Property Tax

San Francisco Assessor Reports 4.6 Percent Growth in Assessment Roll, Credits ‘Insulating Effect of Proposition 13’

San Francisco AerialView

Assessed values of property in San Francisco grew to approximately $340 billion for 2023-24, an increase of approximately 4.6 percent from the previous year, Assessor-Recorder Joaquín Torres reported. San Francisco’s recently adopted budget projected a 4 percent increase, so the larger growth represents a windfall of tax revenue for California’s only consolidated city and county.

“Our assessment roll grew by approximately $15 billion this year, providing important stability for the City,” Torres said in a statement. “Despite the economic challenges facing us, our roll continued to grow this year thanks in large part to the diversity of our real estate and the insulating effect of Proposition 13.”

The roll includes approximately 212,200 parcels and 30,450 business assessments and is expected to generate an estimated $4 billion in property tax revenue, Torres said. Of this revenue, approximately 64 percent goes to San Francisco’s general fund, 34 percent to local schools, and 2 percent to public transportation and air quality management.

“Our work ensures vital government funding to meet the City’s most essential needs ranging from public safety to economic recovery, public education to transportation, homelessness to affordable housing and beyond,” Torres said.

The roll includes exemptions totaling more than $21 billion in assessed value.

“These exemptions result in over $247 million in property tax savings for homeowners, disabled veterans, churches, schools, museums, affordable housing projects, and more,” the Assessor’s Office noted.

Approximately 44 percent of the growth in the 2023-24 roll is due to the 2 percent inflation adjustment – the maximum allowed under Proposition 13 – with new construction and changes in property ownership accounting for the remaining 56 percent.

“While the increase we’ve seen for this year is slightly higher than the City’s projections, the Controller is projecting slower roll growth in the next year in part due to the result of the continued impacts of remote work on commercial real estate in San Francisco’s Downtown and an increase in assessment appeals,” the Assessor’s Office stated. “These indicators are top of mind for the Office of the Assessor-Recorder as we prepare for and manage our workload for the next assessment roll.”

Earlier in the year, San Francisco officials were expecting the assessment roll to grow just 2.5 percent, but the projection was revised to 4 percent in March based on the assessor’s working roll values through the end of February.

Two other counties released their roll data during the week ended July 21:

  • Riverside County Assessor Peter Aldana reported 9.4 percent growth in the roll, bringing the total value to $404.2 billion.“Surpassing the $400 billion mark is a historic achievement for Riverside County,” Aldana said. “It signifies the remarkable growth of our county and reflects the confidence individuals, businesses and investors have in our region.

    The roll has increased for 11 consecutive years. During the Great Recession, $38 billion in value was lost, with assessments bottoming out at $204.8 billion in tax year 2012, according to the assessor’s report.

  • Solano County Assessor Glenn Zook reported that the roll value increased 5.3 percent – also the 11th straight year of growth – and reached nearly $70.29 billion.“Real estate market values showed steady growth up to the middle of 2022, when higher interest rates began to slow the pace of sales,” Zook said. “New construction throughout the county continues to add value to the property tax roll as well.”

In the 21 counties whose assessors had made their 2023-24 assessment roll data available by July 21, the average increase in the assessment roll is 6.7 percent. The value of the roll has increased in each of these counties (as well as in Los Angeles County, where a May report from Assessor Jeffrey Prang forecasted that the final roll, expected to be released soon, will be at least 5 percent larger than last year’s). Among these counties, the lowest percentage increase is San Francisco’s 4.6 percent and the highest is 9.7 percent in San Bernardino County.

July 1 was the deadline for assessors to complete their assessment rolls, but information for all 58 counties is not yet available. Many assessors have been granted 30-day deadline extensions by the State Board of Equalization and others have not released the information to the public.