One of the biggest surprises for first-time homebuyers in the U.S. is the property tax.

Especially when looking at the mortgage statement, you might wonder, "Why is it so high?" But upon closer inspection, you'll find that a significant portion goes towards the school district's costs.

Most areas in Long Beach fall under the Long Beach Unified School District (LBUSD). This district is one of the largest in California, serving over 60,000 students and operating more than 80 schools across elementary, middle, and high school levels. With so many schools, the operational costs are substantial, and one source of funding is the property taxes paid by residents.

California's property tax system differs slightly from other states. Thanks to Proposition 13, passed by voter referendum in 1978, the basic property tax rate is capped at 1% of the assessed value. Additionally, the assessed value is based on the purchase price of the home and can only increase by a maximum of 2% each year.

This means that for those who bought their homes 20 to 30 years ago, even if home values have doubled or tripled, their property taxes may not have increased as much as expected. Conversely, those who recently purchased homes will start being taxed at prices closer to current market values, making their property tax burden feel significantly heavier.

However, that's not all. In addition to the basic 1%, there are costs associated with school bonds issued for building or remodeling school facilities. The Long Beach Unified School District has also secured funding for school facility improvements through several local votes, and these costs are separately included in the property tax bill.

As a result, it's rare for homeowners to pay only the basic 1%. Various assessments often lead to total property taxes typically ranging from 1.1% to 1.3% of the assessed value.

For example, if the assessed value of a home is $600,000, the basic property tax would be around $6,000 per year. With the addition of school bonds and various local assessments, it's common for the total to be around $7,000 annually. When calculated monthly, this translates to about $600 in property taxes. Most of the time, mortgage companies collect this amount monthly through an escrow account and pay it on behalf of the homeowner.

Initially, you might think, "Why are taxes so high?" However, when you consider that this money is used to improve school facilities and provide students with a better learning environment, it starts to make more sense.

The saying that good school districts drive home values isn't just a cliché. The taxes invested in education often have a significant impact on neighborhood value and real estate prices.

So, if you're planning to buy a home in Long Beach, be sure to consider not just the home price but also the property taxes. Just like your monthly mortgage, property taxes can also become a significant long-term burden.