Taxpayers' Bill of Rights Hearing Responses to Presenters – 2021
Hearing Information
State Board of Equalization Taxpayers' Bill of Rights Hearing for 2021 (10:00 a.m.)
August 24, 2021 – Virtual Hearing
News Release on the 2021 Taxpayers' Bill of Rights Hearing
Public Service Announcement for the 2021 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 2021 hearing date was the fiscal year 2019-2020.
Webcast for Meeting and Responses
Webcast
Webcast for Taxpayers' Bill of Rights Hearing:
Responses to Presenters
| Subject | Actions in Response to Presenters |
|---|---|
| Base Year Value Transfers for Persons Age 55 and Over | In response to comments about information disseminated in a property tax rule on base year value transfers being contrary to Proposition 19, the Taxpayers' Rights Advocate (TRA) provided information to help the presenter understand Proposition 19’s effective dates. The TRA explained the significance of the April 1, 2021 effective date and that one or both events (the sale of the original or purchase of the replacement) must occur on or after April 1, 2021 to qualify for a base year value transfer under Proposition 19. The TRA office explained that waiting to file a base year value transfer claim until after April 1, 2021 would not change the qualification eligibility because the date that the claim is filed is not the transfer event date. The TRA further explained that the presenter could qualify for a base year value transfer if the presenter chooses to purchase a different replacement home within two years of the sale of the original so at least one of the events occurred on or after April 1, 2021. |
| Nonprofit Exemptions | In response to comments expressed by presenters regarding past work with the TRA Office for two nonprofit organizations, the TRA explained it had worked with the presenters to assist the organizations in receiving an Organizational Clearance Certificate or the welfare exemption on its property. The TRA explained that the TRA Office had coordinated with various agencies to resolve the exemption issues and would continue to assist one of the organizations to resolve its outstanding issues for prior years. After working with the TRA Office to submit necessary documentation, roll corrections were made by the County Assessor's office with refunds were issued for several years. The TRA indicated the importance to help resolve exemption matters since nonprofit organizations provide a valuable service to the community. |
| General Property Taxation | In response to comments expressed about the presenter's thoughts that a property owner's income or ability to pay should be considered for property tax increases, the TRA Office provided information to the presenter on California’s property tax system under Proposition 13 for increases in assessed value as to the maximum 2 percent per year. The TRA Office provided information about existing exemptions available under the law to persons based on income, such as the disabled veterans' exemption. And explained that constitutional and statutory changes would be needed to allow for further exemptions. |
| Intergenerational Transfers (Parent/Child or Grandparent/Grandchild) |
In response to comments regarding the $1 million cap in Proposition 19 and its impact to families and farms, the TRA explained that the voter-approved initiative included the dollar cap as to the maximum factored base year value that could be transferred. The TRA explained that in order to change or remove the cap, a constitutional amendment would be needed. |
| Change in Ownership | In response to comments expressed by the presenter for past work with the TRA Office, the TRA indicated it had worked with the presenter to assist the presenter on the reversal of his property reassessment following recording of rescission deeds for a prior transfer. The TRA explained that the TRA Office coordinated with the presenter and Assessor’s office to furnish the necessary information on the trust needed to restore the factored base year value prior to the reassessment for the change in ownership. |