Santa Clara County's property tax base experienced a growth rate that, while lower than most of the past decade, was slightly higher than the previous year, according to Assessor Neysa Fligor's annual message. The county's total assessed values have now exceeded three-quarters of a trillion dollars, positioning Santa Clara County as the fourth most valuable real estate area in California, following Los Angeles, Orange, and San Diego counties. Notably, the county's real estate value is more than double that of San Francisco.
Residential properties were identified as the primary engine for this growth. Assessor Fligor stated that "changes of ownership for residential properties continue to be the strongest contributor to growth in value." Reassessments following residential property sales alone were responsible for 49% of the county’s value increase, outpacing contributions from commercial properties, new construction, and Proposition 13 inflation adjustments as a driver of revenue. These significant property tax revenues are crucial for funding a range of public services, including state and local government operations, public schools, and various special assessment districts that serve San Jose neighborhoods and communities across the county.
Despite the overall growth, the number of residential transactions remained steady, though accompanied by a slight increase in median sales prices. While the countywide average growth rate stood at 4.74%, San Jose's assessed values grew by 4.5%. With $280 billion in value, San Jose contributed more than a third of the entire county's tax base, underscoring its substantial role in the region's fiscal health. Among other cities, wealthy residential areas saw notable increases, with Los Altos adding 6.4% to its values. Los Altos Hills and Monte Sereno each registered a 5.7% growth rate, and largely residential Morgan Hill grew at 5.6%. Sunnyvale reported the highest blended growth rate at 7.2%, driven primarily by commercial property assessments.
Assessor Fligor also briefly noted the contribution of data center expansion to tax revenues, explaining that these investments generate property taxes both directly and indirectly through support industries and increased residential values in surrounding areas.
This annual message marked a significant event for the Assessor’s office, being the first of its kind as Assessor Fligor approaches her one-year anniversary in office. The Monday morning event, held at San Pedro Square’s Blanco event space, also featured remarks from former Assessor Larry Stone, who discussed his transition and decision not to seek an eighth term after three decades of service. Other public officials, including Santa Clara County Board of Supervisors chair Otto Lee and San Jose District 3 Councilman Anthony Tordillos, were also present and spoke at the gathering.
