TO: Board of Supervisors
FROM: Tracy A. Schulze - Auditor-Controller
REPORT BY: Jobina Toh - Assistant Auditor-Controller
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
title
Request authorization for the Auditor-Controller to process an Assessor Division assessment roll correction for Assessor Parcel Number (APN) 031-020-007-000 tax years 2022, 2023 and 2024 in the amount of $39,621,294 for underassessed business property and a penalty for late filing in 2022. (Fiscal Impact: Various Funds Increase Revenue, Mandatory)
body
BACKGROUND
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 Revenue and Taxation Code where the amount of the correction does not exceed ten million ($10,000,000) in assessed valuation.
The County Assessor has submitted roll corrections to the Auditor-Controller that exceed the authorized $10,000,000 limit. The roll corrections for APN 031-020-007-000 cover three tax years 2022, 2023, and 2024 and increase the business property roll values for a total correction, including penalties of $39,621,294.
This correction was caused by a combination of reporting errors by the property owner and processing errors by assessor staff resulting in an underassessment of winery tanks and equipment. In addition, the County Assessor did not receive the required business property statement in assessment year 2022 which led to a penalty. A penalty under California Revenue and Taxation Code Section 463 was applied by the Assessor to the original (prior to audit) escaped assessment for the 2022 roll year. During the audit, which resulted in the additional large escape assessments, it was discovered that the original 10% ...
Click here for full text