Shiane Daima Jacocks
The County Assessor/Clerk-Recorder Peter Aldana recently announced that, concurrent with the fiscal year that began July 1, property owners will benefit from a five percent increase in home prices.
According to Aldana, market growth in all real estate sectors drove up the assessment roll by more than five percent to $269 billion for the current fiscal year.
Property values in all sectors of the market have rebounded steadily over the last few years. Home prices rose five percent in the area, as the median price of a home went from $330,000 in December 2015 to $346,500 in December 2016, according to CoreLogic, a real estate information services firm.
“Rising property values are good news for residents. Property owners build equity, and local government will have the needed funds for the educational, recreational, and safety services that make Riverside County a great place to live and work,” said Aldana.
Occupancy and rent have risen as well in the commercial office market, while new industrial and apartment construction grew by more than eight percent.
Despite increases such as these, however, the average property owner will not see a comparable rise in property taxes because the assessment enrolls more properties at their Proposition 13 value.
Proposition 13, the People's Initiative to Limit Property Taxation, was amended to California’s Constitution in 1978. It prevents property-taxes from increasing more than two percent annually.
By July 1, state law requires the county assessor to complete the property roll and enroll the lower values as mandated under Proposition 13, adjusted for inflation or current market value. Another measure, Proposition 8, also passed by California voters in 1978, allows the assessor to enroll a property’s market value when it falls below the Proposition 13 value.
This fiscal year, the assessor reduced more than 101,000 such properties with single-family homes. Because of the improved economy, that number fell from 120,000 last year. Aldana noted that as a property’s market value recovers, the assessor must restore previous reductions. When property-tax bills are distributed in October, property owners will be notified of any changes in value made pursuant to Proposition 8.