O.C. property values drop for the first time since 1994-95

Orange County’s total property tax values for 2009-10 are down 1.23%, or $5.2 billion -- the county’s first decrease since the bankruptcy years of 1994 and 1995, according to the annual report released by the assessor’s office this month.

The decrease in value translates to at least $520 million less in public money to fund local agencies, said County Assessor Webster J. Guillory.

The total taxable value of $418.8 billion, assessed as of Jan. 1, 2009, includes more than 1 million units of property, Guillory said. More than 200,000 are now assessed below their Proposition 13 taxable values, he said.

Some cities -- including Irvine, Newport Beach and Laguna Beach -- have slightly increased their assessed values, mainly because development; but in general, resales, new construction and development are at their lowest level in 20 years, Guillory said.

 the local budget equation. Property tax is the biggest contri“The big question for everyone is, 'OK, now that we have the bad news for this year, what’s going to be the news for next year?' ” he said. “People are already starting to look ahead, and with the job market what it is, income tax, sales tax and property tax all trending down.  Those three make up the largest three contributors to those numbers.”

Guillory said next year’s property tax trend (2010-11) will probably become more evident in the next three to four months.

-- Tami Abdollah