L.A. County property tax rolls decline for first time in 13 years

 The other shoe has dropped. The property value hits to home owners has now dragged Los Angeles County tax collections into negative territory. After enjoying average annual growth in property tax rolls of 7% since 1996, declining home value assessments have brought L.A. County tax rolls down by about 1% from a year ago. The full Times story on property values is here.

The biggest property value declines -- roughly 15% -- were in Lancaster and Palmdale. As the Times reported earlier, some neighborhoods in those cities now have homes selling at nominal prices below 1989 levels. Yes, 1989-1990 was a bubble period, as some have pointed out, but it's still remarkable for prices to sink below levels of 20 years ago, without even adjusting for inflation. It's happened in relatively few areas.

L.A. County property value declines in La Puente, Hawaiian Gardens and Norwalk, the most severe outside the Antelope Valley, were in the 7% to 8% range.

-- Peter Y. Hong

Comments

[Laker]

That is big new, as the county like most governments has enjoyed spending the extra windfall of 7% every year in increasing wages for the employees, bonuses, and other perks. Now lets see how they can reverse that as they were sure not saving the extra "profits".

What astonishing here is the fact that houses that were bought prior to 2001-2 in most areas that sell today (transfer ownership) will get reassessed at higher values today to reflect higher appreciation automatic adjustment of 2% (PROP 13). So even as we see houses purchase 2004- 2006 get foreclosed in mass, and then resold to new buyers at 2002-2003 prices, still should generate more property tax than the tax would be had that house was under the previous/previous owner (prior to the 2005-6 purchase).
Mark my words, I think we would see a prop 13 modification and PROP 13 would be canceled at least on the commercial side.
No other choice.

[Martin]

Let me do some simple math. If property values in Los Angeles County declined one billon dollars -- and taxes are assessed about about 1.25%, doesn't that mean the county has lost in annual revenue about twelve milliion dollars?

Comparatively speaking, this amount should not be creating the biggest post-Depression fiscal crisis in our state's and region's history. A loss of twelve millions dollars suggests a little belt tightening (when comparied to the overall budget) is necessary. What's wrong with this picture?

[Don]

Proof read your articles!!
Quote from this article "What astonishing here is the fact that houses....." that pretty bad don't you think???