The value of Santa Clara County’s taxable property hit an all-time high of $483.2 billion, according to the latest assessment unveiled this past week. That’s a $33 billion bump from the year prior and marks the sixth straight year of growth exceeding 6 percent.
The growth in assessment roll this year comes mostly from new construction and growth in business property, according to county Assessor Larry Stone. Apple Computer alone accounted for a $1.5 billion increase in assessed value, primarily from building its massive spaceship-style campus in Cupertino.
Companies like Google, Apple, Samsung, LinkedIn and Nvidia increasingly prefer ownership to long-term leases, which stabilizes the office market against future recessions, Stone explained in a press release.
The Dot-Com boom of the early aughts, by contrast, involved largely speculative development and leasing to startups with few to no earnings. As a result, office vacancies following the 2009 economic collapse reached 25 percent, according to the assessor.
“Rebounding from the greatest economic downturn since the Great Depression, Silicon Valley economy has surged back to record levels,” Stone said. “Santa Clara County is well into the eighth year of recovery since the bottom of the recession in 2010. The turnaround is truly remarkable.”
California’s public schools are the main beneficiaries from the property tax increase. More than half of local property taxes fund public education from kindergarten to community college. For more information about the assessment, including how to submit an appeal, visit the county website here.