The State Board of Equalization notified county assessors December 27 that the inflation increase for the 2025 assessment roll will be 2 percent – the maximum allowed under Proposition 13.
In a letter to assessors, the BOE noted that the inflation factor is the percentage change, rounded to the nearest one-thousandth of 1 percent, from October of the prior fiscal year to October of the current fiscal year in the California Consumer Price Index (CCPI) for all items, as determined by the California Department of Industrial Relations.
“Information from the Department of Industrial Relations shows that the CCPI increased from 335.150 in October 2023 to 343.575 in October 2024,” the BOE wrote. “Rounded to the nearest one-thousandth of 1 percent, this is an increase of 2.514 percent.”
Thanks to the cap, property owners will see their assessed values increase 2 percent, rather than the full 2.514 percent.
The BOE issued letters to assessors on six other issues in late December, primarily to inform assessors of statistical updates that are made at the end of every year:
- 2024-25 Income Levels for the Welfare Exemption.
- Vessel Valuation Factors for Lien Date 2025.
- Assessors’ Handbook Section 531, Residential Building Costs.
- Assessors’ Handbook Section 534, Rural Building Costs.
- Assessors’ Handbook Section 581, Equipment and Fixtures Index, Percent Good and Valuation Factors.
- Notice of the Taxpayers’ Rights Advocate Office information sheets on the co-tenancy exclusion and reporting requirements when a real property owner dies.