GAINES GAZETTE

October 2024

Informational Hearing on California's Insurance Market

On October 29, I convened a second informational hearing to explore the ways in which California's insurance market is impacting housing and the economy.

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.

October Board Actions

During the October meeting – in addition to the Informational Hearing – the Board honored and congratulated Glenna Schultz (pictured) on her 42 years of dedication and contributions to the State Board of Equalization. I appreciate her service and wish her all the best in her retirement journey.

We also heard updates from the Executive Director on the status of pending and upcoming organizational issues.

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.

General Election is November 5!

Ballots for the November 5 general election have been mailed and should have arrived in your mailboxes. Remember that ballots returned by mail must be postmarked by November 5. Ballots returned at a secure ballot drop box must be deposited by 8:00 pm on November 5. To find a ballot drop off location near you, click here. Elections matter and so does your vote!

Poll Finds Cost of Living a Top Concern

According to a new Public Policy Institute of California poll, the cost of living is the top concern of Californians – far outranking immigration, crime, reproductive issues, the political divide, education, healthcare, or environmental issues.

The pollster asked 1,646 California adult residents, “Thinking about the state as a whole, what do you think is the most important issue facing people in California today?”

This response is not surprising. California is among the most expensive states in the nation for basic necessities like housing, food, gasoline, and insurance. The frustrations people feel are real and we have got to enact policies that address the affordability crisis, or we will continue to see people fleeing the state.

The poll was conducted in English and Spanish from October 7 to October 15 and has a margin of error of plus or minus 3.1 percent.

Around the First District

Thanks to How 2 Love Our Cops and Thrive with 10-35 for hosting the Barrels & Badges fundraiser event. It was a wonderful evening in support of the non-profit organizations that provide vital programs and services for the families of law enforcement in El Dorado County.

Pictured here with my wife Beth, retired CHP Division Chief Brent Newman, and Vicki Newman, founder and President of How 2 Love Our Cops.

Congratulations to El Dorado County Deputy Sheriff Sean Fitzgerald on his retirement after more than 32 years of service. His unwavering commitment to the community and exemplary work in law enforcement has made a lasting impact. Lucky for El Dorado County, Sean will not fully ride off into the sunset and will be working part-time as a bailiff and in the boating unit patrolling our waterways. I wish him all the best in his retirement journey!

Veterans & Active Military Assistance

On November 11, we celebrate Veterans Day, the most important secular holiday recognized each year. For without the sacrifices made by the brave men and women who protect our country, we would not be able to enjoy the freedoms that are the hallmark of this great nation. Veterans Day is an opportunity to acknowledge the strength, courage, and dedication of America’s veterans and military families. I'm especially grateful for my father, who fought in World War II. 

The BOE is committed to working with County Assessors to raise awareness of the Veterans’ Exemption and Disabled Veterans’ Exemption to support veterans, their families, and caregivers to reduce their property tax liability.

While there is no general property tax exclusion for veterans, there are laws that reduce the amount of property tax due for qualified veterans and veterans’ organizations. For more information, please visit my Resources page.

To all of you who served, I salute you and wish God’s blessings upon you.

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: November 19-20, 2024

Reminder: Property Taxes Due December 10, 2024