Editorial
Building
by Bob Hazard
Peace of
Mr. Hazard is an Associate Editor of this paper and a former president of Birnam Wood Golf Club
Mind
Taxing Times II in Montecito: Property Taxes
T
his year, Montecito’s 4,184 homeowners will send $93 million to the County of Santa Barbara in property taxes. That’s up from $70 million in pre-recession 2007-08 and $82 million in 2011-2012, representing a 33% increase in the last eight years. For Santa Barbara County as a whole, property taxes in 2015-16 are expected to climb to $718 million, compared to $577 million in 2007-08 and $620 million in 2011-12, a 24% increase in the last eight years.
Does Montecito Pay Its Fair Share of Property Taxes?
With 2% of the county’s population (8,965 residents of Montecito out of 426,878 county residents), Montecito will pay $93 million in property taxes this year, or 13% of the $718 million collected by the county. Montecito’s 4,184 parcels have an assessed value of $9.3 billion, or an average of $2.3 million per parcel, compared to the total county’s 128,817 parcels with an assessed value of $63.4 billion, or $500,000 per parcel.
How Are Property Taxes Determined?
Proposition 13 limits California property taxes to 1% of the assessed value of the property, with an annual inflation of no more than 2% per year. When an owner sells his property, it is reassessed at 1% of the selling price, plus the cost of any improvements made by the purchaser. Property taxes are payable in two installments, the first due on November 1 (late, if paid after December 10) and the second due on February 1 (late, if received after April 10). There is a late surcharge of 10% of the amount owed.
Who Pays What in Montecito?
Montecito is a residential community with few large commercial properties.
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