– The assessed value of business property in Gilroy grew faster
than the countywide rate of a 2.28 percent as of Jan. 1, 2004.
GILROY – The assessed value of business property in Gilroy grew faster than the countywide rate of a 2.28 percent as of Jan. 1, 2004.
The county’s growth rate was the slowest it 10 years, according to County Assessor Larry Stone, who released the new numbers Thursday.
“In just four years, we’ve gone from double-digit assessment growth, to barely any at all,” Stone said.
However, Gilroy’s rate of growth continues to hover around its typical 5 percent, growing by 7.28 percent last year.
The assessment roll was taken Jan. 1 and reflects the local economy during 2003. Included in the assessment are office buildings, shopping centers, industrial property and research and development campuses. Business property – such as machinery, equipment, computers and fixtures – is also a factor.
Gilroy’s numbers are likely bolstered by the two retail centers being constructed east of U.S. 101 on Pacheco Pass Highway.
“Whenever a new property is constructed, it hits the assessment roll 100 percent,” Stone said.
Construction that was partially completed as of Jan. 1 was assessed at half its value.
Although Gilroy’s growth was among the highest in county, Morgan Hill experienced 9.17-percent growth in its assessed values, the highest of any city in the county.
Sunnyvale, Santa Clara, Milpitas and Mountain View were especially hard hit. All experienced no growth in their assessed values with several experiencing declines in total assessed value of as much as 8 percent.
Overall, the negligent growth in assessment values for the county means it’s more difficult for the county to create a budget, Stone said.
“Not only is it a disappointment the roll growth is so meager, it’s these tremendous peaks and valleys, which make it difficult to support and fund consistent government services,” Stone said.
The city of Gilroy receives a portion of the property taxes collected by the county. City officials were out of the office Friday and unavailable for comment.
Meanwhile, residential property has been stable, and in some areas has grown, officials from the Assessor’s Office said.
New assessment rates for residential property have not yet been released.