The tax bill on a Coronado home is the product of a few laws passed over four decades. Seeing them in order makes the rules easier to remember, and makes it clear why two similar houses on the same street can pay very different amounts.
Property Tax History
Prop 13 Since 1978: A Coronado Timeline
The laws that shape a Coronado home’s tax bill, in the order they were passed, set beside the island’s home values since 2000.
The laws, in order
- June 6, 1978, Proposition 13. Voters set the base property tax at 1% of assessed value, rolled assessments back to their 1975–76 values and limited annual increases to inflation or 2%, whichever is less. Homes are reassessed at market value when they are sold or built.
- November 1978, Proposition 8. Allows a temporary reduction in assessed value if a home’s market value on January 1 falls below it. The assessor reviews the reduction each year, and the value can never go above the Proposition 13 value.
- 1982, the Mello-Roos Community Facilities Act. Created a way for districts to fund roads, parks and other facilities with special taxes that are not limited by Proposition 13. It is a feature of newer communities more than of older ones like the Village.
- July 1, 1983, supplemental assessments. State law began requiring the assessor to value a property when ownership changes or new construction is completed, which produces the supplemental bill a buyer receives after closing.
- 2021, Proposition 19. Narrowed the exclusion for parent-to-child transfers and let homeowners who are 55 or older, severely disabled or disaster victims carry their tax base to a replacement home.
The long view
Coronado’s values through it all
The peaks, the pullback and the recoveries in ZIP 92118 since 2000.
The cycles, one line each
Zillow Home Value Index for ZIP 92118. Dates are month ends; changes are nominal, not adjusted for inflation.
| Phase | Dates | Typical value | Change |
|---|---|---|---|
| January 2000 to the mid-2000s peak | Jan 2000 to Sep 2006 | $577,830 to $1,370,372 | +137% |
| Peak to trough | Sep 2006 to Oct 2011 | $1,370,372 to $1,019,393 | −26% |
| Trough to a new high | Oct 2011 to Mar 2015 | $1,019,393 to $1,377,387 | +35% |
| March 2020 to the record high | Mar 2020 to Aug 2026 | $1,593,603 to $2,563,759 | +61% |
| Record high to now | Aug 2026 to Aug 2026 | $2,563,759 to $2,563,759 | +0.0% |
From Jan 2000 the typical value climbed +137% to a peak of $1,370,372 in Sep 2006, slipped −26% to $1,019,393 by Oct 2011, and did not pass the old peak until Mar 2015, about 8.5 years after it. The record so far is $2,563,759 in Aug 2026; the latest reading is $2,563,759 (Aug 2026).
Measured from the same starting point, the ZIP’s values have grown about 3% more than the wider metro area since January 2000.
ZIP 92118San Diego metro
What the two pictures say together
Proposition 13 was written to slow the growth of tax bills when values rose quickly, and the island’s history shows why owners noticed. When a home’s market value climbs faster than the 2% cap, the gap between what it is worth and what it is assessed at widens each year an owner stays. That gap is invisible in the tax bill until a sale, when the assessor resets the value to the price paid. It also explains why a long-held home’s tax bill often looks small next to the price a buyer sees on a listing.
When values dip, Proposition 8 works in the other direction: an owner whose home’s market value falls below the assessed value can ask for a temporary reduction, which the assessor reviews every year.
Worked example
The gap, illustrated
A purchase at today’s typical value, with the assessed value capped at 2% and the market value rising faster.
The base tax, ten years out
Illustration: buy at $2,563,759 (the typical home value in ZIP 92118, Aug 2026). Tax is figured at 1.15% of value. Column two follows the 2% ceiling on yearly increases; column four follows a market that grows 5% a year. These are not forecasts.
| Point in time | Assessed value | Property tax | Market value (5% growth) | Tax if bought then | Difference in value |
|---|---|---|---|---|---|
| Year 1 | $2,563,759 | $29,483 | $2,563,759 | $29,483 | $0 |
| Year 2 | $2,615,034 | $30,073 | $2,691,947 | $30,957 | $76,913 |
| Year 3 | $2,667,335 | $30,674 | $2,826,544 | $32,505 | $159,209 |
| Year 5 | $2,775,095 | $31,914 | $3,116,265 | $35,837 | $341,170 |
| Year 10 | $3,063,929 | $35,235 | $3,977,232 | $45,738 | $913,302 |
Expect about $29,483 in the first year ($2,457 monthly) on $2,563,759. By year 10 the capped bill would be about $35,235, against about $45,738 for a new buyer at the then market value. Mello-Roos, exemptions and temporary reductions would change these figures.
Coronado’s own chapter: the Mills Act
Coronado adds one local program to the state rules. Its Mills Act program lets owners of designated historic resources in residential zones receive a property tax reduction in exchange for preserving the home, under 10-year contracts that stay with the property. The city reports more than 150 Coronado properties benefit.
Common questions
Why is the cap 2%?
Proposition 13 limits the yearly increase in assessed value to the rate of inflation or 2%, whichever is less.
Does a renovation reassess the home?
New construction, including a substantial addition, is generally reassessed at its value when completed. Ask the assessor how a specific project would be treated.
Where can I read the laws?
The state Board of Equalization publishes the property tax rules, and the county assessor explains how they are applied locally.
Keep exploring
- Coronado history — A timeline of the island.
- Homes through the decades — Architecture, eras and values.
- Weekly market report — Values, cycles and this week’s gauge.
- Property tax estimator — Try your own numbers.
Talk to a lender. Rates, loan programs and approvals come from lenders, not from websites or real estate agents. Talk to your own mortgage broker, or use our preferred lender, Rodrigo Ballon with CrossCountry Mortgage, at 858-735-0255. You are always free to choose any lender you like, and you can verify any lender’s license at nmlsconsumeraccess.org.
Sources
- Public Policy Institute of California: Proposition 13, 40 years later
- San Diego County Assessor: real property assessment
- San Diego County Assessor: Mello-Roos
- California State Board of Equalization: Proposition 19
- City of Coronado: Historic Preservation and the Mills Act
General information for orientation, not legal, tax, financial or appraisal advice. Details change; confirm anything that matters with the official source, your lender and your agent.