Value of Assessed Property Rose 7.5% in 1999, Highest in Years

Fueled by a robust economy and strong real estate demand, the assessed value of property in Ventura County jumped an estimated 7.5% in 1999, the largest one-year increase since the passage of Proposition 13 in 1978.

A record $55-billion worth of private property in the county will generate about $99 million in taxes for local government at a time when the county is trying to regain its financial footing, said Assessor Dan Goodwin. That reflects a $6.4-million increase beyond 1998 receipts.

Goodwin credited new construction, business expansion and an increasing number of real estate transactions across the region for the uptick in assessed value.

Earlier reports showed that home sales in the county increased 7% in 1999, while median home prices were up 8.7% last year.

Large industrial complexes are under construction in Oxnard and Camarillo, as is the large Dos Vientos residential development in Thousand Oaks, he said.

“And because of the strong economy, we have businesses growing and new businesses starting,” Goodwin said. The county assesses property taxes on business equipment and fixtures in addition to real estate.

The higher assessments continue a trend from the mid-1990s, when the California economy began to rebound from the last recession. In 1998, assessments in the county were up nearly 6.3% over 1997 levels.

Most of the revenue generated by property taxes, about 55%, goes to the state for schools, Goodwin said. The county is reimbursed roughly 18%; cities and special districts take the remainder.

Goodwin cautioned that the increase in assessed value will mean some people will face higher property tax bills, particularly those who purchased real estate early in the past decade.

After the real estate market nose dived in the first half of the 1990s, thousands of properties were reassessed at a lower market value, which in many cases set those tax bills substantially below what they could have been under Proposition 13. Now that the market has rebounded, Goodwin said, those homeowners can expect higher tax bills next fall--perhaps as much as 10% higher.

“As the equity increases, you will be assessed for that,” he said.

Mark Schniepp, director of California Economic Forecast, a Santa Barbara-based think tank, said municipal governments across the state are enjoying record revenues from the increased assessments.

“These windfall gains are due to the vibrancy of the economy,” Schniepp said. “If there was anything I could tell people, it is to expect significantly higher tax bills.

“Don’t keep spending the way you are. Save some money for your property taxes.”

Schniepp said local governments should take advantage of the increased property tax revenues and develop contingency funds in the event the economy takes a downturn.

Goodwin said he announced his assessment projections earlier than usual to assist interim chief county administrator Harry Hufford as he prepares to draft a $1-billion budget for the next fiscal year.

Hufford is also working to reduce a projected $5-million deficit that is largely the result of a multimillion-dollar settlement of a federal lawsuit over the county’s health-care billing system, and from higher-than-anticipated costs in running the county’s public hospital and providing for the mentally ill.

“This information can make a significant difference in helping him determine the county’s discretionary revenue,” said Goodwin. “If he over-forecasts, he may have a problem with expectations that can’t be met.

“If it’s under-forecast, he may have cut some things that may have been saved. I’d rather not have him in the dark.”

Taxpayer advocate Jere Robings, a frequent critic of the county’s budgetary decisions, said he welcomed the news of the projected increases in assessed value.

“This brings in more money to county coffers,” he said. “The county goes through cycles like anyone else. This is definitely a positive.”