Agenda

Return

C. 83

To:	Board of Supervisors
From:	Russell Watts, Treasurer-Tax Collector
Date:	November 6, 2018

Contra

Costa

County

Subject:

ADOPT Resolution No. 2018/551 implementing Revenue and Taxation Code section 5105 in the County for property tax refunds

APPROVE	OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR	RECOMMENDATION OF BOARD COMMITTEE

Action of Board On: 11/06/2018

APPROVED AS RECOMMENDED

OTHER

Clerks Notes:

VOTE OF SUPERVISORS

AYE:

John Gioia, District I Supervisor
Candace Andersen, District II Supervisor
Diane Burgis, District III Supervisor
Karen Mitchoff, District IV Supervisor
Federal D. Glover, District V Supervisor

Contact:

Brice Bins, (925) 957-2848

I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board of Supervisors on the date shown.
ATTESTED: November 6, 2018
David Twa,

BY:	, Deputy

RECOMMENDATION(S):

ADOPT Resolution No. 2018/551 implementing Revenue and Taxation Code section 5105 in the County for all property tax refunds that are not based on an underlying application for changed assessment, authorizing the Auditor-Controller to issue property tax refunds under five thousand dollars ($5,000) without a claim for refund in such cases, when there has been no transfer of the property during or since the fiscal year for which the taxes subject to refund were levied.

FISCAL IMPACT:

Adoption of the resolution is intended to reduce administrative costs required to process property tax refunds of less than $5,000, but may result in an increase in refunds.

BACKGROUND:

It is not uncommon for property tax payments to be duplicated or overpaid by a homeowner and/or lender, especially when an impound account exists. Property taxes are also sometimes overpaid because of a reduction in the assessed value of a property, or the special taxes or levies relating to the property after a property tax bill has been paid. In such cases, a property tax refund may be appropriate.

Property tax law generally requires that a refund only be made pursuant to a claim for refund. Senate Bill 1246, which adds Revenue and Taxation Code section 5105, effective January 1, 2019, allows refunds of under $5,000 to be issued without a claim for refund where there has been no transfer of the property during or since the fiscal year for which the taxes subject to the refund were levied. The board of supervisors of a county must adopt a resolution to implement the provisions of Section 5105.

Adoption of the Resolution will implement Revenue and Taxation Code section 5105 in the County, except where the refund of property taxes is connected with an underlying application for changed assessment. In such cases, claim for refund must be filed before property taxes may be refunded.

By streamlining the property tax refund process, implementation of Section 5105 allows the Auditor-Controller and the Treasurer-Tax Collector to expedite property tax refunds to taxpayers.

CONSEQUENCE OF NEGATIVE ACTION:

Failure to take the recommended action will prevent the County from recognizing the processing efficiencies that may be achieved through this new law.