To: Board of Supervisors
From: Thomas Geiger, County Counsel
Report Title: Denial of claims filed by Golden State Water Company (formerly known as, Southern California Water Company) and ExteNet Systems, LLC.
?Recommendation of the County Administrator ? Recommendation of Board Committee
RECOMMENDATIONS:
DENY the claims filed by Golden State Water Company (formerly known as, Southern California Water Company) and ExteNet Systems, LLC in the total amount of $81,803.17, plus interest, in unitary property taxes paid for tax year 2019/2020.
FISCAL IMPACT:
No fiscal impact.
BACKGROUND:
Golden State Water Company and ExteNet Systems, LLC (collectively, "Claimants") have filed claims for refund of property taxes against the County, essentially alleging that the statutory formula used to calculate their property tax rate violates the California Constitution.
In October 2023, ExteNet Systems, LLC submitted a claim to the County in the amount of $19,600.92. In December 2023, Golden State Water Company submitted a claim to the County in the amount of $62,202.25. [The claims are provided in Attachments A-B.] The claims, in the collective amount of $81,803.17, are for property taxes paid for tax year 2019/2020. Claimants request interest on the requested refund amounts.
Claimants have submitted refund claims for prior years based on the same allegation, which the County has denied. Other counties that have received similar refund claims from at least one of these Claimants appear to have uniformly denied the claims. In January 2023, Santa Clara County prevailed before the Court of Appeal on the basis that the statutory tax rate imposed on property owned by such entities does not violate the California Constitution.
ANALYSIS:
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 ...
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