Unsecured property low value exemption increased to $7,500 for business property, boats and aircraft

The unsecured property low value exemption for business equipment, boats and aircraft has been increased to $7,500 following a vote by the Board of Supervisors. In addition, liens will no longer be recorded if the outstanding delinquent tax base amount is less than $75. The secured property low value exemption will remain at $3,000.

These two changes for unsecured property taxes came into effect on January 1, 2021.

“This change will benefit almost 30,000 existing business owners and taxpayers as they will no longer be charged unsecured property taxes for these low value properties,” Treasurer Freidenrich said. “With the cost to produce a tax bill higher than the revenue received, this is a win-win for the County and taxpayers.”

The last time the County increased the unsecured property low value exemption was 2015, when it went from $1,350 to $3,000 ($30 in tax). The average cost of producing an unsecured property tax bill is $96.70, while the average cost for secured property tax bill is approximately $31.44.

“I am delighted that the Board of Supervisors voted to approve our recommended change in the unsecured property low value exemption amount,” said Orange County Assessor Claude Parrish. “It will give taxpayers and businesses much needed flexibility in managing their low value properties.”

The 2020 unsecured annual property tax roll, with the reduction in the assessed value for business properties with value between $3,000 and $7,500, is only 0.65 percent of the FY 2020-2021 unsecured property tax roll value. The reduction in overall property tax revenue is $1.56 million. The cost of performing the unsecured property assessment and tax collection on these properties is estimated at $2.85 million, resulting in a savings of $1.29 million.

For questions related to assessed values and exemptions, contact Assessor Claude Parrish at (714) 834-2734 or call the Taxpayer’s Advocate, Maria Melchor, at 714-568-5737 between 9 a.m. to 5 p.m. PST.

For questions on property tax bills and tax bill payments, please email [email protected], or call Taxpayer Services at (714) 834-3411 between 9 a.m. to 5 p.m. PST.

The article above was released by the Office of the Orange County Treasurer – Tax Collector.