Property tax revenue is set to increase throughout the state, as county assessors are reporting significant increases in the assessed values of properties subject to locally assessed property tax.
In the 20 counties whose assessors had made their 2024-25 assessment roll data available by July 12, the average increase in the assessment roll is 5.72 percent (this includes the preliminary data from 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 4.75 percent larger than last year’s).
The assessment roll growth will translate to more property tax for local government, school districts and special districts. Property tax revenue has increased every year in most counties for more than 12 years, after a brief period during the Great Recession (2009-10 to 2010-11) in which assessed values fell in some areas. Napa County Assessor John Tuteur noted that his county’s assessment roll hasn’t shrunk since 1978, when the passage of Proposition 13 reformed California’s property tax system.
San Diego County Assessor Jordan Marks reported that his county set a new record with $768 billion in assessed value, reflecting a 5.58 percent increase ($40.6 billion) over last year. This is the 12th straight year the county’s assessed values increased.
“Thanks to Proposition 13, no homeowner should lose their home due to unaffordable property taxes from the recent skyrocketing home prices,” Marks said, noting that Proposition 13 caps annual increases at 2 percent absent a change in ownership or new construction. “At the same time, governments will receive record high reliable funding for the 12th straight year.”
In a news release, Santa Clara County Assessor Larry Stone’s office said this year’s roll, which increased 5.39 percent, “reflects the complex and unpredictable status of both the region’s residential and commercial property markets.”
“Residential properties experienced a decline in value in 2023, rebounded in 2024, and are now the highest in the country,” Stone’s release noted. “The number of residential change of ownership transactions continued to decline, but higher values countered the negative impact. Commercial property sales are volatile and new construction of commercial properties came to a halt. However, the global attraction of the region remains strong. The full impact of these factors on the assessment roll is expected to be clearer in future years.”
Rising vacancy rates, declining rental rates, the absence of big leasing deals, and the continuation of hybrid and remote working have driven the office vacancy rate in Silicon Valley to more than 20 percent, the assessor said.
“Ninety-eight percent of the $115.2 billion of assessed value currently under appeal involves commercial property,” Stone said. “We expect to receive a greater number of commercial property assessment appeals filed this year, which may result in assessment roll corrections reducing the value of the assessment roll.”
Alameda County Assessor Phong La said assessment appeals are on the rise in his county, too, “particularly for commercial offices, shopping malls, and some apartment buildings.”
The value of the roll has increased in each of the 20 counties that have reported so far, from a low of 4.17 percent in Contra Costa County to a high of 10.45 percent in Kings County.
Contra Costa County Assessor Gus Kramer noted that the increase to his county’s local tax base for 2024-25 is more than $11.16 billion, bringing the total net assessment roll to more than $278.83 billion – the highest in the county’s history. The roll consists of 380,681 parcels, an increase of 1,239 from last year.
Sacramento County Assessor Christina Wynn, president of the California Assessors’ Association, noted that the 5.18 percent increase in her county’s roll will translate to a $115 million increase in gross revenue over last year.
Here are the figures from the counties that have reported their assessment roll numbers:
- Alameda, 5.1 percent.
- Contra Costa, 4.17 percent.
- Kings, 10.45 percent.
- Los Angeles, 4.75 percent (projected).
- Marin, 4.27 percent.
- Napa, 4.59 percent.
- Orange, 5.41 percent.
- Placer, 5.98 percent.
- Riverside, 7.11 percent.
- Sacramento, 5.18 percent.
- San Bernardino, 7.55 percent.
- San Diego, 5.58 percent.
- San Mateo, 5.75 percent.
- Santa Clara, 5.39 percent.
- Shasta, 4.86 percent.
- Solano, 5.12 percent.
- Sonoma, 5.22 percent.
- Tulare, 8.5 percent.
- Ventura, 4.34 percent.
- Yolo, 5.16 percent.
Although July 1 marked the official deadline for assessors to complete their rolls, the State Board of Equalization has granted time extensions to many counties – a routine part of the process – and there typically is a delay in the public release of the information in many counties. Traditionally, a more complete picture of the counties’ assessed values is available by the end of July.