To: Board of Supervisors
From: Monica Nino, County Administrator
Report Title: Property Tax Administration Cost Recovery
☒Recommendation of the County Administrator ☐ Recommendation of Board Committee
RECOMMENDATIONS:
1. RECEIVE the 2023-24 report of the Auditor-Controller that contains the property tax-related costs of the Assessor, Tax Collector, Auditor-Controller, and Assessment Appeals Board for the 2022-23 fiscal year, as required by Resolution No. 97/129;
2. FIX March 19, 2024 at 9:30 a.m. for a public hearing on the determination of the property tax administration costs;
3. DIRECT the Clerk of the Board to notify affected local jurisdictions of the public hearing; and
4. DIRECT the Clerk of the Board to prepare and publish the required legal notice and make supporting documentation available for public inspection.
FISCAL IMPACT:
The report details the property tax-related administrative costs of the County in fiscal year 2022-23 to determine the amount of cost recovery in fiscal year 2023-24. The fiscal year 2022-23 net cost of property tax administration was $18,099,543. This amounts to approximately 0.49% of all the 2022-23 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 $8,634,581. The net recovery to the County is $7,338,486.
Total cost of property tax administration $18,099,543
Exempt School share of costs -$8,634,581
County share of costs -$2,126,476
Net recovery to the County $7,338,486
BACKGROUND:
In 1997, the Board of Supervisors adopted Resolution No. 97/129 which provides procedures for property tax administration cost recovery. The recommended actions are necessary for implementation of Resolution No. 97/129 for the current fiscal year.
CONSEQUENCE OF NEGATIVE ACTION:
If the hearing is not set to consider and adopt the finding of property tax costs, the costs cannot be recovered, resulting in a loss of General Fund revenue in the current fiscal year.