Since homes are so expensive in Palo Alto, don property tax revenues make up for state cuts?
A. Unfortunately, no. Despite the rise in Palo Alto home values, last year’s property tax revenue growth was the lowest since 1993. This is because 36% of PAUSD’s property tax revenue comes from commercial property, where values have dropped sharply due to low growth, high vacancies, reduced rents and property reassessments. Also, state law limits property tax increases even when home values rise.
