To: Board of Supervisors
From: Robert Campbell, Auditor-Controller
Report Title: Deny claims filed for unitary property taxes paid for tax year 2019/20
?Recommendation of the County Administrator ? Recommendation of Board Committee
RECOMMENDATIONS:
DENY the claims filed by Kinder Morgan, Inc. (on behalf of its subsidiary, SFPP, L.P.) in the total amount of $324,441.25, plus interest, in unitary property taxes and rights of way taxes paid for tax year 2019/2020.
FISCAL IMPACT:
No fiscal impact.
BACKGROUND:
Kinder Morgan, Inc. (on behalf of its subsidiary, SFPP, L.P.) ("Claimant") has filed two separate claims for refund of unitary property taxes and rights of way taxes against the County.
In March 2024, Kinder Morgan, Inc. submitted a claim for refund of unitary property taxes to the County in the amount of $313,948.91, alleging that the statutory formula used to calculate its property tax rate violates the California Constitution. [This claim is provided in Attachment A.]
In March 2024, Claimant submitted a separate claim for refund of rights of way taxes to the County in the amount of $10,492.34, alleging that it is not subject to the assessment jurisdiction of California State Board of Equalization and is only subject to the local assessment jurisdiction of the County. Therefore, it should have been subject to the local tax rate, which is lower than the unitary tax rate. [This claim is provided in Attachment B.]
Claimant requests interest on the requested refund amounts.
ANALYSIS:
Unitary Property Taxes
Under the California Constitution, certain property owned or used by utilities and telecommunication companies, among others, is annually assessed by the State Board of Equalization ("BOE"). (Cal. Const., article XIII, ? 19.) The amount of such "unitary property" assessments attributed to the County by the BOE are then taxed by the County in accordance with a statutory formula. (See Rev. & Tax. Code,?100.)
The Auditor-Controller uses the amount...
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