Total value of SLO County property sets a new record in ‘wow’ year for residential growth
The annual assessment of taxable properties in San Luis Obispo County was published Sept. 30, and it shows another year of property value growth after a strong 2021.
County Assessor Tom J. Bordonaro, whose office was responsible for generating the report, said 2021 represented a “wow” year for the value of residential properties in the county, though the same could not be said for commercial properties.
That “wow” year for residential properties translated to a record-setting value of $67 billion for all properties in the county, a 6.8% increase over last year’s assessment roll on a total of around 174,000 taxable parcels in the county.
“Over the past 10 years, the assessed value of all taxable properties has increased from $41 billion in 2013 to over $67 billion today,” Bordonaro wrote in his “Message from the Assessor.”
“Residential property has been red hot during the past year, a fact which is reflected in the 46.8% increase in changes in ownership,” he added.
The report called 2021 a period of “dramatic increase” in residential property value, during which time home values rose significantly as real estate prices increased and availability plummeted.
As construction tried to keep pace with demand, the 2021 housing market saw the greatest single-year increase in changes in ownership of residential properties in more than 20 years, the report said.
New construction in SLO County similarly saw its best single-year increase in value in over the last 20 years, accounting for 10.2% of the growth in property taxes.
Meanwhile, business property produced 5.5% of the total increase in value in this year’s assessment roll, which Bordonaro said represents “very modest” growth.
Challenges of Props. 8 and 19 addressed by report
The report also addressed the effects of recently implemented regulations on taxpayers in SLO County.
Proposition 19, which was passed in 2020 and allows homeowners over the age of 55 to transfer their existing property tax as assessed under Proposition 13 when they buy a replacement home, was a “major challenge that regrettably will result in turbulent times for taxpayers.”
Bordonaro called Proposition 19 a “a nightmare of concern and confusion for property owners who intend to give their property to the next generation of family members” and said his office is working to help local intergenerational homeowners navigate its requirements.
In 2021, 358 base-year transfers were processed in SLO County, with 116 of those transfers happening from within the county and 242 transfers coming in from other counties.
Alameda, Santa Clara and Los Angeles counties made up the highest numbers of base-year transfers coming into SLO County, all of which amounted to $112 million in total property value lost by SLO County.
On the flip side, 64 base year transfers were processed to other counties, with the majority of those transfers going to Santa Barbara, Riverside and Ventura counties, counting for a gain of $21 million in taxable value that SLO County received from people who left the county and then had their house reappraised to current fair market value.
The balance of those transfers adds up to a $90 million net loss in value to SLO County.
Finally, the local effects of Proposition 8, which allows a temporary reduction in property taxes when the market value of property falls below its factored base-year value, was addressed in the report.
The report called Proposition 8’s temporary value reductions “no longer appropriate” due to the rise in home prices and said the reductions will be removed from the SLO County properties they previously applied to.
This story was originally published October 9, 2022 at 8:00 AM.
