The URL can be used to link to this page

Home My WebLink AboutMINUTES - 09242002 - SD5 SD.S THE BOARD OF SUPERVISORS OF CONTRA COSTA COUNTY, CALIFOR.NI Adopted this Order can September 24, 2002, by the following vete: AYES: Supervisors Uilkema, Gerber, DeSaulnier, Glover & Gioia NOES: None ABSENT: None ABSTAIN: None SUBJECT: Claim of Patrick and Isabel Kesler for refund of taxes for 1996 through 2000 tax years. RELINE® to October 1 , 2002 1 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: September 24,2002 John Sweeten, Clerk of the Board Of Supervisors and County Administrator By: 0 K� Deputy Clerk Contra TO.-, BOARD OF SUPERVISORS FROM; JOHN SWEETEN, County Administrator C'Orta DATE: SEPTEMBER 24, 2402 ou my b SUBJECT CLAIM OF PATRICK AND ISABEL KESLER FOR REFUND OF TAXES FOR 1996 THROUGH 2000 TAX YEARS SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION RECOMMENDATION; APPROVE claim of Patrick and Isabel Kesler for refund of taxes for 1996 through 2€700 tax years and DIRECT the Auditor-Controller to refund the overpayment of taxes plus statutory interest. BACKGROUND: On June 19, 2002, the County Administrator received the attached letter from Tad M. Heilig, CPA, on behalf on Patrick and Isabel Kesler, requesting that the Board of Supervisors instruct the Assessor to correct an alleged clerical error that impacted the tax roll values and to issue refunds plus statutory interest due to the Keslers,' County Counsel's investigation of the facts and circumstances of this situation indicate that the Kesler's 1996 transfer of property title to their children was incorrectly identified as a change in ownership, prompting a reassessment of the property. The laws governing this situation provide relief only for the year in which the matter was appealed and subsequent years, unless the appeal was made within three years from the property transfer. The Kesler's made their appeal, which was approved by the Assessment Appeals Board, two years after the three-year appeal,period expired. County Counsel has determined that under the applicable statutes, the Kesler's are not entitled to relief for periods prior to their appeal. At the Board's request on September 1,6, 2002, County Counsel reviewed the Revenue and Taxation Code to determine the extent of discretion that the Board of Supervisors may exercise in resolving claims made to it.. In the attached memo, County Counsel explains that the Revenue and Taxation Code contemplates issues of equity and provides a "claim for refund procedure"to allow compromising claims when the Board determines there is sufficient cause. Therefore, based upon the particular circumstances of the Kesler's appeal, approval is recommended: CONTINUED 014 ATTACHMENT: Z YES SIGNATURE: r ED RECOMMENDATION OF COUNTY ADMINISTRATOR ❑'RECOM ATION OF BOARD'COMMITTEE F)APPROVE ❑OTHER SIGNATURE(S): ACTION OF BOARD ON APPROVED AS RECOMMENDED ❑ OTHER'El VOTE OF SUPERVISORS I HEREBY CERTIFY THAT THIS IS A TRUE' AND CORRECT COPY OF AN ACTION TAKEN AND UNANIMOUS{ABSENT 1 ENTERED ON THE MINUTES OF THE BOARD OF AYES: NOES: SUPERVISORS ON THE DATE SHOWN.' ABSENT: ABSTAIN: ATTESTED Contact: JOHN SWEETEN,CLERK OF THE BOARD OF SUPERVISORS AND COUNTY ADMINISTRATOR cc: Supervisor Gerber Assessor County Counsel County Administrator By: Deputy Tad M.Hellig,CPA, 939 Hartz way,Ste 106,Danville,CA 94526 Officeof the County Counsel Contra Costa County 651 Pine Street, 9th Floor Phone: (925)335-1800 Martinez, CA 94553 Fax: (925)646-1078 Date July 30, 2002 To: Jahn Sweeten, County Administrator From Silvano Marchesi, County Counsel By: Dennis Graves, Senior Financial C l Ra 6/19/02 Letter of Tad Heilig, CPA, on behalf of Patrick'and Isabel Kesler, APN 208-110-007 You recently forwarded the subject letter to this Office, asking us to comment on the Keslers' request for refund of taxes back to 1996. Although not specifically denominated' as a refund claim, Mr. Heilig evidently intends that the letter be treated as a formal claim for refund to the Board of Supervisors. (R+TC Sec. 5096.) Since Mr. Heilig's letter includes little background, we have asked the Assessor to inform us as to the details of this case. The following analysis is based upon that information and the limited information in the Kesler claim The issue arose in February of 1996, at which time there was a transfer