Sacramento County Secured Tax Roll Decline Continues for 2012-2013 Closed Roll Period - ParcelQuest
The total value of secured parcel assessments in the county of Sacramento declined ($3.4 billion) in the current 2012-2013 closed roll period versus a year ago - ParcelQuest
(PRWEB) October 26, 2012
Although property market values may be stabilizing somewhat throughout SAC County, the overall assessed value of secured parcels has dropped -$3.4 billion in the current roll period versus last year as assessment values continue to ‘catch up' to recent market value declines. Since the 2008-2009 closed roll period, the total value of secured parcels in SAC County has dropped $14.5 billion and now stands at $110.986 billion as the combination of sluggish home-sales and lack of new construction continue to challenge the growth of the tax roll.
Nearly a third of SAC County's tax roll decline can be attributed to a drop in the value of secured parcels in the city of Sacramento, as secured parcels have declined $993 million in value in the current roll period. The remainder of secured assessed parcel value declines in SAC county are primarily driven by declines in Elk Grove (-$730 million), Folsom (-$251 million), Rancho Cordova (-$255 million), and Citrus Heights (-139 million). The aforementioned cities collectively represent roughly 60% of the total secured assessed parcel value in SAC County.
Another trend that continues in SAC County is the year-over-year shifting of secured parcels from Prop-13 to Prop-8 status. While Prop-13 restricts growth of a parcel's assessed value to 2% annually unless a change in ownership occurs, Prop-8 parcels are tied to fluctuations in the real estate market and can, as a result, adjust up or down much more radically and without limit. Currently, just over 50% of SAC County's secured assessed values are driven by Prop-8 parcels. This is a dramatic shift from the 2008-2009 closed roll period when Prop-8 parcels comprised only 22.97% of the county's total assessed parcel values.
As the largest city within SAC County, the city of Sacramento is driving the majority of the shift of parcels from Prop-13 to Prop-8 status as the overall value of Prop-8 secured assessments now stands at $17.072 billion, up from $15.426 billion a year ago. Prop-8 parcels now represent just under half (49.44%) of the Sacramento tax roll, compared to 43.42% a year ago. In the city of Elk Grove, Prop-8 parcel assessments stand at $9.839 billion while representing an overwhelming majority (73.99%) of Elk Grove's overall tax roll. The total value of Prop-8 assessments comprise just under half of the total tax roll value in Folsom (48.69%), Citrus Heights (44.81%), and Rancho Cordova (49.6%) as the transition of parcels from Prop-13 to Prop-8 persist.
As a larger portion of SAC County's secured parcels shift from Prop-13 to Prop-8, a greater portion of the tax roll becomes unstable. In SAC County alone, for example, the average assessed value of each Prop-8 parcel declined -$16,655 while the average assessed value of each Prop-13 parcel increased only +$3,558. This is disturbing news for various cities and districts that largely depend on increases in property tax revenue to fund new development projects.
Since 1995, ParcelQuest has been working directly with all 58 California county assessors and their staff to provide the most current data and parcel maps available anywhere. ParcelQuest's unique relationship with California's county assessors gives its clients access to better mid-year assessment data, enabling them to more accurately forecast property tax revenue, efficiently manage levy administration and accurately evaluate the effect of Proposition 8 reductions on the total assessed value for virtually any bond issue in the state of CA. Using its own in-house cadastral mapping staff, ParcelQuest also provides GIS files and data sets that are continually standardized and updated to reflect the latest parcel boundaries and assessor information, including ownership, assessments, sales and property characteristics. ParcelQuest currently markets its products and services through the website: http://www.parcelquest.com.
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