Taxpayers' Bill of Rights Hearing Responses to Presenters – 2023

Hearing Information

State Board of Equalization Taxpayers' Bill of Rights Hearing for 2023 (10:00 a.m.)

August 29, 2023 – Hearing

News Release on the 2023 Taxpayers' Bill of Rights Hearing
Public Service Announcement for the 2023 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 2023 hearing date was the fiscal year 2021-2022.

Webcast for Meeting and Responses

Webcast

Webcast for Taxpayers' Bill of Rights Hearing:

Responses to Presenters

Actions in Response to Presenters
Subject Actions in Response to Presenters
Assessment Appeals – Access to Information In response to comments regarding the commenter's concern that comparable sales information be provided prior to an appeal hearing, the TRA explained that the law allows a taxpayer to request information used in the assessment of their property regardless of whether or not an appeal has been filed under Revenue and Taxation Code section 408. The TRA also explained that if the Assessor introduces information or materials at an Assessment Appeals Board hearing that the assessee requested but was not given, or given incomplete information, in advance of the hearing, an assessee can request a continuance of the hearing for a reasonable time period so the assessee can review the information and that the appeals board must grant the continuance per RTC 408 subdivision (f).
Assessment Appeals – Decision In response to comments about an assessment appeals board decision being final and whether it can be reconsidered and reheard if the decision reflects a ministerial clerical error, the TRA provided information as to what defines clerical errors. The TRA explained such errors in the context of a base year value and what can be considered an error to amend a local appeals decision—typically for math or, mechanical errors and not involving judgement or discretion as to value. The TRA identified resources in our agency's Assessment Appeals Manual and Property Tax Rule 326, and also provided information on how comparable properties must be adjusted for their differences to the subject property with reference to Property Tax Rule 4 for elements of comparison.
Assessment Appeals – Outcomes (Statistics) In response to comments as to the availability of statistics on the outcome of Assessment Appeals Hearings for decisions in favor of the property owner, the TRA explained that our agency publishes information concerning assessment appeals as well as assessment roll data. Identified where the information can be found on BOE's website through the Open Data Portal. The TRA described the appeals statistics maintained as including the number of appeals heard with breakdown for those reduced, sustained, or increased, or resolved by stipulations and the number of applications that were invalid, withdrawn, and applicants with no shows.
Assessment Appeals – backlog Refunds In response to comments made by a presenter as to the backlog of appeals in a particular county, the TRA explained that our agency prescribes rules to assist assessment appeals boards in the performance of their duties when equalizing values, but our agency doesn't have oversight over a local county Assessment Appeals Board. TRA indicated were glad there was a working group, that the presenter's company was included in, in the county of presenter's concern that was set up by the Chamber of Commerce to improve various processes by county agencies. (Presenter said there had been a substantial reduction of unheard appeals.)
Proposition 13 and Erosion of Taxpayers' Rights In response to comments that the property tax protections of Proposition 13 may be in jeopardy, the TRA explained that Proposition 13 passed by the voters in 1978 as a Constitutional amendment and Article XIII, Section A continues to exist today. The TRA further explained that we were not aware of the passage of or any proposed constitutional amendment that would result in the repealing Proposition 13. As to comments about taxpayer rights being eroded, the TRA further explained that there are protections in the law for taxpayers in the Morgan Taxpayers' Bill of Rights provisions.
Assessment Increased More Than Two Percent/Year In response to the presenter's comments about his property's fluctuating assessments that increased and decreased over the years, the TRA explained the limitations of property tax law requiring real property to be assessed at the lower of its factored base year value or market value each year unless a change in ownership or new construction occurs. The TRA coordinated with the taxpayer to obtain information on the property and its assessment in order to analyze whether the property's assessments were made in accordance with the law.
Escape Assessments for New Construction In response to the presenter's comments expressing concern that escape assessments on a new construction building were made four years after completion with the property tax bills on all years due at one time creating financial hardship, The TRA coordinated with county agencies involved with property taxes about the timing of assessments and tax bills. The taxpayer was offered a four-year, interest free payment plan on taxes due.
Proposition 19 – Intergenerational Transfer In response to comments made by a presenter that it was not clear the homeowners' exemption needed to be filed within one year of the change in ownership when Proposition 19 was first implemented, so the rules should be modified to allow retroactive relief as well as prospective relief, the TRA explained that the one-year requirement was in the voter-approved ballot measure and in Proposition 19's implementing statutes. The TRA explained that our agency's Property Tax Rule 462.520 clarified that prospective relief would be available for the intergenerational exclusion (meaning between parents and children or in some cases between grandparents and grandchildren) beginning with the year the homeowners' exemption claim was filed thereby allowing a property to qualify for the exclusion.
Parent/Child Transfer Exclusion – Pre-Proposition 19 Notary Date Considered to Qualify In response to comments made by a presenter expressing her appreciation for the TRA Office's assistance in receiving the parent-child exclusion, the TRA indicated we were glad our past work was helpful. The TRA explained that we coordinated with the Assessor's office and provided information needed to accept the notary date of the deed transfer as the change in ownership date instead of the recording date (per LTA 2021/008), thereby allowing qualification for the parent/child exclusion under the law in effect before Proposition 19.
Electronic Signatures on Property Statements Filing In response to the presenter's comments about digital signatures and property statements, the TRA explained that our agency's Property Tax Department had issued LTA 2020/022 providing guidance on accepting electronically filed business property statements and other documents. The TRA explained the provisions of Revenue and Taxation Code section 441(k) that allows County Assessors to accept the filing of property statements through the use of electronic media with the Assessor deciding the types of electronic media and method of authentication. The TRA further indicated counties may differ in the technology they use. The TRA explained that the TRA office provided the presenter with a list of Assessors that used a particular software program for electronic property statement filings and notified the presenter about the availability of the California Assessors' Association online filing platform to file property statements electronically (SDR and ESDR). The TRA explained that the use of a BIN number was consistent in the electronic filing systems used by counties; and the BIN number, along with the property's account number, functioned as a signature which is a way to authenticate the filing.