between parents (the Keslers) and one of their children in order to protect against creditors of the parents. The taxpayer having provided incomplete information, it appeared to the Assessor that a change of ownership had occurred, and the property was reassessed. Several years later-- in 2001 — the Keslers filed assessment appeals board applications asserting that the 1996 event was not a change of ownership. In 2002, the appeals board agreed with the Keslers, ruling that the 1996 transfer was not change of ownership. There are a number of cede sections that potentially apply when administering requests for corrections to assessed values in various circumstances, and it is sometimes confusing as to which might apply in a given situation. Revenue and Taxation Code Section 63.1 specifically addresses requests for relief in situations of parent-child transfers. Under Subsection (e)(1') thereof, the Keslers should have requested relief within 3 years (no later than 1999) if they were to be granted refunds back to the 1996 year in which the event in question occurred.` Subsection (e)(2){A} thereof provides that, under the circumstances of delaying their request until 2001, the Keslers cannot be given relief for years prior to that year. This is consistent with Revenue and Taxation Cade Section 80, which is the section 1 generally applicable to assessment appeals board determinations on such issues. Subsection 80(a)(5)thereof specifies that a reduction in base year value by an assessment appeals board shell apply for the year in which the matter is appealed and years subsequent thereto. In the present case, that would be for 2001 and subsequent years. We conclude that refunds should be allowed only for the,years 2001 and subsequent. Since the Assessor has already processed the paperwork for such refunds, the claim for relief prior to 2001 should be denied by the Board. we recommend a consent item em as follows: "Deny claim of Patrick and Isabel Kesler for refund of taxes for 1966 through 2000 tax years." cc: Supervisor Donna Gerber Gus Kramer,Assessor Attn: Steve Dawkins, Asst. Assessor CONTRA COSTA COUNTY RECEIVED C:kesler.doc-3 2 _ Tai M. Heffig Certified Public Accountant June 19, 2042 Mr. John Sweeten, Clerk and County Administrator Contra Costa County 'Board of Supervisors> 651. Pine Street Martinez, CA 94553 REGISTERED RETURN RECEIPT Re: Patrick '& .IsabelKesler Appeal Application Number 200,1-1.98 through 202 Dear Mr. Sweeten, In accordance with the instructions by Donna Gerber' s Staff, l am 'respectfully requesting you to schedule the Board of Supervisors to take the following action: ACTION REQUESTED InstructOffice of the Assessor to recalculate tax rolls for the 'years 1996. 1997, 1998, 1999 and 2000 to correct a clerical error and request the Auditor/Controller' s Office to 'issue refunds plus statutory ,interest due. FACTS AND CIRCUMSTANCES 1 . Assessor' s office agrees 'refunds are due but state, they do not have authorization or procedure (s) to process . 2 . They have, however, corrected the 2001 roll and all rolls thereafter. SUPPORTING DOCUMENTATION Attached for your reference is the following: 1. . Copy of the Assessment Appeals Board decision (legal issue`) finding no change in ownership occurred on February 13, 1996 . 939'Hartz'Way (925) 820-6848 Suite 106 Fax; (925)831-9189 Danville, CA 94526 Email:tmhcpa@aol.com 2. Copy of letter form Assessor' sOffice correcting (2001 and forward only) for the "clerical error" 3. Copy of Revenue and Taxation Code 5096 (b) , stating "Any taxes ,paid before or after delinquency shall be refunded if they were erroneously or illegally collected" (Clerical -error substantiated and agreed to) . 4 . The refund and related interest is to be computed under Section 51:.51 .(c') (1) , 5151 (A) , and 5151 (B) (Copy attached) .. ' Since I am the property owner's authorized representative, it is requested all calculations, documents and other requests be sent directly to my office. They are elderly and temporarily living in Bakersfield California for health reasons . Thank you in advance for your assistance in this matter. Sincerely, Tad M. Heilig TMH/as Enclosures cc: Donna Gerber District' III Supervisor Office of the Assessor, w/o encl. Auditor/Controllers office= w/o encl. H. Alan Huovinen, Esq. , w/o encl. Client, w/o encl.