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HomeMy WebLinkAboutMINUTES - 04071992 - 1.81 TO: BOARD OF SUPERVISORS �F ` Contra FROM: Phil Batchelor, County Administrator Costa ° Count DATE: March 31, 1992 ` C SUBJECT: LEGISLATION: AB 2737 (Isenberg) SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION RECOMMENDATION: Acknowledge that the Board of Supervisors is the SPONSOR of AB 2737 by Assemblyman Phillip Isenberg which is available to serve as the vehicle by which the settlement with the various public utilities over the property tax assessment methodology used by the State Board of Equalization can be placed in statute. BACKGROUND: As the Board is aware, recent court decisions have upheld several railroads and public utilities in their efforts to overturn or modify the assessment practices of the State Board of Equalization in regard to setting the property taxes due on their property. The value of utility property is set by the State Board of Equalization but is collected by the counties . Any reduction in the value of utility property affects all local taxing jurisdictions which receive a portion of the property tax. Strict implementation of the court decisions would have required that counties, cities, schools and special districts return perhaps one billion dollars in past property tax revenue to the utilities as well as suffering a substantial reduction in future property tax revenue as a result of the adjusted method of assessing utility property. Because of the substantial negative impact such decisions would have had, counties have been engaged in negotiations with the utilities, the State Board of Equalization and the Public Utilities Commission in an effort to reduce the impact of the court decision on local government. CONTINUED ON ATTACHMENT: YES SIGNATURE: RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE X APPROVE OTHER SIGNATUREM: : ACTION OF BOARD ON pr 1 APPROVED AS RECOMMENDED X OTHER VOTE OF SUPERVISORS I HEREBY CERTIFY THAT THIS IS A TRUE UNANIMOUS(ABSENT ) AND CORRECT COPY OF AN ACTION TAKEN AYES: NOES: AND ENTERED ON THE MINUTES OF THE BOARD ABSENT: ABSTAIN: OF SUPERVISORS ON THE,D,yAT,ESSHOWN.NN.. CC: Please see Page 2 . ATTESTED PHIL BATCHELOR,CLERK OF THE BOARD OF SUPERVISORS AND COUNTY ADMINISTRATOR BY DEPUTY M382 (10/88) -2- Anticipating that some statutory support would be required in order to implement any settlement which might be reached, Assemblyman Isenberg agreed to introduce AB 2737 to serve as the vehicle for such a settlement. As introduced, the bill does not yet contain the specific details of the settlement, which are still being negotiated. However, the Board of Supervisors should acknowledge that it is the sponsor of AB 2737. Specific language will be amended into the bill once the settlement is completed and a decision is made regarding precisely what statutory requirements are necessary in order to fully implement the settlement. The Board of Supervisors will be advised of the specific nature of the settlement and the need for statutory language in support of the settlement once those details are worked out. cc: County Administrator County Assessor County Auditor-Controller County Counsel Tony Enea, Senior Deputy County Administrator Steve Swendiman, Executive Director, CSAC Les Spahnn, SRJ. Jackson, Barish & Associates