Small Property Tax Increase for 2014

 

A petite rise of property tax while be assessed to San Diego County owners due to low inflation. The numbers will be hiked to .45 percent on December 2014 and April 2015 property tax bills, which is less than a quarter of the increased number administered in the previous year.

According to an article in the San Diego Union-Times, due to the 1978 proposition to tax reform, the hike of taxes goes hand and hand with consumer price index and taxes and will go up no more than two-percent annually. This tax will continue to rise once new voter approved bonds come into play.

In the past 30 years, besides 2011 due to deflation, the amount has increased two percent in seven other occasions. In 2014, this will be the smallest jump in property tax, which is a record in San Diego real state to date. The change has already gone into effect as of January 1st.

For example, if you’re home was appraised at  $400,000 in 2013, and that bill for the prior year’s property tax stood at $4,400, that also comprises of voter-approved bond payments and special assessments; This year the increase of the property value would surge to $1,816 with a $20.09 tax increase.

The value would have jumped to $8,000 and the tax bill would have been as high as $88 if the tax increase had been at the maximum two percentile rate.

“Gasoline is a significant part of (the inflation rate) and it’s been dropping – and that’s one of the reasons this dropped,” said San Diego County Assessor Ernest Dronenburg Jr, to the Union-Times. “I’m saying gasoline has sort of plateaued for a while, while everything in the economy is picking up in other areas.”

“If gasoline stays even, I’d predict we’d have another normal 2 percent increase next year.”

According to the San Diego Union-Times, local assessors have been made aware of the inflation rate since December 11 from the state Board of Equalization. The California Consumer Prince Index jumped from the 241.537-242.633 from the year-to-year from October 2011-2012. After it started resulting in an adjustment factor, the index moved to as high as 1.00454. 

As much as 982,000 parcels of San Diego County’s land changed to the newest rate, which is 71 percent of the population according to Dronenburg.

On the other hands, taxpayers will receive leeway in 2014 when homeowners will be provided with tax breaks in regards to cities, schools and special districts. Although some of the properties had the value of their homes decreased because of the slide of the real estate market in 2013, market value recently has increased.

“If the current market value as of Jan. 1, 2014, is higher than it was in 2013, the property value will be restored to its former Proposition 13 value or to the current market value, whichever is less,” Dronenburg said to the Union-Times.

“It’ll be less this year, but it’s still significant dollars. However some of the slowdown will be offset by more e sales at higher prices. If the overall assessment roll goes up to $4 billion to $412 billion, then the total tax take care could rise by at least $44 million.”

By Linda Moore

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