely paid.
New construction and renovations
Significant additions or new construction are reassessed based on the value added by the work. Routine repairs and maintenance typically do not trigger reassessment. Check with the county assessor in advance if you plan a major remodel so you understand how it could impact your tax bill.
Family transfers and trusts under Prop 19
Many intergenerational transfers that once avoided reassessment now do not, unless they meet specific Prop 19 conditions. Transfers that are not used as the transferee’s principal residence or that exceed value thresholds are likely to be reassessed. For trust planning and family changes, confirm eligibility with the county assessor and your legal advisor.
Proposition 19 at a glance
Portability for eligible homeowners
If you are 55 or older, severely disabled, or a victim of wildfire or disaster, you may be able to transfer your base-year value to a replacement primary residence anywhere in California. There are rules about how many times you can use this and how it works if the replacement home is higher in value. If you qualify, this can help keep your property tax manageable when you move.
Parent-child rule changes
Prop 19 narrowed the prior parent-child and grandparent-grandchild exclusions. Many transfers to heirs now trigger reassessment unless the new owner lives in the home as a principal residence and the transfer fits within specific limits. In a high-value market like Beverly Hills, heirs are more likely to see a tax increase than under prior rules.
What it means for Beverly Hills estates
Estate planning for legacy properties should factor in potential reassessment under Prop 19. If keeping a home in the family is a goal, coordinate early with counsel and the assessor to evaluate options. Clarity on taxes helps you weigh whether to retain, rent, or sell.
Local add-ons in Beverly Hills
Mello-Roos, bonds, and special assessments
On top of the 1% base rate, many parcels carry voter-approved bonds, parcel taxes, or Mello-Roos/Community Facilities District assessments. These fund local infrastructure, schools, and services. They can materially increase your annual bill.
Why similar homes owe different amounts
Two homes with identical market prices and assessed values can still have different tax totals. Parcel-specific add-ons vary by neighborhood and even by block. Always review the actual parcel’s tax bill, not just a percentage estimate.
How to check your parcel
Use Los Angeles County Assessor records for assessed value history and supplemental notices, and the Treasurer & Tax Collector for current and past bills with itemized assessments. Your title report and escrow documents also list Mello-Roos and special assessments. Ask the seller or listing agent for the most recent secured bill and any supplemental bills.
Budgeting examples
Example: new purchase (illustrative only)
Assumptions: purchase price 5,000,000 dollars; local add-ons estimated at 0.25% of value; base rate 1.00%.
- Estimated annual property tax: (1.00% + 0.25%) × 5,000,000 dollars = 62,500 dollars per year.
- Supplemental assessment: if the seller’s assessed value was 2,000,000 dollars, the increase is 3,000,000 dollars. Supplemental tax at 1.25% would be 37,500 dollars, prorated from the change-of-ownership date through the tax year. Expect one or more supplemental bills in addition to the annual bill.
Example: long-time owner vs new buyer
A seller who bought in 1990 for 800,000 dollars may have a much lower assessed value due to the 2% cap. A 2025 sale at 6,000,000 dollars will reassess the property to 6,000,000 dollars for the buyer. The buyer’s annual taxes would be roughly 1% of 6,000,000 dollars plus local add-ons, which is a significant increase over the seller’s tax burden.
Buyer checklist
- Get the latest secured tax bill and any supplemental bills from the seller.
- Order a title report and review listed Mello-Roos, bonds, and special assessments.
- Confirm parcel-specific assessments with the Los Angeles County Assessor or Treasurer & Tax Collector.
- Include an allowance for supplemental assessments in your closing budget.
- Decide whether to escrow property taxes with your lender or pay directly.
- If you are 55 or older, severely disabled, or a disaster victim, explore Prop 19 base value portability for your replacement primary residence.
Seller checklist
- If you are considering an intergenerational transfer, review Prop 19 rules with an estate attorney and the county assessor early.
- Provide buyers with complete historic tax bills and disclosures on parcel-specific assessments.
- If you are eligible to transfer your base-year value to a new primary residence, start documentation early to meet Prop 19 timelines.
Payment timing and supplemental bills
The county issues an annual secured property tax bill and may issue supplemental bills after a sale or new construction. Supplemental bills arrive separately and are prorated based on when the change occurred. Coordinate with your escrow team so you know who is responsible for any supplemental amounts that arrive after closing.
How we help you plan
Property taxes should not be a guess. We help you request parcel-specific bills, review assessments during diligence, and model realistic carrying costs alongside your lending and advisory team. If you are buying or selling in Beverly Hills, clear tax planning strengthens your negotiation, avoids surprises, and supports smarter timing.
Ready to map out your next move with clarity? Reach out to Tom Dolezel for tailored market advisory and high-touch representation.
FAQs
Beverly Hills remodel reassessment rules: will upgrades raise my taxes?
- Significant new construction or additions are typically reassessed based on the value added; routine repairs and maintenance usually are not. Confirm your project details with the county assessor before you start.
Supplemental property tax bills in Los Angeles County: what are they?
- A supplemental bill captures the tax difference between the old and new assessed values after a sale or new construction, prorated from the change date. It arrives in addition to your annual secured bill.
Prop 19 portability for second homes in California: does it apply?
- No. Prop 19 portability applies to a replacement primary residence for eligible homeowners, not to vacation or second homes.
Parent-child transfers in Beverly Hills under Prop 19: can heirs keep a low tax base?
- Only in limited cases. Many intergenerational transfers now trigger reassessment unless the transferee uses the property as a principal residence and value limits are met. Consult the assessor and your estate counsel.
Finding the exact property tax rate for a Beverly Hills parcel: where to look?
- Check the Los Angeles County Treasurer & Tax Collector for the current and historic bills with itemized add-ons, and the Assessor for assessed value history. Title and escrow can also confirm parcel-specific assessments.
