Agenda

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Consent-General Government # 9.

Board of Supervisors

Clerk-Recorder/Assessor/Elections

Meeting Date:	04/06/2021
Brief Title: Intercounty Transfer of Base Year Value following Disaster
From:	Jesse Salinas, Assessor/Clerk-Recorder/Registrar of Voters, Assessor/Clerk-Recorder/Elections
Staff Contact:	Patricia Sanchez, Principal Appraiser, Assessor/Clerk-Recorder/Elections, x8160
Supervisorial District Impact:

Subject

Waive second reading and adopt ordinance amending Section 3-4.02 to the Yolo County Code of Ordinances, authorizing intercounty transfers of base year values for property tax purposes to replace property following a disaster. (General fund impact $900) (Salinas/Sanchez)

Recommended Action

Strategic Plan Goal(s)

	Safe Communities
	Robust Economy

Reason for Recommended Action/Background

Submitted for Board approval is an ordinance adding to Section 3-4.02 in the Yolo County Code of Ordinances, authorizing intercounty transfers of base year values for property tax purposes to replace property following a disaster.

In the recent years, our state has seen an increase in residents impacted by natural disasters. With today’s housing shortage and challenges with rebuilding in certain areas, many of these affected residents have relocated and restarted their lives in communities outside of their former home county. Aside from the hardship of losing their home, many of these individuals have also been faced with an increased property tax burden from their newly assessed replacement property.

Current state law allows the County Board of Supervisors to authorize an amended property tax transfer option for qualifying homeowners. This would effectively allow for the homeowner to carry over their previous property tax base to their new home when relocating into Yolo County. By authorizing this measure, Yolo County would provide additional relief to disaster survivors including those on fixed incomes that have already relocated to Yolo County and have made it their home.

Revenue and Taxation Code Section 69.3 provides the County Board of Supervisors may adopt an ordinance that authorizes the transfer of the base year value of real property that is located within another county and has been substantially damaged or destroyed by a Governor-declared disaster, to a comparable replacement property located within the adopting county. This ordinance would allow those who cannot qualify under the timeline set by Proposition 19 to apply for relief since moving to Yolo County. As of now, our records indicate three possible Yolo County homeowners that may qualify for this amended property tax based option. It is not possible at this time to estimate how many property owners may use this provision in the future should it be adopted but this may be negated by Proposition 19, which was approved by the voters in November, 2020, and allows for prospective base year value transfers due to natural disasters.

Collaborations (including Board advisory groups and external partner agencies)

This item was developed in coordination with the County Administrator’s Office, Department of Financial Services, and County Counsel.

Competitive Bid Process

Fiscal Impact

Fiscal Impact (Expenditure)
Potential fiscal impact (see notes in explanation section below)
Total cost of recommended action:		$
Amount budgeted for expenditure:		$
Additional expenditure authority needed:		$
On-going commitment (annual cost):	$

Source of Funds for this Expenditure

Explanation (Expenditure and/or Revenue)

Further explanation as needed:

If adopted, this ordinance will result in a projected annual property revenue loss for the county averaging $300 per approved property for the three properties under consideration prior to any implementation of Proposition 19, which is scheduled to take effect on April 1, 2021. This projection is based on an earlier review of submitted requests from three known individuals that may be eligible and the impact on the General Fund is estimated to be $900 but could increase marginally if others eligible homeowners request similar base-year transfers in the future.

Additionally, historical data from the Board of Equalization annual report on “Report on Budgets, Workloads, and Assessment Appeals Activities” was reviewed. Based on these reports, on average, the total reported “number of single residential parcels affected by Misfortune/Calamity events statewide using three reported years (2015, 2017, and 2018) was about 0.08%, reflecting the limited number of homeowners that could qualify for relief under this proposed ordinance.

Adoption of this ordinance will require no additional staff or departmental budget to implement as the Yolo County Assessor's office currently processes a similar program with the intercounty base year value transfer program for seniors.

Attachments
Att. A. Revenue and Taxation Code Section 69.3
Att. B. Ordinance No. 1534

Form Review

Inbox	Reviewed By	Date
Jesse Salinas	Jesse Salinas	03/26/2021 10:34 AM
Financial Services	Shelby Milliren	03/26/2021 01:19 PM
County Counsel	Hope Welton	03/26/2021 01:24 PM
Form Started By: psanchez		Started On: 03/18/2021 02:45 PM
Final Approval Date: 03/26/2021