Local Governments Reaping Benefits From Property Assessments

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(Modesto/Stockton, CA)
Friday, December 23, 2005

The buying and selling of homes in the Valley that are commonly assessed at around four hundred thousand dollars is filling the coffers of county treasuries. In Stanislaus County property tax revenue is expected to be twenty percent higher than last year.  San Joaquin County, Tax Collector Shabbir Kahn says he expects collections to exceed last year's by fifteen percent.

"The total tax charge for this year is 583 million, last year it was 508 million."       

Cities say they can use the additional revenue because they've had to turn over a larger portion of their tax income to the state. But don't look for city officials to start spending the money on major projects. Chris McKenzie of the League of California Cities says many local governments will treat the boost in revenue as a windfall.

"Because it could be a one-time or very short-lived kind of experience."

Real estate analysts agree with McKenzie, because there are signs the housing market is cooling off.