Property Tax Basics For Nevada City Homeowners

Property taxes in Nevada City can feel confusing, especially if you just bought a home or made improvements. You want a clear picture of what you’ll owe, when bills arrive, and how to avoid surprises. In this guide, you’ll learn the basics of California property taxes, how Nevada County handles assessments and supplemental bills, and the relief programs that might apply to you. Let’s dive in.

How Nevada City property taxes work

Prop 13 basics

California’s Proposition 13 is the foundation for your property tax bill. The base annual tax is limited to 1% of your assessed value, plus voter‑approved local charges. Your assessed value can increase by up to 2% per year for inflation after it is set, unless there is a change in ownership or new construction that creates a new base year value.

The Nevada County Assessor sets assessed values under state law. If you disagree with your value, you have local appeal options through the county’s Assessment Appeals Board.

How assessed value is set

• Purchase or change in ownership. In most regular sales, the purchase price becomes your new base year value.
• New construction. Permitted additions and improvements add to your assessed value. The assessor enrolls the added value when the work is complete.
• Market declines. If current market value falls below your Prop 13 value, you can apply for a temporary reduction, often called a Prop 8 reduction. The assessed value can be restored later if the market recovers.

What your bill includes

Your total tax rate varies by parcel in Nevada County. Most bills include:

• The base 1% levy on your assessed value.
• Voter‑approved charges like school or community bonds and parcel taxes.
• Special district assessments for services such as fire, sewer, lighting, or community facilities districts (Mello‑Roos where applicable).
• Any direct charges and supplemental assessments that apply for the year.

Always review the most recent tax bill for your specific parcel to see the exact line items and rates.

Reassessment and supplemental bills

Change in ownership

A sale or other change in ownership usually triggers a reassessment to current market value and sets a new base year value. Because the tax year runs July 1 to June 30, reassessments that occur mid‑year are handled with a supplemental assessment for the difference between the old and new values for the remainder of the fiscal year.

You will receive a supplemental tax bill separately from your regular annual bill. These can arrive months after closing. Escrow typically prorates the regular bill at closing, but supplemental bills are often the new owner’s responsibility based on your purchase date and escrow terms. Review your closing documents to confirm how taxes were allocated.

New construction and permits

Permitted improvements that add value, such as a new garage or an accessory dwelling unit, can trigger a reassessment for the added value and a supplemental bill when the work is complete. If unpermitted work is discovered later, the assessor can assess added value retroactively.

How supplemental bills are calculated

A supplemental bill reflects the tax on the increase in assessed value from your change date to June 30. For example:

• Purchase price: $500,000
• Base 1% tax: $5,000 per year
• If local assessments add 0.15%, total annual tax is about $5,750
• If you close mid‑year, your supplemental bill covers your share of the difference between the old owner’s assessed value and your new value for the remaining months of the fiscal year

Because counties finalize assessments on different timelines, you may receive more than one supplemental bill for the same change as the supplemental roll is updated.

Exemptions and relief programs

Homeowners’ Exemption

If the property is your owner‑occupied primary residence, you may qualify for the California Homeowners’ Exemption. This reduces the taxable value of your home by a set amount established by state law. Confirm the current exemption amount and filing steps with the Nevada County Assessor.

Disabled Veterans’ Exemption

Qualified disabled veterans may be eligible for an additional exemption that reduces taxable value. The exemption amounts and qualifications vary. Contact the assessor for details and application requirements.

Property Tax Postponement

The State Controller’s Office administers a Property Tax Postponement program for eligible seniors 62 or older, and for blind or disabled homeowners who meet income and asset criteria. Applications and eligibility are handled by the state program.

Disaster relief

Special rules may apply after declared disasters. If your home sustains qualifying damage, ask the assessor about temporary relief options that can reduce your taxable value while you rebuild.

Appeals and Prop 8 reductions

When to appeal

If you believe your assessed value is too high, you can file an appeal with the Nevada County Assessment Appeals Board. Deadlines are strict. They are commonly within 60 days of the mailing of a change in assessment notice or by September 15 for annual assessments. Verify the exact deadline on your notice or with the assessor before filing.