The TRA agreed with presenter's thoughts that having the ability to file property statements electronically with a batch process would be helpful if there are multiple property statements, but it was not a procedure that the BOE could mandate to an Assessor's office since it is the decision of a County Assessor as to how they accept property statement filings. The TRA indicated we were supportive of the presenter going forward with discussions with California Assessors to discuss the possibility to have batch processing available and whether their software vendor could implement that.
Special Assessments – Fire Protection Charges In response to comments from a presenter about an increase in a county Fire Protection District, the TRA explained that special assessments, such as this charge, are not ad valorem property taxes based on the value of a property, but the county property tax bill is a mechanism to collect those charges. The TRA provided background information and resources on special assessments and suggested the commenter call the phone number listed for the Fire District on the tax bill to ask about the specifics of the increases.
Covid-related decreased business – Request Waiver on Outstanding Bills In response to presenter's concerns about the loss of customer business during Covid and the inability to pay some business's bills such as property tax, and the alcoholic beverage tax, The TRA explained that he could apply for a payment plan with the County Tax Collector for defaulted property taxes and that he could work out a payment plan for the Alcoholic and Beverage Tax and apply for penalty relief.
Taxpayer Education and Assessors Work with TRA In response to comments made by the California Assessors' Association President and Sacramento County Assessor expressing appreciation about the Taxpayers' Rights Advocate Office Information Sheets, 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 exclusion and exemption topics.
Support from California Alliance of Taxpayer Advocates In response to comments made by a representative of the California Alliance of Taxpayer Advocates as to outreach efforts and education to help local taxpayers, the TRA expressed appreciation for its remarks and recognized the importance of its organization.
Alcoholic and Other Taxes in California In response to comments expressed by a presenter about high taxes in California, the TRA provided information about the programs our agency administers. The TRA explained that in California the alcoholic beverage tax is charged to distributors, manufacturers, and importers of alcoholic beverages with the type of alcohol, including beer and wine, and rate stated in the law. The TRA explained to change the per gallon tax rate would require a statutory change. Explained that the property tax assessment for boats is based on its market value as of the January 1 lien date each year. Identified the appropriate agency for taxes that were not administered by our agency that presenter had concerns with.