S.D. Housing Prices Continue to Drop, But Property Taxes Expected to Increase
Wednesday, April 30, 2008
Home values in San Diego continue to plummet. But city officials are still projecting a jump in property tax revenue. KPBS Reporter Amita Sharma has more.
The forecast for the San Diego housing market includes less building, weak sales and slower growth in property values. And in the past year, home prices dropped almost 17 percent. But city officials still believe property tax receipts will rise 6.7 percent next year.
Mary Lewis is the city's chief financial officer. She says that projection is based on tax revenue the city expects from the huge rise in property value of homes that were bought before the market took off and are being sold now.
Lewis: And that has offset the sale of homes where the valuation has dropped so there is still growth in the property rolls, the assessed valuation year over year.
Meanwhile, the state's property tax growth rate is less than half of what it was last year. Amita Sharma, KPBS News.
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