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The property tax is an ad valorem tax (a tax levied according to the value of real property) imposed on <br />land and permanently attached improvements such as buildings. In California, the property tax system is <br />administered by three county entities: the Assessor, the Auditor-Controller, and the Tax Collector. The <br />City of Santa Ana receives an average of 19% of the property tax paid by local property owners. Annual <br />increases in property taxes are driven by changes in ownership, new construction, and the maximum 2% <br />assessment growth allowed under Proposition 13. <br />In FY25–26, the City expects to receive $95.88 million in property tax revenue, an increase of 3.3% from <br />the previous year. This slower growth is mainly due to higher interest rates, fewer home sales, and a <br />limited number of homes for sale. While home values are still stable, they’re not rising as quickly as they <br />did after the pandemic. Despite this, property tax remains a reliable source of income for the City <br />because it’s based on the value of real estate, which gradually increases over time. Over the past five and <br />ten years, property tax revenue has grown at a consistent average rate of about 4.6% each year, helping <br />to fund essential city services like public safety, parks, and libraries. <br />8