Although average property values in Riverside County increased by over 25 percent in the past year, property taxes for about 45 percent of the residential property owners in the county will grow by less than half of 1 percent this year.
“This is doubly good news for Riverside County property owners,” said Assistant Assessor-Clerk-Recorder Peter Aldana. “Home values have increased significantly, and Riverside County will apply Prop. 13 to ensure residents pay only the appropriate, fair increase in their property taxes.”
Prop. 13, approved by voters in 1978, limits annual property-value increases to the annual inflation rate or to 2 percent, whichever is less. This year’s inflation rate is less than half of 1 percent, only the eighth time the rate has been less than 2 percent – and the second lowest increase – since Prop. 13 passed 35 years ago.
The inflation factor is the percentage change in the consumer price index in California during the 12 months leading to October of the current fiscal year. Recently, the California State Board of Equalization notified county assessors statewide to prepare tax rolls using an inflation factor just under a half-percent, rather than the usual 2 percent increase. The resulting calculation affects about 290,000 parcels and means that average residential property owners will pay about $30 less than they would under the 2 percent provision of Prop. 13.
About 500,000 of Riverside County’s 906,000 real-estate parcels are affected by the calculation that limits increases to the inflation factor. Valuation on about 400,000 parcels remains temporarily reduced because of another state measure, Prop. 8. Under that measure, property assessments can be reduced when current assessed value drops below market value.
Members of the media who would like more information about how the inflation factor is applied in calculating property taxes may contact Aldana at (951) 413-2879.