Property values rise in Surf City

Kenneth Ma

HUNTINGTON BEACH -- The property value of homes, buildings, commercial

equipment and personal items such as planes and boats has increased 8.06%

locally. However, home and business owners who qualify for Proposition 13

will not feel the effect in their taxes, according to the Orange County

assessor’s office.

The total value of property in Surf City -- 70,446 items in all -- has

been assessed at $15.8 billion this year, up from a total of $14.7

billion in 1999.

County tax officials said taxes on 11,446 pieces of commercial

equipment and personal items may have gone up if the items were assessed

to be worth more.

But Rich Swanson, who works as a manager in management services at the

county tax assessor’s office, said most business and home owners in

Huntington Beach will not face a sizable tax increase because of

Proposition 13, which was passed in 1978 to reduce taxes and create a

predictable taxing system.

Under Proposition 13, a house bought in 1978 for $100,000 would be taxed at 2% the first year. The next year, the value the state uses to

tax the property would go up that 2% and the total -- $102,000 at this

point -- would be taxed at 2% again. This would continue to compound

annually.

If the value of a home drops below its original value, the homeowner

would be taxed at the lower rate for that year.

Swanson said owners with property that fell below the original value

in 1999 would have to pay more taxes this year if their properties

returned to their original value or higher.

Nearly 800 properties in the county fell or were unchanged this year.

Swanson said he is not certain how many properties in Surf City dropped

in value.Only home or business buyers who bought property this year would

have to pay the market rates; everyone else is locked into the rates set

by the proposition, he said.John Reekstin, the city’s director of

administrative services, said the value of many properties has increased

because of a strong economy and high real estate values in Orange County.

“We are just happy to be a part of it,” he said.

Swanson attributes the increase in property values to new construction

and resale of homes.

Property tax bills will arrive in the fall. Payments will be required

in two installments, due in December and April, Swanson said.