The vast majority of property tax receipts are paid to the state.
The rest goes to local governments and individuals, according to the Tax Foundation.
However, the state has one catch.
It can only deduct some of the tax collected, as it does not include property that has been used or occupied for more than five years.
That means that many people who lose or damage property that they purchased and never use are left with huge bills.
The tax agency said it has started an effort to help those who are facing an unexpected tax bill.
The California Property Tax Relief Fund, or CPTRF, is an initiative launched in 2011 to help property owners and property managers navigate the tax laws.
It is designed to help taxpayers avoid paying the full amount due when they claim a tax refund, according the Tax Policy Center, a nonpartisan, nonprofit think tank.
CPTRFs partner groups include the California State Bar Association, California Association of Business and Industry, California Insurance Companies Association, San Francisco Taxpayers Association, Southern California Taxpayers Foundation, San Diego Association of Realtors and the San Francisco Association of Real Estate Professionals.
The CPTRFF is working with the Department of Finance and Tax Services to provide an online tool that lets property owners file their returns online to find out how much they are owed, according a CPTR statement.
It will also provide a tool that allows property owners to request that their tax bill be reduced if their tax debt is more than 10 percent of their assessed value.
The group hopes to provide the tools to property owners who are in need of help with their tax bills.