TO: Board of Supervisors
FROM: Tracy A. Schulze - Auditor-Controller
REPORT BY: Edward Brown - Accountant-Auditor I
SUBJECT: Authorization for the Auditor-Controller to deny State assessed unitary property tax refund claims for Tax Years 2019-20 and 2021-22
RECOMMENDATION
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Deny three (3) State assessed unitary property tax refund claims for return of 2019-20 taxes paid on Assessor Parcel No. 799-000-161 and 2021-22 taxes paid on Assessor Parcel Nos. 799-000-162 and 799-000-218 in accordance with Revenue and Taxation Code section 100 and Sections 5096 and 5097 (two Telecom, one Utility company). (Fiscal Impact: $3,353,653 Revenue; Discretionary)
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BACKGROUND
The Auditor-Controller's Office has received three property tax refund claims from unitary property owners (AT&T, Pacific Bell, and PG&E) for paid 2019-20 and 2021-22 taxes. The property owners' claim states the unitary property tax rate is in excess of the rate allowed by the California Constitution and have requested a refund of $3,353,653 plus interest.
The claimants have challenged the State requirements and state they are entitled to a partial refund on the grounds the taxes were erroneously or illegally collected, or illegally assessed or levied and gave the following reasons:
a. Property tax rate applied to compute claimant's property taxes was in excess of the rate applied in the same year to property in the county assessed by the assessor of Napa County, in violation of Article XIII, Section 19 of the California Constitution.
b. The property tax rate applied to compute claimant's property taxes exceeded the rate allowed by Article XIIIA, Section 1 of the California Constitution.
c. The property tax assessment violates the Equal Protection Clause of the United States Constitution.
d. The property tax collected exceeds the amount allowed by Proposition 13.
The Auditor-Controller's Office has followed all the requirements of the Revenue and Taxation Code Section 100 directing the est...
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