The gross value of the land in San Benito County has reached
$5.4 billion this year, jumping 7 percent since 2003 and generating
$54 million in property taxes for the county government and
schools.
The gross value of the land in San Benito County has reached $5.4 billion this year, jumping 7 percent since 2003 and generating $54 million in property taxes for the county government and schools.
The county assessor’s report, released Tuesday, showed a consistent property value increase throughout the entire county, with San Juan Bautista on top at 16.5 percent. Cienega Valley was at the bottom at .5 percent.
San Juan Bautista City Manager Larry Cain said the reselling of property is the main reason the city’s land value went up.
“There has been a lot of property in town that has recently sold that hasn’t been sold for many years,” he said. “Under the Proposition 13 guidelines, it was then able to be re-assessed.”
Because of Proposition 13, homeowners only pay a property tax of no more than a 2 percent increase a year, however, if they sell the property, it is re-assessed at the new value, making the land more valuable.
Another reason San Juan Bautista’s land value went up is because the city built a new subdivision of 35 homes, which was something Hollister cannot do.The city of Hollister, which is usually the biggest development growth area in the county, saw a stand still in land value because of the moratorium, according to County Assessor Arnold Fontes. The sewer spill in 2002, put the city under a growth moratorium until a new sewer plant is completed in 2006. There has been no new property development in two years, so the only reason for Hollister’s 6.3 percent increase in land value is because of the reselling of already developed property.
“The city has flattened out,” Fontes said. “There’s nothing anyone can do about it. It’s all because of the moratorium.”
Along with the moratorium, the land value in San Benito County is kept low because of the Williamson Act. The act is a government agricultural land protection program, which preserves land for agriculture use. In exchange for not developing the land, its owners receive a tax break, according to Fontes. Of the 893,440 acres of privately owned land in San Benito County, 76 percent is protected under the act, leaving little room for development, according to the report.
Even with the moratorium and the Williamson Act, San Benito County has continued to see land value increases for the past 10 years, but still remains small compared to its neighbors. In 2002-2003, land in Monterey County was worth $34 billion, Santa Clara County was worth $212 billion, Santa Cruz County was worth 23 billion and San Benito County was much lower at $4.6 billion.
Taxable Value
by School District Area
Area Increase
Aromas-San Juan 12.3 percent
Bitterwater 2.1 percent
Cienega .5 percent
Coalinga 1.5 percent
Hollister 6.3 percent
Jefferson 3.2 percent
North County 7.5 percent
Panoche 5.8 percent
Southside 4.4 percent
Tres Piños 4.1 percent
Willow Grove 3.4 percent
