Santa Cruz County property value reaches record $64.7 billion

The growth of the county’s property values is important to the health of the county government’s $1.23 billion budget. Under Prop 13, the county receives about 13% of its property taxes back from the state, which has historically created a strained budget. So the county has sought revenue through raising its sales tax, now 9.5%, to help alleviate the budget stress. Cuts to public health grants and aid from the Federal Emergency Management Agency have weakened the county’s finances this year.

“The property tax roll helps fund the local services our residents rely on — like public schools, fire protection and libraries — and it remains one of the largest sources of discretionary  revenue for the county’s general fund,” said Assessor-Recorder Sheri Thomas. 

A backlog of properties needing to be assessed built up in the county from the CZU Lightning Complex fire and the implementation of Proposition 19, which raised taxes on inherited homes and let homeowners over the age of 55 sell their home and keep the assessed rate in a new house. “Significant progress” was made on that backlog this year, according to the Santa Cruz County Assessor’s Office. 

-William Woodhams, Lookout Santa Cruz July 8, 2025