Property taxes in San Mateo County to increase at 1.525% less than the maximum of 2% for a third year in a row
Contact: Mark Church, Assessor-County
Phone: 650.363.4988 Fax: 650.363.1903 E-mail: email@example.com
Alternate: Terry Flinn, Special Assistant
to the Assessor
Phone: 650.599.1271 E-mail: firstname.lastname@example.org
Alternate: Jim Irizarry, Assistant
Phone: 650.636.1808 Fax: 650.363.1903 E-mail: email@example.com
(Redwood City, CA) San Mateo County Assessor-County Clerk-Recorder Mark Church announced today that the annual inflation factor used to calculate factored base-year assessments for property within the county will be 1.525% based on the California Consumer Price Index.
“This is once again welcome news for San Mateo County property owners who will receive a tax break in their 2016 assessments,” said Mark Church. “This year’s rate is below the maximum allowable rate of 2%. This is the third year in a row that the CPI has been less than 2%.”
While this decrease is good news for homeowners, the reduction in the annual inflation factor may reduce the anticipated property tax base that supports the county, cities, school districts and special districts throughout the county. All of these entities may have to adjust their budget estimates accordingly for FY 2016-17.
“On the positive side, San Mateo County’s vibrant economy continues to grow at a strong pace increasing roll value,” said Church. “This economic growth will in all likelihood compensate for any reductions in roll value caused by the low inflation factor.”
The California State Board of Equalization (BOE) is the statewide regulatory agency that announces the annual inflation factor in December of each year, in order for County Assessors to prepare their assessment rolls for the following year. The annual inflation factor is based on the California Consumer Price Index (CCPI) for the period from October of the prior fiscal year to October of the current fiscal year. The California Department of Industrial Relations is the state agency responsible for determining the annual CCPI factor.
Proposition 13, California’s landmark legislation governing our property tax system, set the assessed value of all real property in California at the 1975 value level. This value is called the “1975 Base Year Value.” Whenever there is a change in ownership or newly constructed real property, a new ‘Base Year Value” is established. Once “Base Year Value” is established, Proposition 13 limits subsequent annual changes to the property’s value, to no more than the annual change in the California Consumer Price Index (CCPI) with a cap of no more than 2%. This value is called the “Factored Base Year Value.” From a historical perspective, the annual increases to factored base year values have been 2% in all but nine (9) of the last 40 years since the passage of Proposition 13 in 1975.
Anyone interested in obtaining additional information on this year’s CCPI factor can go directly to our website www.smcare.org or call the Assessor’s Office at 650.363.4500 for additional information.
The press release is displayed in its original format. San Mateo County Assessor-County Clerk-Recorder & Elections website now resides at www.smcacre.org