GAINES GAZETTE

April 2023

April Board Actions

During the April Board meeting, we conducted a public hearing for state-assessed properties; and adopted land escaped assessments and Board Roll changes. We received operational updates from the Executive Director, Communications Chief, Taxpayers’ Rights Advocate Office, Chief Counsel, Property Tax Department Deputy Director, and acting Legislative, Research & Statistics Division Chief.

We also heard an overview and held a robust discussion on proposed 2023 affordable housing legislation. We considered our position on legislation, including Senate Bill 20, which would authorize two or more cities, counties, or councils of government to "create a regional housing trust for the purpose of funding housing to assist the homeless population and persons and families of extremely low, very low, and low income, within their jurisdiction by entering into a joint powers agreement pursuant to the Joint Exercise of Powers Act.

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.

Around the First District

Proposition 19 Update

The BOE recently updated its Introduction to Proposition 19 Presentation to reflect implementing statutes and Board adopted Property Tax Rules.

The latest information on Prop. 19 is always available here.

NBA Playoffs Result in California Tax Revenue

What do the National Basketball Association (NBA) playoff athletes and tax collectors have in common? They're both hard at work in California. According to an article from CalTax, for the first time in NBA history, all four California teams are in the playoffs at the same time – a situation that will generate a significant amount of extra tax revenue for the state and local governments.

The exact amount of additional revenue is impossible to determine, but the post-season appearances by the Sacramento Kings, Los Angeles Lakers, Los Angeles Clippers, and Golden State Warriors have several positive impacts on state and local coffers:

• Players who reside in other states are required to pay California income tax on the amount earned here (through a complicated formula, based on “duty days”), so out-of-state players will be taxed here for every playoff game played in this state, and also for any non-game days spent in California for practices, meetings, promotional events, etc.
• Players who reside in California will receive extra pay for the playoffs, so the state will collect more in income taxes (at a 13.3 percent rate for those with taxable income over $1 million).
• With more games in California, local governments will collect more parking fee revenue, sales tax revenue from souvenir sales, income taxes from vendors, and gas tax money from motorists burning fuel while stuck in traffic near the arenas.
• Visiting teams and journalists will pay additional airport landing fees, hotel taxes, sales tax on catered food, etc.

The actual amounts of taxes paid will vary dramatically based on the salaries of the players, the size of their post-season bonuses, and the number of games played in California.

Property Tax Levies Increase 4% Statewide

The BOE released its Fiscal Year (FY) 2021-22 Annual Report, which includes the total net statewide county-assessed property value for FY 2021-22 at $7.6 trillion – an increase of $500 billion, or 7% in property value from FY 2020-21. This resulted in $83.1 billion in total local property tax revenues, contributing $44.6 billion to schools and $38.5 billion to counties, cities, and special districts. This is an additional $3.2 billion, or a 4% increase, in property tax revenues from FY 2020-21 of $79.9 billion.

Given this increase in property taxes, there should be no need to raise taxes or fees on hardworking California families, or in any way weaken Prop. 13.

The BOE is constitutionally and statutorily responsible for the oversight of California’s property tax system. One of the BOE’s core duties is to promote assessment practices that are uniform and consistent statewide, and new in this year’s report includes specific data reflecting the BOE’s work on this responsibility. The report also includes state- and county-assessed values, aggregate qualifying property tax exemptions, and other statewide property tax data.

Past annual reports and additional information can be found on the BOE website.

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: May 23-24, 2023

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