1        BEFORE THE CALIFORNIA STATE BOARD OF EQUALIZATION

            2                         450 N STREET

            3                    SACRAMENTO, CALIFORNIA

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            9                    REPORTER'S TRANSCRIPT

           10                         MAY 23, 2017

           11               (Prepared from audio recording)

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           15                            ITEM P

           16                OTHER ADMINISTRATIVE MATTERS 

           17                           ITEM P5

           18            PROPERTY TAX DEPUTY DIRECTOR'S REPORT

           19          1. ADOPTION OF 4-R ACT EQUALIZATION RATIO 

           20                   FOR FISCAL YEAR 2017-'18

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           27                      REPORTED BY:  Jillian M. Sumner

           28                                    CSR NO. 13619 




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            1                        P R E S E N T

            2    For the Board              
                 of Equalization:           Diane L. Harkey
            3                               Chair
                                            
            4                               Fiona Ma, CPA 
                                            Member
            5    
                                            Sen. George Runner (Ret.)
            6                               Member
                 
            7                               Yvette Stowers 
                                            Appearing for Betty T. 
            8                               Yee, State Controller 
                                            (per Government Code 
            9                               Section 7.9)
                 
           10                               Joann Richmond 
                                            Chief 
           11                               Board Proceedings      
                                            Division
           12    
                 
           13    For Board of 
                 Equalization Staff:        Mark Durham
           14                               Chief
                                            Research & Statistics 
           15                               Section
                 
           16    
                 
           17                          ---oOo---

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            1                               450 N STREET

            2                               SACRAMENTO, CALIFORNIA

            3                               MAY 23, 2017

            4                           ---oOo---

            5             MS. RICHMOND:  Our next item is P5, Property 

            6    Tax Deputy Director's Report; Item P5.1 is the 

            7    Adoption of 4-R Act Equalization Ratio for Fiscal 

            8    Year 2017-'18.

            9             MS. HARKEY:  Okay.  Mr. Harris -- is that 

           10    right?  No.  I have Mr. Harris, but, no, this is not 

           11    Mr. Harris.

           12             MR. DURHAM:  He was going to fill in for me. 

           13             MS. HARKEY:  Okay.  You got your reward.

           14             MR. DURHAM:  Exactly.

           15             So hello, Chairwoman and Members of the 

           16    Board.  I'm Mark Durham with the Research and 

           17    Statistics Section.  

           18             The item before you today is 4-R Act 

           19    Equalization Ratio.  The four Rs stand for Railroad 

           20    Revitalization and Regulatory Reform Act that was 

           21    enacted by Congress in 1976.  

           22             Revenue and Taxation Code Section 1817 

           23    requires the Board to conduct a study and determine 

           24    the statewide and county-by-county ratio of assessed 

           25    value to fair market value of commercial and 

           26    industrial property.  

           27             Staff conducted this study using the 

           28    2015-'16 property role in the yielded and estimated 




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            1    statewide ratio of 64.17 percent.  This is a decrease 

            2    of 2.73 percent from last year's 66.90 percent.  The 

            3    continued downward trend's reflective of a recovery 

            4    commercial market.  Therefore, staff recommends the 

            5    Board assess rail transportation property at 64.17 

            6    percent, the market value -- of the market value for 

            7    the 2017-'18 role.  

            8             MS. HARKEY:  Thank you.  

            9             Members, any comments?  No?  

           10             Is there a motion?  

           11             MR. RUNNER:  Move to adopt.  

           12             MR. HORTON:  Second.  

           13             MS. HARKEY:  Okay.  Any objection?  No? 

           14             Okay.  Member Runner and Member Horton, and 

           15    no objection.  Such will be the order.  

           16             MR. DURHAM:  Great.  Thank you.  

           17             MS. HARKEY:  Thank you.

           18                           ---oOo---

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            1                     REPORTER'S CERTIFICATE

            2    

            3    State of California    )

            4                           )  ss

            5    County of Sacramento   )

            6    

            7             I, Jillian Sumner, Hearing Reporter for 

            8    the California State Board of Equalization certify 

            9    that from May 23, 2017 audio, I recorded verbatim, in 

           10    shorthand, to the best of my ability, the proceedings 

           11    in the above-entitled hearing; that I 

           12    transcribed the shorthand writing into typewriting; 

           13    and that the preceding pages 1 through 4 

           14    constitute a complete and accurate transcription of 

           15    the shorthand writing.

           16    

           17    Dated:  May 9, 2018

           18    

           19    

           20                           ____________________________

           21                           JILLIAN SUMNER, CSR #13619

           22                           Hearing Reporter

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