I just purchased an appartment in Los Angeles. I know the actual property taxes percentage points likely won’t change much over the years (~0.75%), but I’m still not sure on what value of the home this percentage is applied.
Is it the closing price (so how much I paid for the apartment) and then it never changes? So if I bought my home $1M and in 20 years it’s now worth $2.4M, I still would have paid 0.75% on $1M all those years?
Or is my home value is being reassessed every year (by whom, the city department?) based on the current market (or if I do renovations) and then the dollar value of property taxes are based on this newly assessed home value? So that would mean that if my home value increased by 10% every year the property taxes would be adjusted on this new home value? (So the second year I’d pay 0.75% on $1.1M if the assessed value is now 10% higher).
I’ve made quite a bit of research online but couldn’t find a clear answer.