Contact: Mark Church, Assessor-County Clerk-Recorder & Chief Elections Officer
Alternate: Terry Flinn, Special Assistant to the Assessor
Alternate: Jim Irizarry, Assistant Assessor-County Clerk-Recorder
(Redwood City, CA) San Mateo County Assessor-County Clerk-Recorder Mark Church announced today that San Mateo County property owners will receive a lower increase in their Factored Base Year Value assessments for FY 2014-15, resulting from historically low inflation rates. “This is welcome news for San Mateo County property owners,” said Mark Church.
Church went on to state, “While most property owners will receive a tax break, the reduction in the annual inflation factor also reduces the anticipated property tax base that supports the County, all cities, school districts and special districts in San Mateo County. All of these entities will have to adjust their budget estimates accordingly for FY 2014-15.”
The annual inflation factor announced by the California State Board of Equalization (BOE), for the roll year 2014-15 was established at 0.454%. “The 0.454% annual inflation factor is one of the lowest California Consumer Price Index (CCPI) increase reported by the BOE in the last 38 years,” said Church. The reduction in the annual inflation factor will result in an estimated reduction of $1.84 Billion off the original estimated 2% Factored Base Year Value for properties that have not undergone a change in ownership or new construction.
“The good news is the roll value continues to grow due to the strength and diversity of the San Mateo County economy and real estate market,” said Church. Real estate sales, new construction, and Proposition 8 Decline in Value restorations are increasing the roll value at a good pace this year and should compensate for any reductions caused by the low inflation factor,” Church stated. As a result, the 2014-15 secured roll value should increase by 4.77% over the 2013-14 secured roll. The 2013-14 roll value of land and improvements was $149.83 Billion. The 2014-15 roll should come in at an estimated, $156.98 Billion.
As background information, 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 seven (7) of the last 38 years since the passage of Proposition 13 in 1975.
If you are interested in viewing the 2014 -15 roll as it is being prepared, please go online to our Assessment Roll Tracker (ART) to view the impact these valuation changes will have on the various jurisdictions in San Mateo County. The assessed values are updated daily. The website address is https://secure.smcare.org/apps/art/Login.aspx ; the username is “Guest.”
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