Surging Real Estate Market Helps State Collect $3B More In Tax Revenue
Surging property values across California led an unexpected increase of more than $3B in tax revenues for fiscal year 2016-17. San Francisco’s growth drove more into state coffers than forecast.
Local tax assessors finished valuing properties across the state at the end of June, reported the Sacramento Bee. Nearly all counties in California reported property value gains, led by a 9% increase in San Francisco. Bay Area counties such as Santa Clara and San Mateo followed closely in registering higher valuations.
California’s last budget was built around smaller valuations that implied a smaller tax base. The new figures indicate statewide revenues will rise more than $3B to about $60B.
While property taxes are administered locally, the state sends rebates and aid to counties to help them meet mandated levels of financing for schools. Firmer revenues at the local level will result in tax dollar "savings" that can be deployed elsewhere at the state level. [Bee]
