If the market in housing remains strong and the rate of turnover increases, those higher values will, at some point, be reflected in taxable values and therefore in revenue to schools and local governments.
Adding new construction of both housing and commercial property to the equation could result in a boom of property taxes during the rest of the decade, according to a projection of the state’s fiscal situation by Legislative Analyst Mac Taylor. http://topics.sacbee.com/Mac+Taylor/
Taylor sees the state amassing multibillion-dollar surpluses beginning next year, and a big factor in that forecast is a boom in property taxes.
http://www.sacbee.com/2013/12/18/6009282/dan-walters-rising-housing-market.html