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HomeMy WebLinkAboutMINUTES - 11122002 - SD9 Sul ContraTO: BOARD OF SUPERVISORS FROM: JOHN SWEETEN, County Administrator Costa DATE: NOVEMBER 12, 2002 County 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: DENY claim of Patrick and Isabel Kesler for refund of taxes for 1996 through 2000 tax years, pursuant to Revenue and Taxation Code Sections 88.1 and 80. 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. The Assessment Appeals Board determined that the Kesler's 1996 transfer of property title from the Kesler's to their children was incorrectly identified as a change in ownership, prompting a reassessment of the property. Revenue and Taxation Code Sections 63.1 and 80 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 two years after the three-year appeal period expired. County Counsel has determined that under these statutes, the Kesler's are not entitled to relief for periods prior to their appeal. At the Board's request on September 16, 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. County Counsel advised the Board on October 1, 2002 that the Revenue and Taxation Code provides a "claim for refund procedure" to allow compromising claims when the Board determines there is sufficient cause to do so. SD.9 THE BOARD OF SUPERVISORS OF CONTRA COSTA COUNTY CALIFORNIA Adopted this Order on November 12, 2002, by the following vote: AYES: Supervisors Uilkema, Gerber, DeSau.lnier, Glover and Gioia NOES:None ABSENT: None ABSTAIN: None Subject: Claim of Patrick and Isabel Kesler for refund of taxes for 1996 through 2000 Tax Years Claim of Patrick and Isabel Kesler November 12, 2002 Page 2 The Board requested on October 1 that the Assessor provide additional information pertaining to the Kesler's claim. The Assessor has indicated that all information pertaining to the transaction that is the subject of the Kesler's claim has been provided to the Board. In matters of equity, the Board must consider the policy implications of its actions. The applicable statutes contemplate situations of inequity and provide reasonable relief and remuneration for losses or penalties incurred by individuals as a result of this type of error. Without such laws, claims could be made spanning 20 or more years and resulting in significant financial impact to the County and the taxpayers as a whole. The evidence provided by Mr. Heilig on behalf of the Keslers does not persuade us that remedies beyond what is authorized in the law are warranted. We are, therefore, recommending denial of the Kesler's claim for refund for periods prior to the date of their appeal. r ev " Tad M. Heffi Certified Public Accountant June 19, 2402 Mr. John Sweeten, Clerk and County Administrator Contra Costa County Board of Supervisors 651 Pine Street Martinez, CA 94553 REGISTERED RETURN RECEIPT Re: Patrick & Isabel Kesler Appeal Application Number 2001-198 through 202 Dear Mr. Sweeten, In accordance with the instructions by Donna Gerber' s Staff, I am respectfully requesting you to schedule the Board of Supervisors to take the following action: ACTION REQUESTED Instruct Office 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 w 2. Copy of letter form Assessor' s office 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 5151 (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 i i , i i