Of the 88 cities in Los Angeles County, West Hollywoodhad the third largest growth in property assessments according to a statement issued by the L.A. County Assessor’s Office.
A strong real estate market and new construction lifted overall Los Angeles County property assessments to a record $1.6 trillion in this tax year, the ninth straight year of growth, according to Assessor Jeff Prang. The increase in the 2019 assessment roll was $94.4 billion, a 6.25% increase.
“The strong growth in the local real estate market for the ninth consecutive year will have a positive impact on services for LA County’s 10 million residents,” said Assessor 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.”
According to the statement, the leading indicators for the growth in the local property assessment roll are: a) property sales, which added $48.34 billion to the roll as compared to 2018; b) the CPI (Consumer Price Index) adjustment prescribed by Proposition 13, which added another $28.74 billion; and c) new construction, which added a further $11.09 billion.
Proposition 13, the 1978 property tax reduction initiative, allows properties to be reassessed at their sale price when they change hands. Other properties can be reassessed upward by only 2%. About 10% of properties were subject to more than the 2% boost, Prang said. These across-the- board increases added about $27.7 billion in new value, about 30% of the total increase.
Inglewood’s tax base increased by 25.7%, a jump attributed to the $1.95 billion value attributed to the new Rams/Chargers Stadium, which is partially complete. The next highest increase was in Vernon, which saw a jump of 13.2%, followed by West Hollywood with a 11.6% increase.
Los Angeles had the greatest amount of growth ($41.7 billion), followed by Long Beach ($3.1 billion), Santa Clarita ($2.5 billion) and Inglewood ($2.4 billion).
The cities with the highest assessed values were Los Angeles ($652.9 billion), Long Beach ($60.2 billion), Santa Monica ($39.5 billion) and Beverly Hills ($36.6 billion).
Prang reminded residents that the average growth does not mean property owners will be subject to a corresponding increase on their annual property tax bills.Nearly 9 out of 10 property owners will see only the modest 2% adjustment prescribed by Proposition 13.
Among the benchmarks set by the 2019 roll is the total amount of $620 million in tax savings for seniors, veterans, and charitable organizations.Also, to date, the owners of 1,328 properties that were severely damaged or destroyed by the Woolsey fire have received tax relief totaling $684.8 million in property value, allowing them to rebuild their homes.
The 2019 Assessment Roll comprises 2.57 million real estate parcels and business assessments, including 1,878,470 single-family homes, 249,972 apartment complexes, 248,109 commercial and industrial properties, and more than 200,000 business property assessments.