Taxpayers' Bill of Rights Hearing Responses to Presenters – 2020
Hearing Information
State Board of Equalization Taxpayers' Bill of Rights Hearing for 2020 (10:00 a.m.)
August 18, 2020 – Sacramento, CA
News Release on the 2020 Taxpayers' Bill of Rights Hearing
The hearing provided an opportunity for taxpayers, County Assessors, and other local agency representatives to provide comments on items discussed in the Taxpayers' Rights Advocate's Annual Report; and present ideas, concerns, and input on the quality of agency service related to the Board of Equalization's administration of its programs. At the hearing one could comment on the property tax programs administered by the State Board of Equalization or local county agencies statewide; as well as present ideas on legislation to further voluntary compliance or the relationship between government and taxpayers for the Alcoholic Beverage Tax. The hearing provided a venue for parties to identify ways to resolve any problems identified in the Taxpayers' Rights Advocate's current Annual Report; the current annual report for the August 2020 hearing date was the fiscal year 2018-2019.
Webcast for Meeting and Responses
Webcast
Webcast for Taxpayers' Bill of Rights Hearing:
Responses to Presenters
| Subject | Actions in Response to Presenters |
|---|---|
| Discretion to Disregard Deed | In response to comments regarding disagreement with the BOE's Legal Department's position that an assessor may determine that the owner whose name is on a deed may not be the beneficial owner of the property, the Taxpayers' Rights Advocate (TRA) explained that the TRA Office had worked with the presenters to address their concerns and coordinated with the Legal Department on its analysis. The TRA explained that the matter has been addressed but the presenters remain in disagreement with the legal position. The TRA indicated that the TRA Office is unable to do anything more for the presenters. The presenters' position differs from that of the Legal Department, but the matter has been re-reviewed and the Legal Department's position remains the same. The TRA indicated that the legal position is based on provisions of the Evidence Code and Civil Code, codes that are not within our agency's jurisdiction, and absent law changes, the Legal Department's position cannot change. |
| Possessory Interests | As to comments about a Special Topic Survey on the Assessment of Possessory Interests and stadium naming rights, the TRA explained that the TRA Office had worked with the presenter in the past on concerns about reporting and assessment of taxable possessory interests. The TRA indicated that the presenter's concern was about possessory interests, similar to concerns expressed in the past where the TRA Office provided written responses to the presenter addressing those concerns. The TRA Office indicated it would examine information in the special topic survey in the area of naming rights and guidance in that area. |
| Property Tax Bill Payments and Eviction of Seniors | In response to comments regarding a senior community in Orange County where its residents were not able to pay their property tax bill and that seniors were losing their homes, the TRA Office explained that the presenter had recently contacted the TRA Office and that it would look into the situation. The TRA office indicated it would conduct an analysis and determine how the concerns relate to the assessment and collection of property taxes under property tax law. The TRA Office conducted a comprehensive analysis and communicated the results of the review to the presenter. The TRA Office provided information to the presenter about the ownership structure in the senior community to enable the presenter to understand why the county tax collector could not issue property tax bills to the individual occupants of the homes in a stock cooperative housing community such as this one. The TRA Office also provided information on the laws requiring the assessor to assess the stock cooperative corporation for all the homes in the community, and tax collector to issue one property tax bill to the corporation. The TRA Office shared information with the presenter to enable the presenter to understand that occupants of the homes own a share of stock in the stock cooperative corporation rather than owning title to the home itself. The TRA analysis found that assessments are made correctly with tax bills issued to the appropriate party. The presenter's concerns are ultimately with the community's type of ownership, which is a structure allowed under a body of law outside of our agency's jurisdiction. |
| Nonprofit Exemptions | In response to comments regarding past work with the TRA Office on exemptions and nonprofit organizations, the TRA explained it had worked with presenter in the past to assist presenter in receiving the welfare exemption. The TRA indicated that it is important to help resolve exemption matters since nonprofit organizations provide such a valuable service to different communities in California. |
| Base Year Value Transfer Exclusion | In response to concerns expressed about not being able to meet the two-year time limit to buy a replacement home (or sell the original home) due to the Covid19 pandemic and shelter in place orders, the TRA explained the requirements of property tax law. Presenters asked for extension of the two-year deadline to transfer their base year value to a replacement home for persons age 55 or older under Revenue and Taxation Code section 69.5. The TRA indicated that its office had been contacted previously by taxpayers with such concerns and that the TRA Office examined the statutory provisions to see if there were any conditions available for extensions. The TRA explained its office found that the two-year time requirement was not only in statute but was in the California Constitution. The TRA explained that Section 2 of Article XIIIA of the California Constitution expressly provides that the replacement property be purchased or constructed within two years of the sale of the original property in order to have the original home's base year transferred to the replacement home. The TRA indicated that a Constitutional amendment would be needed to change the two-year deadline. |
| Appeal Hearings | In response to comments regarding appeal hearings and the suggestion that no live hearings be held in person during the pandemic, the TRA explained that local appeal hearings are conducted by each of the 58 California counties. The TRA also indicated that counties are looking at ways to handle appeals hearing to protect the public; and that later in the agenda there would be a discussion on remote hearings. |