Bull Market Spirals City’s Assessed Value to More Than $600 Billion
LA WATCHDOG--We have the bad news, the good news, and the even better news.
The bad news is that housing prices are increasing beyond the reach of many Angelenos.
The good news is that homeowners are benefitting from higher valuations for their homes.
The even better news, as far as the City Hall is concerned, is that revenues from property taxes are soaring.
According to the County Assessor’s recent report, the value of the City’s 788,612 parcels increased to $611 billion, an astounding 7.6%, $43 billion bump from the prior year’s valuation of $568 billion.
Based in the 1% tax rate as mandated by Proposition 13, Angelenos will pay $6.1 billion in real estate taxes, a $430 million increase from the prior year.
Of this amount, about 25%, or $1.5 billion, will be allocated to the City while the bulk of the remaining 75% will be directed to LAUSD (Los Angeles Unified School District) and the County of Los Angeles.
It is not surprising, then, that City Hall is approving a massive number of luxury, high rise developments throughout the City, the hell with the impact on our residential neighborhoods, on the stock of affordable housing, and on our already congested streets.
Of course, this building spree is helped by generous campaign contributions from real estate developers, a situation that the Ethics Commission and the City Council refuse to address despite previous promises made in January 2017 to combat Measure S, the Neighborhood Integrity Initiative, that was on the March 2017 ballot.
Over the last five years, the City’s Grand List has increased by almost 50%, from $441 billion to the previously mentioned $611 billion, a compounded growth rate of a very healthy 7% a year.
This $170 billion increase in the assessed value resulted in an additional $425 million of tax revenue for the City over the last five years.
Despite this influx of cash, along with more than $500 million from other selected taxes over the last five years, the City is still unable to balance its budget or eliminate the Structural Deficit.
Eric, what the hell is going on? Is deficit spending part of your Presidential platform?
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[Note: Angelenos will also be paying additional taxes over and above the 1% rate. This will increase our property tax bill by almost 25%. Voted Indebtedness for LAUSD, the Community Colleges, the City’s General Obligation Bonds, and the Metropolitan Water District is responsible for 20% of the increase. Direct Assessments consisting of eight parcel taxes account for about 5% of the increase. Overall, these add-ons are estimated to total around $600 million.]
-cw
