LOS ANGELES (CBSLA) – Los Angeles County brought in a record $1.6 trillion in property tax assessments this year thanks to a robust sales market and new construction.
The 2019 tax roll was $94.41 billion larger than the 2018 roll, an increase of 6.25 percent, the L.A. County Assessor’s Office announced Monday.
“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,” L.A. County Assessor Jeff Prang said in a statement.
According to Prang, the growth was primarily due to three reasons.
About half the increase, $48 billion, was due to the reassessment of properties that were sold this year. Under California’s Proposition 13, property values can only be reassessed at market value when they are sold.
About $28 billion in growth was due to the Proposition 13’s Consumer Price Index (CPI) adjustment of 2 percent. Under that law, as long as a property is not sold, its assessed value cannot increase by more than 2 percent annually.
New construction accounted for about $11 billion in growth. The largest single reassessment of any property was for the new Los Angeles Stadium in Inglewood, which will serve as the future home of the NFL’s Rams and Chargers. The stadium accounted for a whopping $1.95 billion on the tax roll, Prang reported.
According to Prang, city and county programs will see an additional $1 billion this year as a result of the spike in the assessment roll.
“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,” Prang said.
The assessment roll is made up of 2.57 million properties. It includes 1.87 million homes, 249,000 apartment complexes, 248,000 commercial and industrial properties and 200,000 businesses.