Los Angeles County Assessor Jeff Prang has announced that the 2023 Assessment Roll has increased by 5.91% over last year, marking 13 years of continuous growth.
The Assessor establishes the assessed value of all taxable property in Los Angeles County each year as required by the State Constitution. The assessed value of that property is placed on a list called the Assessment Roll. Assessments are based on the value of property on January 1, 2023.
The Assessment Roll is not only the foundation for the property tax system, but it also provides insight into the health of the local real estate market as well as the local economy. It also is a valuable tool for local governments as they prepare their annual budgets in anticipation of property tax revenues.
The 2023 Assessment Roll’s growth translates to a record $1.997 trillion in total net value that will generate about $20 billion property tax dollars for vital public services such as public education, first responders and healthcare workers, as well as other County services.
Please read the entire press release that was recently distributed to media outlets.
Although the housing market has cooled considerably compared to 2021, home median sales prices (MSP) remained strong, reaching a record high exceeding $900,000 while falling to about $865,000 in June. The continued strength of the single-family residential market through the first three quarters of 2022 produced a marked increase in property transfer assessments, which added $67.4 billion to the Assessment Roll.
The inflation adjustment mandated under Proposition 13 is the second most significant factor contributing to the Assessment Roll. This year the California Consumer Price Index trended well beyond the full 2% allowable. This resulted in a $36.7 billion increase to the 2023 Assessment Roll.
New construction added a moderate $5.6 billion to the 2023 Assessment Roll, while decline-in-value reductions and miscellaneous changes decreased the Assessment Roll by $2.5 billion.
Personal property and fixtures came in stronger than expected and added a record $10.4 billion to the 2023 Assessment Roll. Business sectors such as aerospace, motion picture, and retail, which were adversely impacted in recent years, saw robust growth this past year as consumers returned to the market.
The 2023 Assessment Roll consists of 2,391,198 taxable real property parcels, 200,969 business property assessments, 33,871 boats, and 2,952 aircraft.
However, the growth does not mean property owners will be subject to a corresponding increase on their annual property tax bills. Most property owners will see only a 2% adjustment prescribed by Proposition 13.
Article Courtesy of County of Los Angeles Office of the Assessor, All rights reserved.
