TO: Board of Supervisors
FROM: Tracy A. Schulze - Auditor-Controller
REPORT BY: Brandon Morford - Property Tax Manager
SUBJECT: Authorization for the Auditor-Controller to process an Assessor Division assessment roll correction in excess of $10,000,000 limit permitted under Resolution No. 2013-137 (Revenue and Taxation Code Section 4831 et seq.).
RECOMMENDATION
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Authorize the Auditor-Controller to process an Assessor Division assessment roll correction for Assessor’s Parcel No. 032-030-061-000 that reduces the assessed value by $26,970,300 in tax year 2026-27. (Fiscal Impact: Various Funds Decrease Revenue, Mandatory)
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BACKGROUND
Revenue and Taxation Code Section 4835 requires consent of the Board of Supervisors for any roll corrections that will decrease the amount of unpaid taxes. Resolution No. 2013-137 authorizes the Auditor-Controller to perform, on behalf of the Board of Supervisors, corrections to the local assessment roll as set forth in Section 4831 et seq. of the Revenue and Taxation Code where the amount of the correction does not exceed ten million ($10,000,000) in assessed valuation. This item is for authorization to process a roll correction that exceeds that limit.
Per the County Assessor, a clerical error overstating the acreage of vineyard property on Assessor’s Parcel No. 032-030-061-000 from 1.8 acres to 531 acres resulted in the restricted value being overstated by $49,842,357. Because the resulting restricted value exceeded the Proposition 13 factored base year value, the parcel reverted to the Proposition 13 value for enrollment. The roll correction will reduce the enrolled value from $55,034,467 to $28,064,167 for a total reduction of $26,970,300 and will reduce the total amount of taxes due by $299,961 (see Attachment A for the revenue adjustment breakdown by taxing jurisdiction).
Requested Action: Authorize the Auditor-Controller to process an Assessor Division assessment roll correction due to clerical error to reduce the assessed valuation of Assessor’s Parcel No. 032-030-061-000 from $55,034,467 to $28,064,167 for a total reduction of $26,970,300.
FISCAL IMPACT
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Is there a Fiscal Impact? |
Yes |
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Is it currently budgeted? |
No |
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Is it Mandatory or Discretionary? |
Mandatory |
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Is the general fund affected? |
Yes |
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Future fiscal impact: |
An assessment roll decrease will affect future year’s tax revenues for the AB8 taxing entities and Ad Valorem taxing entities. |
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Consequences if not approved: |
Napa County Assessor is required to assess the fair market value of all land, improvements, fixtures, and personal property in the County. If this decrease is not made, such a requirement will not be met. |
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Additional Information |
Strategic Initiative: Elevate County Service and Workforce Excellence. |
ENVIRONMENTAL IMPACT
ENVIRONMENTAL DETERMINATION: The proposed action is not a project as defined by 14 California Code of Regulations 15378 (State CEQA Guidelines) and therefore CEQA is not applicable.