Assessed property values across California fell this year for the first time in nearly eight decades — and Merced County saw the biggest drop of all.

In fact, no other counties in California experienced declines even close to the level recorded locally, according to new data from the state’s Board of Equalization, which tracks property assessments across California.

The total assessed value of all property in Merced County fell $2.6 billion — or 13.4 percent — compared with last year. The next largest year-to-year decline was 10.5 percent, in Riverside County.  

Statewide, property values dropped 2.4 percent.

Because property tax bills are based on assessments, the sharp decline in property values will leave Merced County with far less tax revenue this year. Local cities and the county already have slashed their budgets as a result.

Kent Christensen, the county’s assessor, said he wasn’t surprised when he learned that declines in Merced were the biggest in the state. “For many years we had a false economy here,” he said. “And these numbers reflect that.”

Christensen said Merced’s near-total dropoff in commercial development last year played a considerable role in determining the county’s bottom rank.

“Commercial growth is what carried us in 2007 and 2008, but that’s no longer the case,” he said. “In places like Riverside, where that kind of development is still going on, the situation isn’t as bad.”

Even other counties in the San Joaquin Valley have fared far better than Merced. The next-worse decline in the Valley was in San Joaquin County, where property values fell 10.2 percent compared with last year. Madera County’s year-to-year decline was 8 percent. Stanislaus’ was 7.7 percent. Fresno’s was 2.9 percent.

Across California, San Francisco County saw the biggest gain, with a 7.1 percent increase.

Each year, county assessors release figures compiling the assessed value of all properties in their jurisdictions. This year’s total for Merced was $17.4 billion. That includes the worth of about 82,000 parcels of residential, commercial and industrial real estate.

Last year’s local total was about $20 billion. The total for 2007 was roughly $20.5 billion.

Merced County sent notices in June to roughly 42,000 property owners who will receive lower tax bills this year. In 2007, the county sent lower bills to about 6,500 property owners. In 2006, that number was just 100.

Reporter Corinne Reilly can be reached at (209)385-2477 or creilly@mercedsun-star.com.