Plunging home values mean falling taxes in Stanislaus County ,CA

Modesto Bee reports:

Northern San Joaquin Valley home values have declined so much that more than a quarter of homeowners can expect to pay less property tax next year.

About 37,000 Stanislaus County homes will be reviewed. Their assessed values are expected to drop 10 percent to 40 percent, Assessor Doug Harms said Monday.

Every home purchased since Jan. 1, 2004, will be evaluated, and Harms predicted that most will have their assessments reduced by $25,000 to $50,000.

Some home values have fallen far more than that. Harms said new Modesto and Patterson houses purchased during 2005 have declined the most, especially midsized homes of 1,600 to 2,500 square feet. He said those likely have lost 40 percent of their value.

Lowered assessments mean lower property taxes. That's good news for taxpayers but bad news for government budgets.

You'll be hearing more of these kind of stories.