Rise in Home Values Boosts Tax Coffers

A robust local housing market helped increase property assessments in Los Angeles County by nearly $50 billion this year, the county assessor’s office said Wednesday.

Low interest rates, short supply and a strong demand for single family homes contributed to higher home prices, resulting in a 7.4% jump in assessed values, according to a report released by the assessor’s office. Property assessments totaled $725.7 billion for 2003, compared with $675.9 billion in 2002, the report said.

That increase means the county, which levies taxes equivalent to 1% of the assessed property value, will collect an additional $500 million in property taxes this year.

Most of the increase in property values had been predicted by the assessor’s office in May. But with the final tally exceeding projections by $2 billion, cash-strapped local governments could enjoy small windfalls.

Supervisor Zev Yaroslavsky estimated that after exemptions, the county could receive roughly $20 million in tax revenue it had not anticipated.

“It’s better than a poke in the eye, but it’s not earth-shaking,” Yaroslavsky said.

The property assessment roll reflects the value of 2.6 million properties in the county as of Jan. 1. This is the fifth straight year that those values have increased by at least 6%.

All told, the county will collect about $7 billion in property taxes. That money will be divided among the county’s general fund, cities, schools and special districts.

The biggest jump in valuations occurred in Palmdale, where assessed values rose 11.4%; Azusa, where the increase was 10.6%; and Malibu, which saw a 10.3% rise.

Assessed values also rose by more than 9% in Calabasas, Claremont, Duarte, Hawaiian Gardens, Hawthorne, Irwindale, Lancaster, Long Beach, Pasadena, Santa Clarita and Temple City. Of the county’s 88 cities and unincorporated areas, the only one to see a decrease in assessed values was El Segundo, which had a reduction of 2.8%.