GAINES GAZETTE

February 2024

February Board Actions

During the February Board meeting, state assessees had the opportunity to present on capitalization rates and other factors affecting property values. We approved BOE staff’s request to publish summary decisions under Revenue and Taxation Code Section 40 for several previously decided petitions for reassessment of the 2023 unitary value. In addition, we approved staff-recommended changes to values of state-assessed properties discovered during audits. Finally, we received operational updates from the Executive Director; Taxpayers’ Rights Advocate (TRA) Office, including a presentation of the 2022-23 TRA Annual Report; Property Tax Department Deputy Director; and the Legislative, Research & Statistics Division Chief.

We are proud as a Board to meet our constitutional duties and remain committed to our mission to serve Californians through fair, effective, and efficient tax administration in support of state and local governments.

Informational Hearing:

California's Insurance Market & Affordable Housing

On day two of the February Board meeting, I convened an informational hearing to explore the ways in which California's insurance market is impacting affordable housing.

Years ago, when I was in the Legislature, I started to get a trickle of calls from rural homeowners who complained that they were getting dropped from their homeowner's insurance and could not get new coverage, or the new coverage was extremely expensive. These calls became more frequent over the years and now this problem with property insurance is spilling out into every corner of the state.

During the hearing, a panel of expert speakers outlined how the lack of affordable insurance is affecting every aspect of property in California, making it more difficult to build, own, or sell. This is going to have a dramatic effect on property taxes over time, as it changes the number of home sales and lowers the prices buyers are willing to pay for properties.

California property insurance is governed by Prop. 103, which was approved by the voters in 1988 and intended to protect consumers, although it is unclear if it is living up to its purpose.

We also face extraordinary wildfire risk, which has resulted in some staggering losses of property and life in the past decade and has wiped out decades of insurer profits.

The BOE co-administers the gross premiums tax on insurers and also oversees property tax matters. Property taxes cannot fail to be severely impacted by changes in property prices or changes to real estate market liquidity, partially driven by skyrocketing insurance costs.

The hearing was an important discussion, from different perspectives, on California’s insurance market and how it affects many areas of California’s real estate economy. I want to thank all of the participants for sharing their valuable expertise. This is an issue that has been growing in importance in California and, so far, has resisted solution, although we heard some great ideas.

This issue demands urgent action, and I am hopeful that the Department of Insurance and the Legislature are paying attention and will act quickly to make changes that will benefit California property owners.

Click here to watch the informational hearing webcast.

Taxpayers' Rights Advocate's Annual Report

This month, the Taxpayers’ Rights Advocate’s Office published its Fiscal Year 2022-23 Annual Report. The report highlights taxpayer services, the office’s accomplishments during the past year, and an overview of property tax cases resolved.

The Taxpayers' Rights Advocate's Office, led by Lisa Thompson, is a wonderful resource to help taxpayers who are unable to resolve a problem through normal channels. Their goal is to protect your rights and ensure your tax problems are handled promptly and fairly.

Their team is standing by to help! For more information, visit their webpage.

Five Solutions to Some of California's Woes

California's biggest problem is up for debate. Sadly, there are many contenders vying for that dubious distinction. But instead of focusing on the problems, we need to be focused on solutions. In my latest opinion piece in the Bakersfield Californian, I've listed without rank, five, chronic California problems where state leadership has completely failed and one simple idea for each to help improve governance and boost our quality of life. You can read it through the link below.

Disaster Relief

Are you a property owner who has been impacted by the severe winter storms? If so, you may be eligible for property tax relief and keep your Prop. 13 base year value when your home is rebuilt in a similar manner. Click here for more information.

As a Board Member, my number one priority is to advocate for taxpayers. I believe hardworking Californians deserve to have someone working on their behalf to streamline and promote efficiency in state government.

Should you need assistance with tax-related problems or have questions, visit my website for information on how to contact my office or email me directly anytime.

Monthly Board Meeting: March 19-20, 2024