Property Taxes Are Bright Spot for State Income

Long blamed for not doing enough to fund schools, California homeowners are one of the few revenue sources that can be counted on in this lean year, with property taxes -- due in part today -- projected to bring the state and localities at least 7% more than last year.

In some parts of Southern California, where the housing market has been robust, county tax collectors expect to reap more than the state average.

In Orange County, an expected $2.9 billion in property tax revenue is nearly $250 million -- or 9% -- more than the previous year, Treasurer-Tax Collector John M.W. Moorlach said.

He said the difference stems from “increased property values and 10,000 new parcels -- new homes and other parcels subdivided from existing larger parcels.”

Ventura County tax rolls are expected to jump 10% this year, with Los Angeles County posting an increase of more than 6% for the fourth straight year.

As California officials grapple with a state budget shortfall topping $21 billion, taxes on income, capital gains, sales and a host of other goods and services are projected to be sharply down or flat.

Only the boost in property values is keeping the state situation “from being a disaster,” Ventura County Assessor Dan Goodwin said. “[It’s] the one area that’s sustaining growth.”

Today is the deadline for property owners to pay the first half of their 2002-2003 taxes. The second installment is due April 10.

Statewide, property taxes are projected to top $29 billion this year, based on a 7.3% increase in the assessed values on which the taxes are largely calculated, according to the State Board of Equalization.

Property taxes amount to 1% of a property’s value in the year it was purchased. Added in locally are service charges from agencies and any debts levied to pay for bonds.

Under Proposition 13, California’s landmark taxpayer reform passed in 1978, unless a property is sold, transferred or significantly upgraded, the owner’s tax bill can increase no more than 2% a year. There are various quirks in the tax law, such as an allowance for homeowners over 55 to retain their older, lower tax assessment if they sell their home and move into a less expensive one.

Before Proposition 13, localities could change tax rates from year to year, based on their budgetary needs. Just as it was lauded for making property tax bills more predictable, Proposition 13 has been criticized for benefiting land-rich Californians at the expense of public school students.

On Monday, taxpayers rushed to postmark their checks, pay by computer or phone, or line up at county tax collectors’ counters throughout the region.

To sweeten the prospect of paying taxes, Ventura County’s treasurer-tax collector, Larry Matheney, handed out Hershey’s chocolates to property owners as they made out their checks to him.

The strong housing market in Ventura County has made for a tax roll $66 million richer than last year -- it’s now $746 million.

Los Angeles County’s property assessment roll grew by more than 6% for the fourth straight year, by $39.8 billion, county Assessor Rick Auerbach said. In Orange County, as in the rest of the state, the tax collector warned not to miss today’s deadline.

“If you pay late -- by even one day -- you are assessed a 10% late-payment penalty. It’s very hard to get that waived -- almost impossible,” Moorlach said. Payments must be postmarked with today’s date. They also can be taken to the county Treasurer-Tax Collector’s Office at 12 Civic Center Plaza, Santa Ana, where a drop-off box is available after hours. Residents also can pay online at https://tax.ocgov.com. Credit card payments also can be made online or by telephone at (714) 834-3411.

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Times staff writer Kenneth Reich contributed to this report.