RECOMMENDATION(S): (CONT'D)
ADOPT the report of the Auditor-Controller filed on January 19, 2021 of the 2019-2020 fiscal year property tax-related costs of the Assessor, Tax Collector, Auditor, and Assessment Appeals Board, including the proposed charges against each local jurisdiction excepting school entities, for the local jurisdiction's proportionate share of such administrative costs; and
ADOPT Resolution No. 2021/56 regarding the implementation of the property tax administrative cost recovery provisions of Revenue and Taxation Code section 95.3 for fiscal year 2020-2021.
FISCAL IMPACT:
The fiscal year 2019-2020 net cost of property tax administration was $17,599,506. This amounts to approximately 0.56% of all 2019-2020 property taxes levied countywide. This cost is allocated to each taxing entity in the County based on net revenues of each entity as a percentage of total revenues. School districts, community college districts, and the County Office of Education are exempt from cost recovery. As a result, the County absorbs the schools' share, which this year amounts to $8,436,409. The net recovery to the County is $7,079,355.
| Total cost of property tax administration |
$17,599,506 |
| Exempt School share of costs |
-$8,436,409 |
| County share of costs |
-$2,083,742 |
| Net recovery to the County |
$7,079,355 |
BACKGROUND:
In 1997, the Board adopted Resolution No. 97/129, which provides procedures for property tax administrative cost recovery. The recommended actions are necessary for implementation of Resolution No. 97/129 for the current fiscal year.
CONSEQUENCE OF NEGATIVE ACTION:
The County would not recover $7,079,355 in property tax administrative costs.