Property tax revenues up, but short of blistering recent sales numbers
While recent reports from the real estate industry indicate that property values are skyrocketing, in many areas across the county posting double digit year-over-year increases, San Diego County Assessor Ernest Dronenberg’s office reported more modest numbers for the year last week, citing an overall change in value of just over three percent, resulting in a rise in assessed property value throughout the county of $13.6 billion, to a total $408.8 billion.
After considering various deductions such as homeowner and charitable exemptions, the county tax base stands at about $393 billion, resulting in an expected haul of about $3.9 billion based on a one percent tax rate, though various bond measures and fees drive the property tax rate closer to an estimated 1.25 percent for most area homeowners, before considering any Mello Roos or other special assessments.
While many homeowners successfully sought tax base reductions during the recent real estate crash, they’re now being hit once again with the maximum two percent increases in tax basis as allowed under 1978’s Prop 13 property tax measure.
Those adjustments to existing homeowners’ tax rates contributed to about $5 billion in additional value. Another $5.9 billion was added through re-assessments due to property sales, and the remaining $2.4 billion came from new construction, a sign that the long-dormant building industry is once again gaining steam.