Los Angeles homeowners will have to pay more to the tax man, thanks to a thriving real estate market.
Total assessed property values jumped 6 percent over the past year to a record $1.47 trillion, nearly $81 billion more than last year, according to a report from the L.A. County Office of the Assessor.
The increase marks the seventh consecutive year of property value growth in the county, the Los Angeles Business Journal reported.
Property sales caused the greatest increase, accounting for nearly half the growth. New construction was also a significant contributor.
The assessor’s office reviewed more than 2.3 million taxable real estate parcels in the county, in addition to 170,000 business and personal assessments; 26,000 boats and 3,000 aircrafts.
The assessments will be used as the base to calculate property taxes. Those taxes are then disbursed to over 900 local taxing agencies and used to fund schools, roads, public safety and other local government services, the assessor’s report explains.
L.A. County Assessor Jeffrey Prang said a city-by-city breakdown will be released later this year. The Westside’s growth increased faster than other areas, he said.
“As an economic indicator, this demonstrates that Los Angeles is very strong in residential and commercial properties and people are buying here,” Prang told the Los Angeles Daily News. “The bad news is for those looking to buy a home or invest in property, prices are going up.” [LABJ] — Subrina Hudson