For the sake of making things easy let's say the home you purchase is worth $500k, in the state of California your yearly property taxes are usually a little more than 1% of the value of your house. Therefore, you'll be paying about $6k a year in property taxes. Now, you can either pay this twice a year or you can pay this in monthly installments.
In Pasadena a handful of homes, especially those in Bungalow Heaven, fall under the Mills Act. The Mills Act can save a homeowner up to 40-60% on their property taxes and at $6k a year the savings from the Mills Act can really add up. I'm trying to convince S to up our budget cap by $30-$40k if we purchase a home that qualifies for the Mills Act because we would end up saving in the long run :) Not sure if he's falling for it but at least I'm doing my homework!
I recently found this home that just hit the market a few days ago that's under the Mills Act. It's a pretty amazing property.