A "Split-Roll" Property Tax System and San Diego's Economy
Adopting a "Split-Roll" property assessment system that raises assessed values to match market values would result in a tax increase estimated at $173.5 million annually in San Diego alone. In recent years, assessed value of commercial/industrial properties were estimated by the California Board of Equalization to be at 85.7 percent of market value. SDCTA applied the average tax rate to the increased assessed value to estimate the additional property taxes that would be paid by San Diego County Taxpayers. After accounting for supplier relationships and employee spending, the tax increase's estimated initial economic impact is potentially as high as $355.4 million annually equating to 2,240 jobs in San Diego alone. The number and type of jobs lost will ultimately be determined by economic forces just as the estimated economic activity figures may be offset by decreased saving rates in the face of higher consumer prices. The degree to which these impacts will be passed on to consumers will be determined by how businesses react to the tax increase.