Sacramento – Local governments are scheduled to receive $1.144 billion in tax revenue in the upcoming fiscal year due to the California State Board of Equalization's (BOE) assessment of privately owned public utilities and railroads. The values for these properties for Fiscal Year 2015-16 were set at $100.1 billion by a unanimous vote of the Board at its May 27, 2015 meeting in Sacramento.
Total values are $5.3 billion more than the $94.8 billion adopted by the Board last year, and will generate approximately $69 million more in taxes for local governments than in the current fiscal year. Values were set for 404 companies with property in California. They include telephone (long distance, local, and wireless), gas and electric companies, railroads, and inter-county pipelines.
While most properties are assessed by county officials, privately held public utilities throughout the state are assessed by the BOE. These properties are not subject to Proposition 13, and are reappraised annually at their market value.
A "unitary value" includes improvements, personal property, and land. A unitary valuation applies to properties owned or used by public utilities and railroads which are considered necessary to their operation.
The BOE determines the fair market value on January 1st of each year by considering market conditions, use of the property, income generated by the property, replacement costs, investments in the property, regulatory climate, depreciation, and other factors.
The values set by the BOE are used by county governments to levy local property taxes, which help support county governments, cities, special districts, and schools. Penalties are assessed for late or incomplete filings, or failure to file with the BOE.
Visit the BOE’s State-Assessed Properties Program for more information
The five-member California State Board of Equalization (BOE) is a publicly elected tax board that serves a significant role in the assessment and administration of property taxes.
Note: This news release may discuss complex tax laws and concepts. It may not address every situation, and is not considered written advice under Revenue and Taxation Code section 6596. 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. For specific help, please contact the BOE at 1-800-400-7115.
