Taxpayers' Bill of Rights Hearing Responses to Presenters – 2022
Hearing Information
State Board of Equalization Taxpayers' Bill of Rights Hearing for 2022 (10:00 a.m.)
August 30, 2022 – Hearing
News Release on the 2022 Taxpayers' Bill of Rights Hearing
Public Service Announcement for the 2022 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 2020-2021.
Webcast for Meeting and Responses
Webcast
Webcast for Taxpayers' Bill of Rights Hearing:
Responses to Presenters
| Subject | Actions in Response to Presenters |
|---|---|
| Proposition 19 – Intergenerational Transfers (Parent/Child or Grandparent/Grandchild exclusion) – Concerns about only primary residence | In response to comments expressed about Proposition 19's intergenerational transfer exclusions not including property other than a person's principal or primary residence, the TRA explained that Proposition 19 was a voter approved initiative in November 2020 that amended the California Constitution with implementing legislation signed by the Governor on September 30, 2021. The constitutional amendment included provisions to allow exclusion for a principal residence that continues as the family home as well as a family farm, but it did not include provisions for other property such as a vacation home or rental property. The TRA explained that in order to allow exclusion from reassessment on properties that are not primary residences, such rental property, it would require a constitutional amendment. |
| Proposition 19 – Concerns about parent child exclusion value cap | In response to comments regarding the $1 million cap in Proposition 19 and its negative impact to families, the TRA explained that the voter-approved initiative included the dollar amount cap as to the maximum factored base year value that could be transferred but that the $1 million cap will be biennially adjusted for inflation. The TRA explained that in order to change or remove the cap, a constitutional amendment would be needed. |
| Proposition 19 – Seek repeal of Prop 19 – Request to reinstate Prop 58 & 193 |
In response to comments about Proposition 19 hurting families and expressing support for repealing Proposition 19 and to reinstate Proposition 58 and 193, the TRA explained that the intergenerational transfer provisions pertaining to the parent/child and grandparent/grandchild exclusion were part of Proposition 19 and approved by California voters in November 2020. The TRA indicated that we realize taxpayers have concerns with certain aspects of Proposition 19; and explained in order to change or repeal it, another constitutional amendment would be needed. |
| Delays in processing base year value transfer claims | In response to comments about delays in processing claims for base year value transfers, the TRA explained the steps involved by an Assessor's office in processing such claims and that certain claims could not processed until implementing legislation for Proposition 19 was signed by the Governor. The TRA explained that processing time is affected by workload in an Assessor's office and additional work is necessary when the original property and replacement property are in different counties. The TRA also coordinated with County Assessors' office where claims were indicated to have a significant delay from the filing date to confirm receipt of the claim and to obtain information on the status of its process. |
| Electronic Signatures on Property Statements Filing | In response to the presenter's comments about digital signatures and property statements with penalties being imposed when not signed by a wet signature, the TRA explained that the agency's Property Tax Department had issued LTA 2020/022 providing guidance on accepting electronically filed business property statements and other documents. The TRA Office coordinated with Assessors to ask about the reason for penalty application, its method of authentication for property statement filings, and use of bar codes and bin numbers. The TRA Office then explained to the tax agent that its office could obtain the Business Identification Number (BIN) from its client and include that number along with the Assessment Number on the property statement filing submitted to the Assessor's office and it would be considered a valid filing even if it did not contain the wet signature of the client. The BIN number along with the Assessment number would indicate the tax representative was authorized to file the property statement since the taxpayer would have provided it to the tax representative. The BIN is used for online filings and acts as a signature because it is specific to a taxpayer; the number is sent from the Assessor to the taxpayer each year. |
| Assessment Appeals Backlogs | In response to the concerns expressed by a presenter about the backlog of assessment appeals in some counties, the time it takes to issue refunds after an assessment appeals board decision, and their request to issue guidance supporting an increase in the number of informal hearings stipulating to resolve the issue, the TRA explained that workload is not an area our agency oversees with respect to appeals board or Assessors. The TRA explained that our agency's role in local assessment appeals is to prescribe property tax rules and issue instructional documents to assist appeals boards in the performance of their duties. |
| Proposition 13 and Inability of Retiree to Pay Property Taxes | In response to comments expressed about the presenter's thoughts that there was an erosion of protections given to homeowners by Proposition 13 and that people may not be able to pay property taxes into retirement, the TRA explained that Proposition 13 was passed by the voters in 1978 and it continues today. Explained the protections limiting the property tax rate to 1 percent plus local voter approved bonded indebtedness, and 2 percent cap on increases in the factored base year value unless there is a change in ownership or new construction. The TRA Office provided information on the Property Tax Postponement Program, available to seniors and disabled persons, offered through the State Controller's Office and provided the presenter with contact information in its office. |
| Public Access at Hearings | In response to comments from a concerned tax agent about public access to local assessment appeals board hearings in a specific county, the TRA explained that statutory and regulations provisions require hearings to be open, accessible, and audible to the public but when a portion of a hearing involves evidence regarding trade secrets that portion of the hearing may be closed to the public. The TRA office contacted the Assessor's Office to ask about their experience at the Assessment Appeals Board and they indicated its appraisers go into testify and then exit the hearing room since it isn't very big. The TRA office contacted the Clerk of the Board's office to ask about the county's policy on public access to county appeals board meetings. The Clerk's office advised that in person hearings were closed in March 2020 due to COVID and reopened for in-person hearing in July 2021; and due to its county's ongoing concern with spreading COVID, the small hearing room and AAB members that are over 60, the Board prefers the person to contact them to request attendance to ensure a 6-foot social distancing. |
| Taxpayer Education and Assessors Work with TRA | In response to comments made by the California Association President and Shasta County Assessor expressing appreciation, the TRA explained the Taxpayers' Rights Advocate Office is pleased to assist Assessors in their efforts to educate taxpayers through the issuance of Information Sheets. The Information Sheets provide simple, easy to understand information on various topics, including exclusions and exemptions topics. |
| Support from California Alliance of Taxpayer Advocates | In response to comments made by the Treasurer for the California Alliance of Taxpayer Advocates as to past work with the TRA office, the TRA expressed appreciation for its comments and look forward to working with them on any issues that there may be in the future relating to our agency's programs. |
| Alcoholic Beverage Tax and Other Taxes in California | In response to comments expressed by a presenter that several types of taxes are high in California, the TRA explained it could address the two tax programs that our agency administers. The TRA explained that the alcoholic beverage tax was not a tax charged to the consumers, rather it is a charge to the distributors, manufacturers, and importers of alcoholic beverages. The TRA explained that the property taxes are charged on a sailboat as personal property but the taxpayer may also be charged for possessory interest property taxes for its docking at a marina as a if the marina is owned by the government. |