For Immediate Release
July 27, 2022
Contact: Regina Evans
Statement of Board of Equalization Chair Malia M. Cohen on the July 27, 2022 Property Tax Abatement Workgroup Meeting
Sacramento – Today, the California State Board of Equalization (BOE) held the first of at least three public Property Tax Abatement Workgroup meetings. The Board received presentations from policy experts and stakeholders on the development of new housing, focusing on how to best address the need to build 2.5 million new housing units to address California's housing gap, including how to provide new housing opportunities for the "missing middle."
“As Chair of the Board of Equalization, which administers California's $85 billion property tax system, I am deeply encouraged by today's discussion with housing policy experts. The presentations of these experts both highlighted the reality of our housing crisis, associated equity issues, and the opportunity to address the development of new housing through creative and innovative solutions,” said Chair Malia M. Cohen.
“Today's meeting focused on property tax abatements as a tool to incentivize new housing construction and increase the inventory of affordable housing. Property tax abatements have been used before, particularly in New York City, to build tens of thousands of new housing units to address the housing needs of the ‘missing middle’. It makes sense to consider whether similar property tax abatement strategies could work in California,” concluded Chair Cohen.
In upcoming meetings of the Property Tax Abatement Workgroup, the BOE will examine strategies to ensure that revenue for schools and local governments are protected under any property tax abatement programs. The BOE will also explore how local government, labor, businesses, and developers can work collaboratively to build new housing under such abatement programs.
The BOE will hold additional meetings of the Property Tax Abatement Workgroup at the Board's upcoming August 31st and September 28th Board Meetings. At the conclusion of the BOE's Property Tax Abatement Workgroup, the Board will issue a report.
The agenda of the July 27, 2022 meeting of the Property Tax Abatement Workgroup can be found on the BOE website.
State Board of Equalization Chair Malia M. Cohen represents nearly 10 million constituents residing in 23 counties in Northern and Central California, extending from Del Norte County in the north to Santa Barbara County in the south. Board Chair Cohen is the youngest Constitutional Officer serving in California.
The Board of Equalization is California's statewide elected tax board. Its five members include four members elected in districts, and the State Controller. Under its constitutional mandate, the BOE oversees the assessment practices of the state's 58 county assessors, who are charged with establishing values for approximately 13.6 million assessments each year. In addition, the BOE assesses the property of regulated railroads and specific public utilities, and is responsible for the alcoholic beverage tax and tax on insurers.
Note: This news release may discuss complex tax laws and concepts. It may not address every situation and is not considered written advice. Changes in law or regulations may have occurred since the time this news release was written. If there is a conflict between the text of this news release and the law, decisions will be based upon the law and not this news release.