California Taxation of Real Estate exam
2026 questions and rationales answers
1. Which California state agency administers the collection of property taxes?
A. California Department of Real Estate
B. California Department of Tax and Fee Administration
C. County tax collector
D. Franchise Tax Board
Rationale: County tax collectors generally collect secured and unsecured property taxes for their
counties.
2. Real property taxes in California are primarily based on the property's:
A. Current market rent
B. Assessed value
C. Original purchase price plus improvements only
D. Replacement cost
Rationale: Property taxes are generally calculated using the property's assessed value, subject to
California's constitutional rules.
3. Proposition 13 generally limits the annual increase in a property's assessed value to:
A. 1%
B. 2%
C. 5%
D. 10%
Rationale: Proposition 13 generally limits annual increases in assessed value to no more than
2%, subject to exceptions.
4. Under Proposition 13, the base-year value is generally established when:
A. The property is first constructed
B. The property changes ownership or undergoes a qualifying new construction
C. The owner refinances
D. The property is listed for sale
Rationale: A change in ownership or qualifying new construction can establish a new assessed
value.
,5. California property taxes are generally levied based on:
A. 50% of market value
B. 75% of market value
C. 1% of assessed value, plus voter-approved bonded indebtedness and certain other charges
D. 2% of assessed value only
Rationale: Proposition 13 established a general 1% rate, with additional voter-approved bonded
debt and certain assessments possible.
6. Which event can trigger a reassessment of California real property?
A. Obtaining a new mortgage
B. Changing insurance companies
C. A change in ownership
D. Renting the property to a tenant
Rationale: A change in ownership is one of the principal events that can trigger reassessment.
7. Which of the following generally does NOT trigger a reassessment?
A. Sale of the property
B. Transfer to an unrelated buyer
C. Refinancing the existing mortgage
D. A qualifying change in ownership
Rationale: Refinancing alone generally does not constitute a change in ownership for property-
tax reassessment purposes.
8. What is a supplemental property tax bill?
A. A bill for federal income taxes
B. A bill reflecting a change in assessed value caused by a change in ownership or new
construction
C. A penalty for late mortgage payments
D. A tax on personal income from rent
Rationale: Supplemental assessments account for changes in assessed value occurring during
the tax year.
9. When property is sold in California, the new owner's assessed value is generally based on:
A. The seller's previous assessed value forever
B. The property's new taxable value, generally reflecting the change in ownership
, C. The property's original construction cost
D. The seller's income
Rationale: A qualifying change in ownership generally establishes a new base-year value.
10. Which California constitutional amendment is most closely associated with property-tax
limitations?
A. Proposition 60
B. Proposition 13
C. Proposition 90
D. Proposition 19
Rationale: Proposition 13 established major limitations on California property taxation and
reassessment.
11. California's property tax year generally runs from:
A. January 1 through December 31
B. July 1 through June 30
C. April 1 through March 31
D. October 1 through September 30
Rationale: California's fiscal property-tax year is generally July 1 through June 30.
12. The first installment of California secured property taxes is generally due:
A. January 1
B. November 1
C. February 1
D. April 10
Rationale: The first installment is generally due November 1 and becomes delinquent after
December 10.
13. The second installment of California secured property taxes is generally due:
A. December 10
B. January 31
C. February 1
D. June 30
Rationale: The second installment is generally due February 1 and becomes delinquent after
April 10.
2026 questions and rationales answers
1. Which California state agency administers the collection of property taxes?
A. California Department of Real Estate
B. California Department of Tax and Fee Administration
C. County tax collector
D. Franchise Tax Board
Rationale: County tax collectors generally collect secured and unsecured property taxes for their
counties.
2. Real property taxes in California are primarily based on the property's:
A. Current market rent
B. Assessed value
C. Original purchase price plus improvements only
D. Replacement cost
Rationale: Property taxes are generally calculated using the property's assessed value, subject to
California's constitutional rules.
3. Proposition 13 generally limits the annual increase in a property's assessed value to:
A. 1%
B. 2%
C. 5%
D. 10%
Rationale: Proposition 13 generally limits annual increases in assessed value to no more than
2%, subject to exceptions.
4. Under Proposition 13, the base-year value is generally established when:
A. The property is first constructed
B. The property changes ownership or undergoes a qualifying new construction
C. The owner refinances
D. The property is listed for sale
Rationale: A change in ownership or qualifying new construction can establish a new assessed
value.
,5. California property taxes are generally levied based on:
A. 50% of market value
B. 75% of market value
C. 1% of assessed value, plus voter-approved bonded indebtedness and certain other charges
D. 2% of assessed value only
Rationale: Proposition 13 established a general 1% rate, with additional voter-approved bonded
debt and certain assessments possible.
6. Which event can trigger a reassessment of California real property?
A. Obtaining a new mortgage
B. Changing insurance companies
C. A change in ownership
D. Renting the property to a tenant
Rationale: A change in ownership is one of the principal events that can trigger reassessment.
7. Which of the following generally does NOT trigger a reassessment?
A. Sale of the property
B. Transfer to an unrelated buyer
C. Refinancing the existing mortgage
D. A qualifying change in ownership
Rationale: Refinancing alone generally does not constitute a change in ownership for property-
tax reassessment purposes.
8. What is a supplemental property tax bill?
A. A bill for federal income taxes
B. A bill reflecting a change in assessed value caused by a change in ownership or new
construction
C. A penalty for late mortgage payments
D. A tax on personal income from rent
Rationale: Supplemental assessments account for changes in assessed value occurring during
the tax year.
9. When property is sold in California, the new owner's assessed value is generally based on:
A. The seller's previous assessed value forever
B. The property's new taxable value, generally reflecting the change in ownership
, C. The property's original construction cost
D. The seller's income
Rationale: A qualifying change in ownership generally establishes a new base-year value.
10. Which California constitutional amendment is most closely associated with property-tax
limitations?
A. Proposition 60
B. Proposition 13
C. Proposition 90
D. Proposition 19
Rationale: Proposition 13 established major limitations on California property taxation and
reassessment.
11. California's property tax year generally runs from:
A. January 1 through December 31
B. July 1 through June 30
C. April 1 through March 31
D. October 1 through September 30
Rationale: California's fiscal property-tax year is generally July 1 through June 30.
12. The first installment of California secured property taxes is generally due:
A. January 1
B. November 1
C. February 1
D. April 10
Rationale: The first installment is generally due November 1 and becomes delinquent after
December 10.
13. The second installment of California secured property taxes is generally due:
A. December 10
B. January 31
C. February 1
D. June 30
Rationale: The second installment is generally due February 1 and becomes delinquent after
April 10.
