For Immediate Release
May 24, 2022
Contact: Peter Kim
BOE Adopts $136.3 Billion in Assessed Property Values for Fiscal Year 2022-23
Schools and Local Communities Set to Receive $2.16 Billion
Sacramento – Today, the California State Board of Equalization (BOE) unanimously adopted the $136.3 billion in assessed property values of 339 companies within California, which include telephone, gas, and electric companies, independent power producers, regulated railroads, and intercounty pipelines. In the upcoming fiscal year, schools and local communities statewide will receive a total of approximately $2.16 billion in property tax revenue resulting from the Board exercising one of its core constitutional functions.
“One of the most critical functions the BOE performs annually is adopting property values assessed by the state,” said BOE Chair Malia M. Cohen. “California's schools and local communities will directly benefit due to the BOE's essential work and expertise.”
Whereas most property in California is assessed by County Assessors, the BOE is constitutionally assigned to directly assess certain public utilities, regulated railroads, and intercounty pipelines throughout the state. Also, these properties are not subject to Proposition 13, and the BOE must annually determine the fair market value of the unitary property that includes improvements, personal property, and land. The BOE develops the fair market value by considering market conditions, use of and income generated by the property, replacement costs, investments in the property, regulatory climate, depreciation, and other factors as of the January 1 lien date.
For fiscal year 2022-23, there was a 7.8% increase in the total value from last year in the amount of $9.9 billion which will generate approximately more than $156 million additional tax dollars. County governments will use the values set by the BOE to levy the local property taxes.
The California State Board of Equalization (BOE) is the only elected tax board in the country, and it is comprised of four Equalization District Members and the State Controller. Since 1879, the BOE's constitutional and statutory duties include the oversight of the 58 County Assessors to ensure assessment practices are uniform and consistent statewide. In addition, the BOE directly assesses the property of regulated railroads and certain public utilities, collects the Private Railroad Car Tax, and is responsible for the Alcoholic Beverage Tax and Tax on Insurers. BOE's critical role in property tax administration by promoting fair and equitable assessments protects the tax dollars that schools, local communities, and the State of California depend on every day.