Taxpayers' Bill of Rights Hearing Responses to Presenters – 2024

Hearing Information

State Board of Equalization Taxpayers' Bill of Rights Hearing for 2024 (10:00 a.m.)

August 27, 2024 – Hearing

News Release on the 2024 Taxpayers' Bill of Rights Hearing
Public Service Announcement for the 2024 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 2024 hearing date was the fiscal year 2022-2023.

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 (delays in hearing scheduled) In response to comments by a presenter about having to wait up to a year to get a hearing before the county Assessment Appeals Board (AAB) and that they shouldn't have to pay property taxes until the decision, the TRA explained that it can take time to have a hearing scheduled and the waiting time depends on each county's workload and in more populated areas, the waiting time can be longer. The TRA further explained the California State Board of Equalization's role in prescribing Property Tax Rules and issuing instructional documents to assist appeals boards in the performance of their duties but that our agency doesn't have oversight over a local county AAB. TRA also explained that property tax law provides for the due dates of property taxes and to change the law to provide for any type of exception, such as to exempt or delay the payment of property taxes until an AAB hears and decides on an appeal application, would require a change in law.
Assessment Appeals – Refund Delays In response to comments made by presenters about assessment appeals and delays in refunds, the TRA explained our agency's role in assessment appeals to prescribe rules and regulations for them and acknowledged the frustration taxpayers experience when they have to wait for a refund following an Assessment Appeals Board decision. TRA offered to examine data provided for properties where the AAB decided a reduction for the particular county of concern to see when the Assessor's office performed its work in processing the correction and transmitting it to the county Auditor's office.
After the Taxpayers' Bill of Rights hearing our agency's elected Board Members continued discussion about assessment appeal refund delays. The Executive Office conducted a survey with county officials for the 58 counties asking questions about process and time. The survey results were reported out to the Board Members at the February 2025 Board meeting. Following the report out the Board voted to establish a work group on County Assessor and Assessment Appeals issues, with the first meeting in April 2025.
Property tax system in need of reform In response to comments from a presenter that California property tax system is in need of reform and that the current system creates inequity with identical houses paying different amounts of property taxes, the TRA explained the property tax system has protections under Proposition 13. TRA explained that Proposition 13 passed by the voters in 1978 as a Constitutional amendment and Article XIII, Section A which limits increases to a property owner's assessed value. The TRA further explained that California's property tax system is an acquisition based system establishing a base year value that only increases up to 2 percent cap each year referred to as the property's factored base year value. Indicated that there can be disparities in the assessed value of identical houses, and as a result the amount of property taxes paid, because the owner bought the property at different times.
Proposition 13 support to keep In response to comments in favor of Proposition 13, 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 it limits the statewide property tax rate to 1 percent and allows additional rates to pay for voter-approved bond indebtedness and establishes a 2 percent cap on increases to a property's assessed value each year, specifically its factored base year value. Additionally, TRA indicated that any changes to California's property tax system under Proposition 13 would require a constitutional amendment.
Property tax rates In response to comments that property tax rates should be lowered and that vacant buildings should have higher tax rates, TRA explained that the property tax rate is fixed at 1 percent statewide tax rate plus the rate to cover locally approved bonded indebtedness. TRA further explained that the property tax rate is applied to a property's assessed value.
Proposition 19 – Seek repeal of Prop 19 (Intergenerational Transfer Exclusion) In response to comments about Proposition 19 not being favorable to taxpayers, TRA explained that the intergenerational transfer provisions do limit a taxpayer's ability to transfer certain properties to their children without increases in property taxes since the law no longer allows the parent/child exclusion on rental property and there is a value cap for the exclusion on the family home. The TRA indicated we understand the concerns with certain aspects of Proposition 19; and explained in order to change or repeal it, another constitutional amendment would be needed.
Electronic Signatures on Property Statements Filing In response to the presenter's comments about electronic signatures and AB 1879, the TRA explained that Revenue and Taxation Code section 441(k) allows County Assessors to accept property statement filing electronically and the types. Explained that our agency's Property Tax Department had issued LTA 2020/022 providing guidance about digital signatures that were authorized under the Government Code. The TRA further indicated that recently AB 1879 had passed and we would coordinate with the Property Tax Department about the issuance of an LTA regarding the change in law.
Disabled Veterans Exemption – expand it In response to the presenter's comments concerning the disabled veterans' exemption and interest in veterans with less than 100% disability qualifying, the TRA explained that the current law does require 100% disability rating but there is another criteria for employability. TRA further explained that there is a basic and low-income exemption for the disabled veterans exemption. TRA provided presenter with information on the statutory requirements and different criteria under which a disabled veteran could qualify for the property tax exemption.
Boat Assessments In response to comments about the assessed value and property taxes paid on boats, the TRA explained that for property tax purposes boats are assessed on its market value as of the January 1 lien date each year. Provided information to and directed commenters to various resources concerning California property taxation and assessment of boats.
Property Tax Bill – Size In response to comments made by a presenter seeking to increase the size of the property tax bill and more details, the TRA indicated we understood the size of the property tax bill can be difficult to read. The TRA further explained that although our agency doesn't have oversight over Tax Collectors, we were aware that the components of the property tax bills are in statute and the size is likely so it can be fit into a regular size envelope for mailing. Provided information about statutes and that the county Auditor's office would have information concerning bonds and where the money collected goes. The Board Member from that district offered to meet with presenter to discuss presenter's ideas further.
Taxpayer Education and Assistance to Taxpayers In response to comments made by the California Assessors' Association President and Sacramento County Assessor about the Taxpayers' Rights Advocate Office Information Sheets being helpful to taxpayers, the TRA explained we are pleased to educate taxpayers through the issuance of Information Sheets. The Information Sheets provide simple, easy to understand information on various topics.
Taxpayers' Rights Advocate Office – 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, and strong efforts toward explaining complex issues to taxpayers, the TRA expressed appreciation for its remarks.
Alcoholic beverage tax reporting In response to comments expressed by a presenter about the categories of reporting for wine being different for California than federal reporting, the TRA provided information about reporting requirements. The TRA explained that there is reporting by the gallon for certain categories of wine depending on alcohol content and that the alcoholic beverage tax is 20 cents a gallon for all wine regardless of alcohol content. TRA further explained that a statutory change would be required since the categories by certain percentages of alcohol in the wine are in the law for reporting on a per gallon distribution basis.
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, and explained we do not charge to have an account for the alcoholic beverage tax. The TRA explained that the alcoholic beverage tax is charged to distributors, manufacturers, and importers of alcoholic beverages. Further explained that the type of alcohol, including beer and wine, and rate is stated in the law. The TRA explained to change the per gallon tax rate would require a statutory change. The TRA also explained that for property tax purposes boats are assessed 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. Provided information to and directed taxpayer to various resources concerning property taxation of boats and the alcoholic beverage tax.