This section focuses on the property tax and all other local taxes. The property tax is a major source of tax revenue for California's local governments, including cities, counties, school districts, and special districts. Property taxes have been part of California's tax structure since 1849, and are among the most stable of its revenue sources. The current distribution procedures and statewide average allocation percentage are shown in the accompanying figure. Property Tax Base .
Real property includes land, buildings, fixtures, mineral rights, and other components.
Personal property is generally limited to businesses and includes things like equipment, machinery, and aircraft. Certain types of property are exempt, such as property owned by governments or charities, household personal property, automobiles, securities, and business inventories. Property Assessment . The property tax is based on the assessed value of real and personal property in the state. Prior to the adoption of Proposition 13 in 1978, all property was assessed at the market rate and a locally determined tax rate was applied to the assessed value in order to calculate the total tax levy.