Assessed property values in cities within Los Angeles County combined for a collective increase of 6.6 percent to $1.57 trillion in calendar year 2017, driven in part by a booming industrial real estate market in City of Industry and the Los Angeles Rams’ stadium project in Inglewood.
Data from the property assessment roll released last week by County Assessor Jeffrey Prang showed City of Industry property values rising 12.1 percent in 2017. Prang credited a hot industrial real estate market driven by vacancy rates as low as 1 percent last year.
Next on the list was Inglewood, where a $5 billion L.A. Stadium & Entertainment District at Hollywood Park – which will include the Los Angeles Rams football stadium complex along with retail, commercial, hotel and residential developments –is under construction. Prang said a significant portion of the stadium project was added to the assessment roll on Jan. 1. That, along with increasing property values in the neighborhoods near the stadium project and the Crenshaw-LAX rail line, which is currently under construction, helped fuel the 10.1 percent increase in Inglewood’s assessed valuation, he said.
The double-digit gainers led the overall 6.6 percent increase in assessed valuation in the county, the year-to-year fastest growth rate since 2007. It also marked the eighth-consecutive year of total assessed valuation gains.
“Los Angeles County’s economic base is strong and continues to be on an upswing,” Prang said.
The 2018 assessment roll comprises 2.57 million real estate parcels and business assessments, including 1,874,588 single-family residences, 249,660 residential-income properties, 248,198 commercial/industrial properties, and 205,204 properties with business furnishings and equipment exceeding $5,000 in value.
Assessed valuation serves as the base on which property taxes are calculated. California law under Proposition 13 sets the baseline for property tax at 1 percent of the assessed value in the year a property changes hands (other charges can be added by local governments to finance various measures or programs).
The basic 1 percent charge, meanwhile, means a property valued at $1 million would carry a baseline property tax rate of $10,000 annually.
The rate of base charge can increase incrementally – a maximum rate of 2 percent per year, or the addition of $200 per year to the $10,000 baseline on the $1 million property– until the next change in ownership.
The structure means that major changes in assessed valuation typically occur when properties sell or when new construction adds significant value to properties.
For reprint and licensing requests for this article, CLICK HERE.
Stories You May Also Be Interested In
- Value Add
- L.A. County Assessed Property Valuations Pass $1.6 Trillion, Led by Inglewood’s NFL Stadium
- Assessed Value of Real Estate in L.A. County Hits Record $1.57 Trillion
- Recession Takes Toll on Assessments
- L.A. County Assessed Property Values Up 6 Percent to Record $1.47 Trillion
- Inland Property Values Surge in L.A.
- REAL ESTATE---Property Values Hit Pre-Recession Level