Wednesday, August 5, 2009
More bad news today for Monterey County coffers and property owners.
A new report from the treasurer-tax collector's office shows the county's transient occupancy tax (TOT), the hotel-tax revenue, down for the fiscal year that ended June 30. The numbers indicate the most recent TOT quarterly collections (for the quarter ending June 30) dropped 17.44 percent, compared to the same quarter last year. It also shows TOT yearly collections down 11.6 percent for the 2008-09 fiscal year.
These numbers don't include TOT from hotels located within cities, but do include popular tourist destinations in the unincorporated areas of Monterey County such as Pebble Beach, Carmel Valley and Big Sur.
Meanwhile, the assessed value has dropped on 31,000 residential properties in Monterey County.
County Assessor Stephen L. Vagnini recently completed a “decline in value review” of more than 90,000 homes and condominiums in Monterey County, and reports that, as a result of the declining real estate market, the county's assessment roll declined to $49.9 billion, which represents a 3.44 percent decline in assessed values.
“We have begun mailing results of the review to owners of single-family residences and condominiums,” Vagnini said in a statement. “Our review will result in lowered assessments on 31,000 homes and will be reflected on bills issued in October.”
These decreases are called Proposition 8 reductions, and means property owners will likely pay less taxes--at least for the short term.
Proposition 8 value reductions are temporary. Once a property receives a Proposition 8 reduction, its value must be reviewed as of Jan. 1 each year to determine whether the current fair market value remains less than its Proposition 13 base-year value plus inflationary adjustments. The Proposition 13 value is typically the property’s acquisition value plus inflation factors for intervening years. The lower of these two values is the value used for property tax purposes.