Smiles at the Assessor’s Office

Little noticed this month was the Los Angeles County assessor’s report that overall property values in the county rose for the first time in two years. Whew, relief may finally be in sight for homeowners suffering from depressed property values and for the county, which could use the additional property tax revenues generated by the higher values.

The $3.8-billion increase over the previous year in the county’s 1997-98 assessment roll, for a total roll of $488 billion, follows a $12.8-billion decline that had developed since fiscal 1994-95. Economists see the uptick as a sign that consumers are feeling confident enough with the economic rebound to invest in a home. Still, not all areas are enjoying higher property values; real estate in the Palmdale/Lancaster north county area, for example, remains depressed. At the positive end of the list are Manhattan Beach and La Canada Flintridge, both with increases of more than 4%.

The county’s average home price rose to $194,600 from $193,700 in 1996, the first gain since 1991, when the average was $238,600.

The county would be doing even better if many property owners had not applied for and got lower assessments on their homes and other buildings. Transfers of property and new construction accounted for nearly half of the higher assessment roll. Most of the rest came from adjustment for inflation--2% to older assessments. So while the county will enjoy this bounty, many a homeowner will feel the pinch of a higher tax bill.

The higher assessment roll will mean $38 million in additional property tax revenues, shared by many jurisdictions from the MTA to various cities. For the cash-strapped county, the good news is that it can look forward to a share amounting to $8.7 million.