Overall, assessed property values in Santa Clara County increased by 4.74% in 2025, with nearby cities such as Los Altos and Palo Alto increasing by 6.43% and 5.47%, respectively.<\/p>\n
\u201cWe call it a mixed bag,\u201d Santa Clara County Assessor Neysa Fligor<\/a> said. \u201cThere is good residential growth, it\u2019s just offset by what\u2019s happening on the commercial space side.\u201d<\/p>\n Mountain View has the county\u2019s highest percentage of commercial parcels, with 18% of parcels in town designated commercial and 82% residential, Fligor said.<\/p>\n \u201cThis greater reliance on a weakened commercial market likely contributes to Mountain View\u2019s comparatively lower rate of assessment growth, especially in recent years,\u201d Fligor said.<\/p>\n The county\u2019s assessment roll is the basis on which local property taxes are levied, which then fund various public services, including local schools. The data reported this week reflects the assessed value of all taxable property in Santa Clara County, as of Jan. 1, 2026.<\/p>\n Sources of tax roll growth<\/p>\n Sunnyvale had the greatest roll growth in the county at 7.17%. Cities largely composed of residential properties \u2014 such as Palo Alto and Los Altos \u2014 also saw higher rates of growth.<\/p>\n Under Proposition 13, approved by voters in 1978, a property\u2019s assessed value cannot increase annually by more than 2% or the rate of inflation, whichever is lower, unless the property is reassessed because of new construction or a change in ownership.<\/p>\n When a property is sold, the assessed value resets to the market value. Those changes in ownership added $16.9 billion to the property roll. The application of the 2% inflation factor added another $14 billion. In total, the roll grew by about $35 billion, to roughly $760.1 billion.<\/p>\n \u201cWith what\u2019s happening in the AI sphere, we are seeing, especially in the high-end markets, people buying residential homes,\u201d Fligor said. \u201cWhat that tells me about the economy is there is still buying power.\u201d<\/p>\n New construction was another source of growth, adding $4.9 billion to the assessment roll. Construction at major commercial properties included Google and Intuitive Surgical in Sunnyvale and Applied Materials in Santa Clara.<\/p>\n Additionally, data centers<\/a> have increasingly contributed to roll growth. There are\u00a0at least 50 data centers<\/a>\u00a0in the city of Santa Clara alone, with more centers being constructed<\/a> in San Jose, according to the report.<\/p>\n \u201cData centers are valuable properties \u2014 the physical property itself, but also the equipment at the site,\u201d Fligor said.<\/p>\n Drags on tax roll growth<\/p>\n These gains were offset by an increase in property value reassessments under Proposition 8. Approved by voters in 1978, a county assessor can temporarily reduce a property\u2019s assessed value when its market value falls below its assessed value. This temporary reduction can happen automatically through the assessor\u2019s appraisal process or from a request by the property owner. A temporary reduction in the appraised value decreases the amount of taxes a property owner is required to pay and remains in place until the market recovers.<\/p>\n Prop. 8 temporary reductions for the county totaled $9.4 billion in 2025, an increase of $3.3 billion from 2024, with 24,727 properties in Prop. 8 decline status, nearly triple the previous year, according to the report.<\/p>\n \u201cWe\u2019re definitely seeing a drop there in the purchase price for a lot of these commercial properties,\u201d Fligor said. \u201cWhat we have happening as a result of these reductions in value is appeals being filed.\u201d<\/p>\n Currently, roughly $153.6 billion of assessed value is under appeal, with 98% of that figure coming from commercial properties, according to the report.<\/p>\n![\"\"](\"https:\/\/www.newsbeep.com\/us-ca\/wp-content\/uploads\/2026\/07\/Screen-Shot-2026-07-13-at-9.03.08-AM.png\")
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