Santa Clara County Assessor Larry Stone reported earlier today that the county assessment roll grew by nearly $26 billion over the prior year, the second-highest dollar increase in the county’s history. “The Silicon Valley economy has been roaring back, leading the nation out of the Great Recession. Declining unemployment, a dramatic reduction in office and apartment vacancies, a surge in the NASDAQ, and housing values commanding multiple offers and sales above the asking price all indicate a very robust recovery. This is fabulous news for property owners as well as the schools and local public agencies that rely on property tax revenue,” said Stone.
Over the next few days, 478,000 property owners will receive their annual letter from Assessor Stone notifying them of their property’s 2013-14 assessed value, which serves as the basis for the property tax bills mailed in the fall. The net assessed value of all real and business personal property is a record $334.6 billion. “Santa Clara County is one of only ten counties in California to provide this early notice to all property owners. Most property owners in California learn of their assessed value for the first time when they receive their property tax bill,” said Stone.
The annual growth in the assessment roll is due to a number of factors including changes in ownership, exemptions, new construction, the California Consumer Price Index (CCPI), and assessment increases for properties that received a temporary assessed value reduction (Proposition 8) following the collapse of residential property values during the recession. The assessment roll also contains the value of business personal property, including machinery, equipment, computers and fixtures that rose 6.38 percent to $33.6 billion, the second-largest in California.
The assessment roll is a snapshot, as of the valuation/lien date (January 1, 2013), of the assessed value of all real and business personal property in Santa Clara County. The assessed value of all real property (land and buildings) grew by 8.36 percent. “This increase is consistent with the rather sudden turnaround in Silicon Valley’s economy. During the past two years, rents for apartments jumped as much as 30 percent, and 8,000 new apartment units are under construction or recently completed in San Jose alone, with another 5,000 units in the South Bay. Similarly, Class A office and R&D rents have increased nearly 20 percent. Sales of residential homes, both single family and condominiums are approaching pre-recession levels.