By: Santa Clara County Controller-Treasurer’s Office

 Property Tax Assessments  Property Tax Roll Types  Role of Different Agencies  Apportionments  Tax Rate Book  Projections  Q&A

The People's Initiative to Limit Property Taxation was approved by California voters on June 6, Article 13A of the Constitution of the State of California Limit an annual increases of assessed value of real property to an inflation factor (CPI), not to exceed 2% per year.

Year CCPI % Change Base Year Value ChangeFactor % % 2% % 2% % 0.753% % % % 2% 1.02

 Allowed reassessment of a base year value for Supplemental event (a) change in ownership, or (b) completion of new construction.  A reassessment may be an assessed value increase resulting in a supplemental bill(s), an assessed value decrease resulting in a supplemental refund(s) or retaining the same assessed value (no change).

 Government properties or properties that are used for non–commercial purposes.  Welfare Exemption: hospitals, religious properties, charities, and nonprofit schools and colleges.  Homeowner Exemption  Veteran Exemption EXEMPTION

PERSONAL PROPERTY Property other than land, buildings, and other permanent structures, which are commonly referred to as “real property” such as manufacturing equipment, business computers, and office furniture. Aircraft – personal and commercial Boats

 Properties purchased with down payment assistance funds (State and Federal) for low and very low income homebuyers.  The Below Market Rate (BMR) properties have covenants such as ·Income limits & resale restrictions apply for 30 years ·Purchase is for first time homebuyers ·Homes sold for less than market value ·Must be owner occupied for 30 years ·Homes must be resold at the BMR price during restricted 30 year period

The State Board of Equalization is responsible for assessing certain real properties that cross county boundaries, such as  Public Utilities :Transmission Lines, Optical Lines, Electric Facilities.  Telecommunication: Interexchange and Commercial Mobile  Regulated Railway: Railroad tracks and cars.  Canals.

The County Assessor is responsible for assessing inter-county pipelines

 PROP 8: TEMPORARY REDUCTION OF PROP 13 Base Values due to Market declines.  PROP 60 : allows transfers of base year values within the same county (intracounty). Must be at least 55 years old.  PROP 90 : allows transfers from one county to another county in California (intercounty) and it is the discretion of each county to authorize such transfers. Must be at least 55 years old.  PROP 110 : provides property tax relief for severely and permanently disabled claimants when they sell an existing home and buy or build another.  PROP 58 : Transfers of the principal place of residence between parents and their children (there is no limit on the value of the residence)

 The 1 percent rate established by Proposition 13 (1978).  Tax rates to pay for local voter– approved debt.  Property assessments.  Mello–Roos taxes.  Parcel taxes.

 SECURED  SUPPLEMENTAL  UNSECURED  UNITARY

COUNTY ASSESSOR:  Assesses Values of the Properties  Certifies the Values to the County Treasurer-Controller

TAX COLLECTOR  Collects the taxes  Issues Refunds  Prints and Mails tax bills  Certifies the Tax Collections to the Treasurer Controller for Apportionment

TREASURER-CONTROLLER  Extends the Annual Tax Rolls  Processes Roll Corrections  Apportions the Tax Collections and Refunds [due to Roll Corrections]  Distributes the Funds to Taxing Entities  Provides Fiscal Reports

Santa Clara County Property Tax Apportionment

 Apportionment ◦ Two Apportionment methods:  Teeter  Non-teeter

 Teeter ◦ Author: Mr. Desmond Teeter, the Auditor-Controller for Contra Costa County (1940s) ◦ Allows counties to apportion secured, unitary, assessment, supplemental to jurisdictions at 100% of billed amount rather than tax collections ◦ County collects delinquent tax payments & penalties ◦ R&T §  Benefits:  Simplified property tax estimation and allocation process  Stable and reliable annual property tax revenues

Santa Clara County:  Teeter: Secured & Supplemental  Non-teeter: Unsecured Non-Teeter Cities:  City of Sunnyvale  Town of Los Gatos

Apportionment Factors  To distribute property tax revenue  Revenue and Taxation Code  AB8 Apportionment factors  Allocate Secured, Unsecured and Homeowner Exemption tax revenues [R&T § 96.5]  Supplemental Apportionment factors  Allocate Supplemental tax revenue[R&T § 75.6,75.7 & ]  Unitary Apportionment factors  Allocate unitary tax revenue [R&T § 100]

 Apportionment Schedule ◦ Major revenue  Secured: 10 times a year  Unsecured: 3 times a year  Supplemental: 13 times a year

RPTTF Residual & Pass-through Estimate  Available on October 1 and April 1 RPTTF Residual & Pass-through Distribution  January 2 and June 1  Other Assets Sale Distribution  5 days after receipt of the fund from RDA SA

Current Year’s Projection Assessor’s Certified Roll Roll Corrections

Next Fiscal Year’s Projection Assessor’s Monthly Roll Growth Estimated Roll Corrections

Current Year’s Projection Assessor’s Annual Roll YTD Collection Historic Trend

Next Fiscal Year’s Projection Historic Data Market Trend/Economy

Q & A