GAINES GAZETTE
April 2020
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These are historic and often overwhelming times we are living through. Some of us have lost loved ones or been sick ourselves. Others are unemployed, underemployed, struggling to make ends meet, or trying to save a business. Life has changed significantly and we've all been affected in some way. My heart goes out to each of you.
As a small business owner and father of six, I also worry about my business and miss seeing my family. My two youngest still live at home but my son lost his job and my daughter is completing her senior year using online classes and will miss all the pomp and circumstance of a normal high school graduation.
But, as always, there are positives. Californians have shown resilience and strength of character by staying home and distancing themselves. Thankfully, the measures are working to slow the spread and I hope that very soon we can safely resume our lives and get back to work.
My prayers go out to everyone in this great nation.
Sincerely,
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Board Actions on COVID-19
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On April 21, the Board held its monthly meeting using teleconferencing technology. After an extensive discussion with county officials and other stakeholders, the Board voted unanimously to form a working group to consider the impact COVID-19 is having on administrative matters under the BOE’s authority.
The working group will include Chairman Vazquez and Vice Chair Schaefer, county assessors, assessment appeals boards, BOE staff, taxpayer advocacy groups, and taxpayers. The working group will hold publicly noticed telephonic meetings to discuss actions the Board can take in the short- and mid-terms, including whether the Board has the authority to extend the May 7 due date for the payment of business personal property tax without the Governor's consent.
Members of the working group will also discuss whether it is prudent to ask the Governor to extend authority to the BOE to issue a blanket waiver of penalties statewide.
The group will examine whether Revenue and Taxation Code section 170—which authorizes mid-year reassessment of properties that have declined in value due to damage caused by a calamity during a governor-declared emergency—applies only to physical damage or also to economic damage.
Finally, there was discussion about whether electronic signatures could be used on property tax documents. The Board voted to issue an advisory letter encouraging county assessors to accept electronic signatures in lieu of wet signatures.
The Board then voted unanimously to schedule an additional meeting in May so any recommended actions made by the working group could be adopted prior to the Board's meeting on May 27.
We are proud as a Board to have met our constitutional duty and remain committed to our
mission
to serve Californians through fair, effective, and efficient tax administration in support of state and local governments.
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Legislative Hearings on COVID-19
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State legislative budget subcommittees met recently to ask questions and review Governor Newsom’s spending associated with the pandemic.
Before recessing in March, the Legislature passed
Senate Bill 89
, which gave the Governor authority to spend up to $1 billion on COVID-related expenses. Once the Department of Finance Director has given written notice to the Joint Legislative Budget Committee, the funds may be used for any purpose associated with the Governor’s March 4, 2020
Proclamation
of a State of Emergency.
The bill also included language encouraging the administration to work with legislators and their staff in developing strategies to help alleviate the economic effects of COVID-19.
In two separate hearings, budget subcommittee members questioned administration officials on the $1 billion purchase of masks from a Chinese company. They also requested more detailed information, oversight, and collaboration on all matters pertaining to the Governor’s COVID-19 response, so they are better prepared to respond to the elected officials, local leaders, and constituents in their districts.
I applaud the Governor’s quick actions with respect to flattening the curve. However, Californians deserve appropriate government accountability when it comes to how their tax dollars are being spent and I urge lawmakers to continue pressing the administration for transparency.
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Legislative Analyst's Fiscal Outlook
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In just a few short weeks, California—the world’s fifth largest economy—has been thrown into a recession. This news was confirmed by California’s Legislative Analyst, Gabriel Petek, who shared his
Preliminary Assessment of the economic impact of COVID-19
during the Senate’s April 16 budget subcommittee meeting.
According to Petek, the high rate of job losses leaves the government facing not only a decrease in revenue from taxpayers but also greater demand for government services including social services, healthcare, and education.
Next month, lawmakers and the Governor will be working on a revised state budget that will be more realistic than the massive $222 billion budget Governor Newsom proposed in January. There is no doubt the pandemic will radically change our spending priorities and that many difficult decisions and cuts will have to be made.
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Administration of Property Tax: A Primer
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Several government agencies are responsible for administering state property taxes and it can sometimes be confusing for the public.
The
BOE provides
oversight
to ensure the state’s 58 elected county assessors follow uniform assessment practices.
County assessors assess the taxable property in their county every year. They identify, value, and list all properties on the local assessment roll that is given to county tax collectors.
County tax collectors prepare and mail property tax bills, which are due in two equal installments: November 1 (delinquent December 10), and February 1 (delinquent April 10). The due dates are
established by
law
and can only be changed by the Legislature or a Governor’s Executive Order. They cannot be changed by the BOE, a county assessor, or a tax collector.
Unlike the federal and state income tax deadlines that were moved from April 15 to July 15, there was no tax relief offered to property owners who had not already paid the second installment of their property tax bill by April 10.
Many homeowners and small business owners facing financial hardship contacted county and state leaders in the weeks leading up to the April 10 deadline, which prompted many counties to waive interest and penalties on a case-by-case basis for those unable to pay on time due to illness or loss of employment caused by the pandemic.
A
FAQ sheet
was developed by the BOE to address common questions about property tax administration in California. If you need assistance with a property tax bill, a listing of all 58 county tax collectors' offices can be found on
my website
.
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Split Roll Informational Hearing Update
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Backers of the initiative to implement a split roll in California are
awaiting verification
of the 1.7 million signatures they recently submitted to the Secretary of State. The measure would require market-value reassessment of commercial and industrial properties.
An earlier version of split roll proposal qualified for the November 2018 ballot but was pulled due to acknowledged flaws in the language. An
updated initiative
—known as
The California Schools and Local Community Funding Act—
was introduced in September 2019. The new initiative needs 997,139 valid signatures to qualify for the November 2020 ballot.
Although it was necessary to cancel today's informational hearing on the split roll initiative, I still believe it is important to bring proponents, opponents, and other interested parties together for an in-depth discussion so voters can make an informed decision.
The new date for the informational hearing is July 23, 2020. It will be held in Sacramento. When available, more information can be found on
my website
. You may also
subscribe
to receive meeting agendas electronically when they are released to the public.
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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.
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Monthly Board Meeting: May 27-28, 2020 in Sacramento
Informational Hearing on Split Roll: July 23, 2020 in Sacramento
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