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 claim for Tax Year 2020-21
RECOMMENDATION
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Deny State assessed unitary property tax refund claim for return of 2020-21 taxes paid on Assessor Parcel No. 799-000-161-000 in accordance with Revenue and Taxation Code section 100 and Sections 5096 and 5097 (Utility company). (No Fiscal Impact)
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BACKGROUND
The Auditor-Controller's Office has received property tax refund claim from unitary property owner (PG&E) for paid 2020-21 taxes. The property owner's claim states the unitary property tax rate is in excess of the rate allowed by the California Constitution and have requested a refund of $3,269,775 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 establishment and calculation of the unitary tax rate for tax year 2020-21. The unitary tax rate process has been previously audited by the State Controller's Office and deemed calculated in complian...
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