Home prices have skyrocketed. Why does he have no property tax revenue? – NBC 7 San Diego

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Although the San Diego County Assessor’s Office reports a huge increase in local property tax revenue, the numbers don’t seem to match up with soaring San Diego home prices. The reasons why, local officials say, boil down to California Proposition 13 and the pandemic.

The county’s assessed value of all taxable properties recently hit a record high of $ 627.25 billion this year, an increase of 3.72% – or $ 22.5 billion – from last year, San Diego County Assessor Ernest J. Dronenburg Jr. announced Tuesday.

At odds with that increase, however, is the fact that the median price of a single-family home in San Diego County rose 3% just in May of this year – and year over year, the price was 30% higher. high, rising to $ 851,000 from $ 655,000 in May of last year.

Dronenburg certified and closed on Tuesday the 2021 property assessment roll of all taxable properties, which is based on assessed values ​​as of January 1. The reductions for those affected by government COVID-19 restrictions have had some effect on the overall property tax assessment.

“The 2021 property tax roll reflects the great work my team has done with our key partners, proactively reaching out to small businesses and landowners affected by COVID-19 to help them benefit from 1.1 billion dollars in taxable value reduction for property tax relief, ”Dronenburg mentioned.

The tax roll in San Diego consisted of 1,006,991 real estate parcels, 54,148 corporate personal property accounts, 13,312 boats and 1,550 airplanes. The total net assessed value of the roll is $ 602.06 billion after deducting $ 25.19 billion for a record reduction resulting in over $ 250 million in property tax savings for homeowners, veterans disabled people and charitable organizations.

The Rater Outreach Program qualified 471,161 homeowners for over $ 32 million in savings through the homeowner exemption; 11,983 San Diego County Disabled Veterans for more than $ 17 million in savings through the Disabled Veterans Exemption; and 5,148 welfare institutions, such as schools, churches, museums and nonprofit organizations for more than $ 201 million in property tax savings.

The most important reason, of course, why property taxes do not match year-over-year increases in the median home price is California Proposition 13, which limited property tax payments based on the estimated value of a house.

“… due to Proposition 13, passed by voters in 1978, there was a limitation on property tax increases up to 2% of the assessment (assessed value – not the market rate)” San Diego County taxpayer attorney Jordan Marks told NBC. 7 by e-mail. In addition, people voted to measure the potential increase in the California Consumer Price Index (based on cost factors like eggs, gas California Consumer Price Index 2021-22). This rate was just over 1% and reflected the slowdown in the COVID economy. “

Additionally, Marks said home values ​​only increased an average of 10% in fiscal year 2020-21, which contradicts the 30% year-over-year increase. other of the median price of a house cited by the California Association of Realtors. May home values ​​report.

According to Dronenberg, the 2021 property tax roll “highlights that Proposition 13 has delivered on its main promises – first, that taxpayers are protected from unaffordable property taxes due to soaring real estate values ​​that could cause them to lose their homes. . Second, for the ninth year in a row, it provided a reliable and increased source of government funding for key services like schools and first responders, protecting them from the current COVID-19 pandemic. “

Lemon Grove achieved the highest estimated value growth rate at 6.08%, while National City recorded the lowest growth rate at 2.60%. National City posted the highest level in the county last year, growing 7.10%.

Qualcomm is the first San Diego County property taxpayer to have one of their properties listed for more than $ 1 billion in tax rolls.

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