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, 2020-21, 2021-22, and 2022-23
RECOMMENDATION
title
Deny four (4) State assessed unitary property tax refund claims for return of 2019-20, 2020-21, 2021-22, and 2022-23 taxes paid on Assessor's Parcel No. 799-000-226 in accordance with Revenue and Taxation Code section 100 and Sections 5096 and 5097 (one Railroad company). (Fiscal Impact: $22,643.68 Revenue; Discretionary)
body
BACKGROUND
The Auditor-Controller's Office received four property tax refund claims from Ryan, LLC on behalf of California Northern Railroad (CFNR) for tax years 2019-20, 2020-21, 2021-22, and 2022-23. The claims state that the unitary property tax rate applied exceeds the rate allowed by the California Constitution and the Railroad Revitalization and Regulatory Reform Act of 1976 and seek refunds totaling $22,643.68 plus interest.
The claims challenge the state requirements for calculating unitary tax rates and state that CFNR is 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. The property tax rate applied to compute CFNR'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 CFNR's property taxes exceeded the rate allowed by Article XIIIA, section 1 of the California Constitution.
c. The property tax rate applied to compute CFNR's property taxes exceeds the rate allowed by the Railroad Revitalization and Regulatory Reform Act of 1976, 49 U.S.C. Section 11501(b)(3).
The Auditor-Controller's Office has followed all the requirements...
Click here for full text