The median list price for single-family homes last year was $3,198,800.  The median square footage of living space for homes in Los Gatos is 4,011 sq.ft. The official town area is very small, 11.2 square miles, but the surrounding 100 square miles of the Santa Cruz Mountain range uses the Los Gatos address and zip code, 95033. With these features in mind, let’s look at how the Los Gatos property tax compared with other US cities.
Cities in the State of California must all follow the Californian Constitutional tax laws and regulations with regard to the 1 percent property tax law. Where property taxes vary greatly from city to city are the price per square foot, because different property locations, age of the property and other variables impact the value of a home and the other two sections of the tax bill, line items for AD’s that come under the Improvement Acts of 1911 and 1915, and the number and cost of Voter-Approved Bonds that affect the specific property.
Since the median list price for on the market single family homes in Los Gatos is currently $3,198,800, we can take a look at two sample Property Tax Bills and Supplemental Tax bills due at the time of sale, to compare the property tax for a home in this price range, one in Los Gatos, CA 95032 and a similar property’s list price, date built, and square footage of living space.
Comparing  Los Gatos Property Tax to the Los Angeles County Area
Both comparative properties are older, but their list prices fall within the current median list price for single-family homes on the market today. The Los Gatos, CA 95032 is under the median list price at $2,895,000. (Estimated $1,911,000.)  Los Angeles County property description: 4-bedrooms, 3.5 bathrooms, 3,000 square ft., price per square ft. = $965, built in 1958. The Los Angeles CA 90036 Property is also listed currently for $2,895,000. (Estimated $1,8765,000.). Property description for the Los Angeles home includes 5-bedrooms, 6 bathrooms, with 4,286 square ft. of living space, the price per sq.ft. equals $675, and was built in 1939/1941.
In this comparison between two properties, the value per square foot of the Los Gatos property is 1/3 higher than a similar listing in Los Angeles. Look at the size of each property’s lot, the Los Gatos property is 25,395 square feet that measured approximately a half acre of land. The property in Los Angeles is 14,329 square feet, slightly less that 1/4 acre.
The property in Los Gatos has less living space, 1 less bedroom, and half the bathrooms of the Los Angeles property, but it is also 17-years younger. So the variables present in each property includes the land value assessments and improvements.
According to what the SCC Government, Tax Assessor in Santa Clara County says, the Los Gatos land value is worth $1,604,327. for property tax evaluation purposes, and the improvements (house) is valued at $199,562. According to the Los Angeles County Treasurer and Tax Assessors Office, the Los Angeles land is valued at $717,431. and the improvements valued at $265,598. There is no surprise here as there is more than twice as much land on the Los Gatos property than in Los Angeles, and even though the house is younger, it is smaller with a lesser number of bedrooms and bathrooms.
Detailed Look at the Property Bills and Line Items for each City
The actual property tax percent for the Los Gatos home is 0.794 percent, and in Los Angeles,  property is taxed at 1.191994 percent. The first section of the property tax bill is the tax assessors’ actual valuation of the property at the established tax rate. So line one of the property tax bill for the homeowner in Los Gatos is $21,388.27 and $22,385.62 for the Los Angeles property tax bill. The additional taxes when purchasing a new home sometimes includes Supplemental Taxes due within four months of the purchase. The Los Gatos property is billed $2,556.82 to be paid half then and the other half in six months. The property in Los Angeles has a Supplemental Tax paid twice per year currently calculated at $5,980.19 by April 2016, and $5,980.20 paid in November of 2016.
Line Items in Section 2 & 3 of these two tax bills are complex and very specific. There are seven line items on the Los Gatos Property Tax bill and the items range from $5.08 for Code 847 Mosquito-Vector Control (800-273-5167)  to $460.42 for WV Sewer Sani/Storm (408-378-2407). The total for these Voter Approved Bonds and Municipal Services is $4,894.54. Los Angeles County has much more in terms of homeowner municipal responsibilities, the bi-annual total for their line items was $10,815 added to the property tax bill.
It is clear that the homeowner in both cities has no control over the Bonds voted in prior to their home purchase, but keeping an eye on the upcoming proposals in their area will help to reduce certain spending in the future. Finally, the property tax each year can increase periodically so it is wise for new homeowners to be aware of these twice per year property tax payments and budget accordingly.
These two examples did not happen to live in a school district that has Mello-Roos CFD line items, but when a property has this fee for public improvements and municipal services, there are strict rules to timely payment of property taxes. It is the law that sellers notify the buyer with a “Notice of Special Tax” when they are in a Mello-Roos district.
If you are delinquent in paying your property tax on time, you are subject to an accelerated foreclosure lien. This can entail foreclosure action, legal fees, additional interest, and collection costs.
Property Tax Rate Comparison for the State
How would the property tax rate in New Hampshire affect the monthly cost for a home of equal marketing value compared to the Los Gatos property in California? Both homes are located in a prime neighborhood, Los Gatos on 25,396 square foot Lot. The Bedford NH property is a Hilltop Estate with 7.44 acres of usable land. gain, the Los Gatos property ranks higher on acreage, and the competitor ranks higher on living space, and the number of bedrooms and bathrooms.
Property Demographics
Los Gatos, CA Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Bedford, New Hampshire
4-Br, 3.5-Ba                            6-Br, 9-Ba
3,000 square ft. Lot                     10,936 square ft. Lot
Built – 1958 Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Built – 2004
Price per square ft. = $965. Â Â Â Â Â Â Â Â Â Â Â Â Â $310.
Property Tax Rate = 0.794% Â Â Â Â Â Â Â Â Â Â Â Â Â Property Tax Rate = 2.205%
Annual Property Tax – $22,986. Â Â Â Â Â Â Annual Property Tax – 5,510.
Clearly it’s not the size of the home or Lot that makes the price difference here, it is the price per square foot, that is the location value impacting each home’s property taxes.
2 Point Highlight
1) There are several variances that affect property taxes making the total different for similar properties of the same listing price in different cities or states.
2) When a buyer is looking at affordability of a property, it is wise to also calculate the property tax owed twice a year with the mortgage and upkeep costs, it can affect your home price listing    budget and counter offer.
