GAINES GAZETTE
May 2021
Memorial Day is a time to remember those who made the ultimate sacrifice to defend our freedom. As we honor the valor and courage of the brave men and women who have given their lives protecting our nation, let us never forget the price that was paid for the liberties we enjoy today.
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The Governor's Revised Budget |
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Governor Newsom will soon release his May Revision, an update to the proposed budget that was released in January and anticipated the state would collect $120.5 billion in tax revenue during the first nine months of the current fiscal year.
The Department of Finance's April Bulletin reported that the state has collected $16.7 billion more than that projection. This amount is in addition to the $26 billion in pandemic-related federal funds allocated to California. This unexpected windfall puts lawmakers in a much better position as they began fine-tuning a budget bill for passage by the June 15 deadline.
One thing is certain, with this incredible amount of surplus revenue, there should be absolutely no need to raise taxes or fees on hardworking California families.
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David Yeung, Deputy Director of the Property Tax Department, reported that staff is working to develop a program that will track property transfers. This is needed to administer the Proposition 19 provision that allows eligible homeowners to transfer their base year value up to three times.
Chief Deputy Director Lisa Renati reported that there was a 6.5 percent increase in property tax revenue in the 2019-20 fiscal year. The data can be found in the BOE’s 2019-2020 Annual Report, which notes that in 2020 the value of locally assessed property was $6.8 trillion—up from $6.4 trillion in 2019. The report also shows that out of the $75.4 billion in property tax revenue collected, $40.5 billion went to schools (up from $38.1 billion the prior year) and $34.9 billion went to local government (up from $32.7 billion).
We are proud as a Board to continue meeting our constitutional duties using various virtual platforms, 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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California voters passed Proposition 19 last November and the measure is now fully effective. Although the implementation timeline was tight, Board Members have been working closely with BOE staff, County Assessors, and the Legislature to get as much clarification on the measure as possible.
Currently, the BOE is monitoring two bills making their way through the state Legislature:
Senate Bill 539 (Hertzberg) will help clarify many vague and inconsistent provisions of the law. The bill was approved by a Senate committee on March 8 and is now awaiting a vote in the full Senate.
Senate Bill 668 (Bates) will delay the implementation date of the intergenerational transfer exclusion provisions to February 16, 2023, giving officials more time to clarify ambiguities in the new law. The bill is scheduled to be heard in the Senate Governance and Finance Committee on May 6 and I will be providing testimony in support of the measure.
While these bills make their way through the legislative process. The BOE will continue to update its Proposition 19 guidance. These updates can be found on my website.
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The Silver Lining of Prop 19 |
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The following is an excerpt from my latest opinion piece commenting on the tax benefits of Prop 19:
While Proposition 19 has some serious shortcomings—increasing taxes on tens of thousands of California families and making it more difficult and expensive to pass on property and family farms to your children and grandchildren—it does offer noteworthy tax benefits to homeowners who are nearing retirement, severely disabled or victims of natural disasters.
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The California Tax Foundation has released its fifth edition of California Tax Facts: An Overview of the Golden State’s Tax Structure. One interesting fact that stood out but is not surprising: the top 5% of earners pay 67.2% of the state’s total personal income tax revenue (up from 66.6% two years earlier).
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Established in 1956, National Bike Month is a chance to showcase the many benefits of bicycling—and encourage more folks to give biking a try. Many communities across the country offer Bike Month Challenges that promote biking and encourage friendly competition between communities and workplaces to get coworkers, friends, and families riding their bikes.
Enjoy the ride!
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On April 5, Baldy View ROP held its annual Student Success Awards ceremony, during which many outstanding students enrolled in Career Technical Education (CTE) classes were recognized.
CTE course instructors and community classroom (internship) supervisors worked together to award students who demonstrated professionalism, leadership abilities, and team building skills.
This year, I was pleased to acknowledge 110 students with a Student Success Award. I’m a strong supporter of CTE programs because they blend academic, technical, and occupational knowledge, giving students a clear pathway to excellent careers after high school. I wish each student much success as they enter the working world!
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On May 1, The Shasta Damboree’s Community Awards Banquet recognized volunteers, service workers, city workers, educators, first responders, and businesses who work hard to make the community a more enjoyable place to live and work.
I was delighted to award 12 resolutions in recognition of outstanding and dedicated service to the city and community.
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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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