The state board of equalization assesses the property valuation in California in order to promote the uniformity in the property assessment. The properties, which are taxable in California, are decided by either the federal law, California constitution or the board of equalization. Both the real property and personal property are taxable in California. The definition of the real property as given by the state board of equalization refers to the possession, ownership or claims of land with minerals or quarries or even with buildings, fences and fruit trees that come under property taxation in California.
The personal properties in California can either be tangible or intangible. The tangible properties in California come under property taxation and the examples of such property are office furniture, equipment and machinery and supplies. The tangible personal properties that don't come under taxation are - noncommercial worth of $400 or less, household goods and personal effects and the commodities that are held for sale in the business.
The examples of nontaxable intangible property in California are banknotes, shares of capital stock, bonds, corporate securities, mortgages, insurance policies, liquor licenses, copyrights and club memberships. Classification of property is necessary in California to decide whether it is a real or personal property.
Different forms of full and partial tax exemptions are available in the California property tax system. The state legislature can take decision on the property tax exemptions on any kind of personal property but in order to provide tax reduction to a real property, the legislation needs specific authority from the Constitution of the state. The categories of property on which the property tax exemption in California is possible are - personal effects, homeowner's exemption, intangible personal property, business inventory, disabled veteran's exemption, welfare exemption, church exemption, low-value exemption, burial plots, aerospace museums, free libraries and museums, historical aircraft, etc. The annual property tax assessment in California makes the property owner liable to pay a tax amount calculated at 1% of the taxable value of the property on 1st of January.
