LA County property values hit a record $1.6 trillion; most property owners will see a 2% tax hike – Daily News

on Jul17
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A robust real estate market and new construction, including the partially completed NFL Rams/Chargers stadium in Inglewood, boosted Los Angeles County property values to a record $1.6 trillion, according to Assessor Jeff Prang.

The stadium provided the biggest single addition to the 2019 tax roll with an assessed property value of $1.95 billion. The Banc of California Stadium in L.A. added another $200 million.

The county’s tax roll grew by $94.4 billion, or 6.25%, over the prior year. In addition to the values of the county’s 2.38 million real estate parcels, the total includes $84.8 billion in business property, which rose by $3.9 billion from 2018, a record in itself. That category takes in everything from boats and aircraft to machinery and equipment.

Economist Robert Kleinhenz, executive director of research for Beacon Economics, said the report bodes well for the county’s economy.

“It’s noteworthy that it occurred when interest rates were increasing and sales activity was falling,” he said. “Home prices increased last year but were not record-setting, and prices were actually falling in some areas. Home sales have also been underperforming, but many homeowners who haven’t chosen to move have improved their properties.”

A benefit to vital public services

Taxes from increased property values will help fund a variety of services, according to Prang.

“From education, healthcare and mental health services, to public safety, transportation and alleviating the homeless crisis, our schools, cities and county programs will have approximately an additional $1 billion for vital local public services,” Prang said in a statement.

The report also shows that owners of 1,328 properties that were severely damaged or destroyed by the Woolsey fire received tax relief totaling $684.8 million in property value, which will help them rebuild.

Prang noted that the 6.25% growth rate in L.A. County property values reflects a county average, owing to the wide variation in property values from one community to another. Nearly 9 out of 10 property owners, he said, will see a 2% hike prescribed by Proposition 13 on their annual property tax bills.

Another 10% of properties were subject to more than the 2% hike, according to Prang.

More than half of the county’s growth in property values came from property sales, which added $48.34 billion to the roll compared with 2018. The Consumer Price Index adjustment allowed under Proposition 13 added $28.74 billion and new construction added another $11.09 billion.

Los Angeles leads the way

Los Angeles posted the highest total assessed value ($652.9 billion) among cities in the county. L.A. was followed by Long Beach ($60.2 billion), Santa Monica ($39.5 billion) and Beverly Hills ($36.6 billion).

Inglewood showed the biggest year-over-year percentage growth in property values (25.7%). Vernon was next (13.2%), followed by West Hollywood (11.6%) and Santa Fe Springs (9.3%).

In terms of the sheer dollar increase in assessed property values, Los Angeles led with $41.7 billion. Long Beach was second with $3.1 billion, Santa Clarita was $2.5 billion and Inglewood was $2.4 billion.

The assessment roll’s 2.57 million properties include 1.8 million homes, nearly 250,000 apartment complexes, 248,109 commercial and industrial properties and more than 200,000 businesses.

“This is good sign that the economy performed last year as we expected,” Kleinhenz said. “We continue to see it doing well in 2019.”

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