Prop 8 temporary reductions

When market value dips below your Prop 13 protected value, you can request a Prop 8 temporary reduction for that year. If granted, the assessed value can rise again later as the market recovers, up to your trended Prop 13 value. This is a year‑to‑year determination, so keep records and follow up if market conditions change.

Budgeting steps for buyers

Before you buy or during escrow

• Review the current and prior year tax bills for the parcel. Confirm the assessed value, any exemptions, and all line items.
• Ask whether any supplemental assessments are expected, and whether there has been recent new construction.
• Check the preliminary title report and seller disclosures for special assessments or community facilities district taxes that will continue after closing.
• Plan for a supplemental bill after closing. Escrow usually prorates the regular bill, but supplemental bills are separate and can be your responsibility.
• Use a simple rule of thumb to estimate carrying costs. Start with 1% of your purchase price, then add an allowance for local assessments. Always verify using the parcel’s most recent bill.

After you close

• Register with the Nevada County Treasurer‑Tax Collector to view and pay bills online. Set calendar reminders for installments and due dates.
• Watch for assessment notices from the assessor. Keep these with your records since they show your new base year value and any supplemental assessments.
• File for the Homeowners’ Exemption if you occupy the home as your primary residence.
• Contact the assessor if you think your value is incorrect or if market conditions support a Prop 8 reduction. Observe all appeal deadlines.
• Keep permits and completion documents for any improvements. This helps you understand when added value may be enrolled and if a supplemental bill will follow.

Prop 19 changes to know

California’s Proposition 19 changed several rules effective 2021.

• Tax base portability. Eligible homeowners who are 55 or older, severely disabled, or victims of wildfire or disaster may transfer their tax basis to a replacement primary residence under expanded rules. Multiple transfers may be allowed.
• Parent‑child and grandparent‑grandchild transfers. Many transfers no longer keep the original assessed value under the old exclusions. Eligibility is fact‑specific. Contact the assessor to review your situation and filing steps.

These rules can affect whether a transfer triggers reassessment and how you plan your next move.

Local contacts and tools

For parcel‑specific assessments, deadlines, exemptions, and bills, rely on Nevada County’s offices and state programs:

• Nevada County Assessor. Valuations, base year value questions, exemptions, Prop 19 guidance, and parcel records.
• Nevada County Treasurer‑Tax Collector. Tax bill lookups, payment options, installment schedules, and delinquency information.
• Nevada County Assessment Appeals Board. Procedures and filing deadlines for appeals.
• Nevada County Auditor‑Controller. Tax rate and apportionment data.
• State Controller’s Office. Property Tax Postponement program and statewide property tax information.
• California Constitution Article XIII A and the Revenue and Taxation Code. Legal framework for assessments, supplemental rolls, and due dates.

If you recently bought or plan to sell, also confirm that a Preliminary Change of Ownership Report was filed at closing since this triggers the assessor’s review after a transfer.

Buying or owning in Nevada City should feel organized and predictable. With the right plan, you can estimate your tax exposure, prepare for supplemental bills, and take advantage of exemptions and appeals that fit your situation. If you want local guidance tailored to your property and neighborhood, connect with our Sierra Foothills team. Get your free home valuation and a property tax walkthrough with Realty Moore.

FAQs

What is Prop 13 in California property taxes?

• Proposition 13 limits the base property tax to 1% of assessed value, caps annual assessed value increases at up to 2%, and allows added voter‑approved charges on top of the base levy.

How are Nevada City property taxes calculated?

• Your total bill starts with 1% of your assessed value, then adds voter‑approved bonds, parcel taxes, special district assessments, and any direct charges that apply to your parcel.

Why did I get a supplemental tax bill after buying in Nevada City?

• A change in ownership triggers reassessment and a prorated supplemental bill for the difference between the old and new assessed values for the rest of the fiscal year.

Can I transfer my tax base under Prop 19 in Nevada County?

• If you are 55 or older, severely disabled, or a victim of wildfire or disaster, you may be able to transfer your tax basis to a replacement primary residence under expanded Prop 19 rules; check eligibility with the assessor.

How do I appeal my assessed value in Nevada County?

• File with the Nevada County Assessment Appeals Board by the stated deadline, which is commonly within 60 days of a notice or by September 15 for annual assessments; verify your exact date with the assessor.