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Consent-General Government # 15.
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| Board of Supervisors |
Financial Services |
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| Subject |
| Adopt resolution to authorize use and promotion of EasySmartPay, a third-party service providing taxpayers with the option to pay secured property taxes in monthly installments. (No general fund impact) (Rinde/Burnham) |
| Recommended Action |
| Adopt resolution to authorize use and promotion of EasySmartPay, a third-party service providing taxpayers with the option to pay secured property taxes in monthly installments. |
| Strategic Plan Goal(s) |
| Operational Excellence |
| Reason for Recommended Action/Background |
California Revenue and Taxation Code authorizes counties to collect property taxes in two installments per year (R&T 2700-2708). Many property owners have the option to pay their property taxes in monthly installments through escrow services provided by banks owning mortgages; however, property owners who own their property outright lack a similar option. For some, biannual tax bills instead of monthly tax bills can be a financial hardship or considerable inconvenience. Some property tax owners within the County have voiced frustration to Tax Collection staff; however, the Chief Financial Officer (in role as Tax Collector) lacks the authority to provide monthly billing under current law. In particular, several North Davis Meadows residents whose tax bills contain recent increases in water assessments have expressed a desire for monthly billing.
Smart Easy Pay Inc. is a privately held corporation founded in partnership with the California State Association of Counties Financing Corporation (CSAC-FC) with the aim to fill service gaps between government agencies and the public regarding taxes. As to the situation described above, the EasySmartPay service allows individual property owners to voluntarily assign (and also voluntarily un-assign) their property tax bills to EasySmartPay, which will in turn bill them for that amount spread over monthly installments for a fee. The fees (though subject to change) are currently 2.25% for Credit/Debt Payments or 1.75% for electronic checks. In comparison, County processing fees for property taxes are also 2.25% for Credit/Debit payments but 0% for electronic checks. Any fees in excess of property taxes due are collected by EasySmartPay and not by the County.
There is no financial impact to the County. Taxpayers voluntarily enroll in EasySmartPay and when taxes are due, EasySmartPay will remit the total taxes due for enrolled property owners, to the County, in the same manner used by other banks and financial institutions that interact with the County's property tax system.
The EasySmartPay service offered is available to tax payers throughout the state on an individual basis. Because the service fulfills an expressed constituent need, the Chief Financial Officer seeks Board authorization to promote EasySmartPay's service to County property owners where appropriate. This may involve, but not be limited to, a link on the County Website and making flyers or other materials available in the Department of Financial Service's physical office. In order to implement this program in Yolo County, it is recommended that the Board adopt a supporting resolution to this effect (Att. A. Resolution). |
| Collaborations (including Board advisory groups and external partner agencies) |
| The Department of Financial Services collaborated with the CSAC Financing Corporation and staff of EasySmartPay. |
| Competitive Bid Process |
| Not applicable. |
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| Fiscal Impact |
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| Source of Funds for this Expenditure |
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Explanation (Expenditure and/or Revenue) |
| Further explanation as needed: |
| There is no financial impact to the County. Taxpayers voluntarily enroll in EasySmartPay and when taxes are due, EasySmartPay will remit the total taxes due for enrolled property owners, to the County, in the same manner used by other banks and financial institutions that interact with the County's property tax system. |
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