GAINES GAZETTE

March 2023

March Board Actions

During the March Board meeting, we reviewed audits, land escaped assessments, and Board Roll changes. We received operational updates from the Executive Director, the Taxpayers’ Rights Advocate Office, the Property Tax Department Deputy Director, and the acting Legislative, Research & Statistics Division Chief.

We also discussed 2023 economic trends and potential impacts on property tax assessment and valuation, which included a presentation from Los Angeles County Assistant Assessor Scott Thornberry, California Association of Realtors Economist Oscar Wei, and others on current and anticipated real estate market conditions and potential challenges from rising interest rates, commercial vacancy rates, relevant state and local policy initiatives and other factors.

Finally, we received an overview and held a robust discussion on proposed 2023 affordable housing legislation.

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.

Cal Tax's 97th Annual Meeting

Thanks to the California Taxpayers Association for having me and my fellow Board Members at their 97th Annual Meeting. We had a great discussion on California tax policy and ways to make government more transparent, efficient and fair for taxpayers.

BOE Adjusts Prop. 19 $1 Million

Intergenerational Transfer Exclusion Amount

The BOE released the new amount adjusting the $1 million exclusion for Proposition 19 intergenerational transfers occurring on February 16, 2023, through February 15, 2025. The BOE is required to calculate and publish the adjustment every other year based on the Federal Housing Finance Agency's House Price Index for California. This is the first adjustment since the passage of Proposition 19 in November 2020, and the amount increased by 2.26 percent to $1,022,600.

The 2.26 percent increase will provide additional tax savings to those who transfer their home or family farm to their children or grandchildren.

Proposition 19 only allows for a principal residence or a family farm to be transferred between a parent and a child or between a grandparent and a grandchild, where the grandchild’s parents are deceased without a property tax increase up to a certain value if the property continues to be the principal residence or the family farm of the transferee. The excludable amount is capped equal to the principal residence or family farm’s taxable value at the time of transfer plus $1,022,600. As part of the requirements, the transferee must apply for the homeowners' or disabled veterans' exemption within one year of the purchase or transfer of the family home or farm.

The notice to County Assessors was issued in Letter to Assessors No. 2023/012. For the latest information on Proposition 19, please visit the BOE website. 

Lawmakers Propose Raising Taxes & Fees by Billions

According to a new report from the California Tax Foundation, in the opening months of the 2023-24 legislative session, state lawmakers proposed raising annual taxes and fees more than $185.6 billion..

The foundation’s Tax and Fee Report tallies 38 proposals with higher taxes or fees. With fiscal estimates still being prepared, the cost to taxpayers has been quantified for only seven of the measures so far, for a cumulative total of $185.6 billion a year in additional taxes if all were approved.

The state’s operating deficit “could increase the likelihood that lawmakers propose more taxes and fees as the session continues,” the report notes.

The Tax and Fee Report is a regular publication of the California Tax Foundation, updated throughout the year to reflect new legislative proposals. The report includes any measure estimated to cost $1 million or more per year in higher taxes or fees.

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: April 26, 2023

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