Archive for the ‘Taxes’ Category

Antioch School Board votes 5-0 to support ballot measure increasing business property taxes in state by $12 billion per year

Wednesday, June 10th, 2020

Repeals part of Proposition 13’s protections

By Allen Payton

During their meeting on Wednesday, June 10, 2020 the Antioch School Board unanimously passed a resolution without debate, supporting the California Schools and Local Communities Funding Act of 2020 on the November ballot. The measure would raise taxes on commercial and industrial property in California, repealing part of the tax protections in Proposition 13 that was passed by almost 63% of voters in 1978. (Read here or below: Resolution 2019-20-51 Schools and Local Communities Funding Act of 2020)

According to the non-profit, non-partisan Ballotpedia page on the measure, “Proposition 13 (1978) requires that residential, commercial, and industrial properties are taxed based on their purchase price. The tax is limited to no more than 1 percent of the purchase price (at the time of purchase), with an annual adjustment equal to the rate of inflation or 2 percent, whichever is lower.” UPDATE: As of July 1, 2020 Secretary of State Alex Padilla has assigned the measure the number of Proposition 15 on the November ballot.

Supporters are calling the protections for business property “loopholes” in the state’s tax system. According to Ballotpedia, “the ballot initiative would amend the state constitution to require commercial and industrial properties, except those zoned as commercial agriculture, to be taxed based on their market value” which is “known as split roll.”

Superintendent Stephanie Anello asked “the board to approve a resolution asking that the state fully fund education. As you know during difficult financial times, because our revenue is based on state revenue the schools are the first that are usually cut, that’s why you often see us revising our budget, which looks like we’re going to be doing in the next 45 days.”

“So, this is asking the legislature and the governor to consider Prop 98 not the floor, meaning the guarantee that was made to schools, that they would get at least that amount,” she continued. “It was never meant to be the ceiling. And what we find is that is often the ceiling. During difficult budget times, schools have to face difficult financial realities.”

Anello made no mention of Proposition 13 nor does the resolution.

Only one member of the public, Valerie Luke, submitted a comment on the matter, writing, “We are once again in a situation of fighting over scraps to try and meet the needs of our students. The funding system for our schools is deeply flawed and we’re always trying to figure out how to do more with less.”

“A coalition of education and community groups have been working many years on a solution to the education funding problem in California,” she continued. “Changing our tax code to eliminate loopholes that allow some big business from avoid paying property taxes will raise some $12 billion for our schools every year in our state.”

K-12 Schools & County Ed Offices Will Receive $2.67 to $4.1 Billion Annually If Passed

However, also according to Ballotpedia, schools would receive less than 40% of the estimated $7.5 to $12 billion generated from the tax increase. That’s because, “First, the revenue would be distributed to (a) the state to supplement decreases in revenue from the state’s personal income tax and corporation tax due to increased tax deductions and (b) counties to cover the costs of implementing the measure. Second, 60 percent of the remaining funds would be distributed to local governments and special districts, and 40 percent would be distributed to school districts and community colleges (via a new Local School and Community College Property Tax Fund).”

Ballotpedia further explains that “Revenue appropriated for education would be divided as follows: 11% for community colleges and 89% for public schools, charter schools, and county education offices. There would also be a requirement that schools and colleges receive an annual minimum of $100 (adjusted each year) per full-time student.”

Class Warfare Rhetoric in Resolution

The resolution uses class warfare rhetoric with statements such as, “the lack of adequate local funding is the result of an inequitable tax system in which corporations and wealthy investors do not pay their fair share in property taxes” and “loopholes in California’s property tax system allows a fraction of major commercial and industrial properties to avoid regular reassessment and use shady schemes to hide change in ownership”, as well as “these loopholes and tax schemes result in millions of dollars going to corporations and wealthy investors rather than to schools and local communities for essential services”

Householder Compares Facebook’s Property Taxes to Disney’s

Trustee Ellie Householder was the only member of the board to speak on the resolution, saying, “One of the things I find the most striking about this, when we’re talking about closing the corporate loophole…The thing that struck such a big chord with me, the fact that Disneyland…is paying property taxes on the value of that land in 1957 dollars.”

“So, you can imagine that a company like say Facebook that has just recently built a facility in the South Bay is paying a lot more property taxes than this multi-billion-dollar company,” she continued. “This is not going to increase taxes on individuals, but it’s just going to make sure that companies like the Disney Corporation give their fair share for schools.”

“With that I proudly make a motion to support the resolution,” Householder concluded.

Trustee Gary Hack seconded the motion and without any further discussion, it passed on a 5-0 vote.

Disneyland actually pays property taxes based on the value of its land in 1976 the base year stipulated in Prop. 13, plus the 2% maximum annual increase included in that ballot measure. Assuming it was increased by 2% every year since then, Disney is now paying property taxes based on almost 230% of the 1976 value of it’s property.

Facebook Founder & Wife Back Measure

Householder’s reference to Facebook’s property taxes may not be random, as one of the major funders of the Schools and Communities First campaign, leading the effort in support of the measure, is listed on its website as Chan Zuckerberg Advocacy. Also, according to the campaign’s website, it is “sponsored by a Coalition of Social Justice Organizations”.

The Chan Zuckerberg organization’s correct name is the Chan Zuckerberg Initiative (CZI) and was formed by Facebook founder Mark Zuckerberg and his wife Priscilla Chan, who are each listed as Co-Founder and Co-CEO. Among a variety of efforts, according to the CZI website, through the Reforming Policies & Practices, under their Advocacy efforts, they “work to shape policies that tangibly impact communities” and “raise awareness of key issues, support frontline organizations, and contribute to ballot and legislative measures.”

According to a one-page flier provided on the campaign’s website, the measure “Levels the playing field for all the businesses that already pay their fair share.” So, if it passes, Facebook’s older competitors in the state will have to pay the same property tax rate as the Zuckerbergs’ company does.

Opponents Of Measure Say It Will Hurt Jobs

Former state Director of Finance, Tom Campbell, one of the opponents of the measure warns, “In repealing Proposition 13 for businesses, California will be forfeiting our best argument to attract new jobs – a long-term sacrifice that will hollow-out California’s economy, costing us far more than $10 billion in a very short time.”

Commercial Property Tenant Rents Could Increase, Cause Decrease in Property Values

“It’s short-sighted,” said Aaron Meadows, the owner of commercial property and a property manager in Antioch, who commented after the board’s vote. “It’s going to be an additional cost to the corporation. It’s going to be passed on to the consumers. And the corporations are going to leave the state. We’re already losing headquarters. They’re leaving San Francisco and moving to Texas.”

“Why would their headquarters want to stay here?” he asked. “Why would Chevron want to stay here and keep their headquarters in San Ramon?”

“Commercial property managers will ask for reassessments if they get assessed to high,” Meadows continued. “They could potentially cause an assessment decrease, if the values aren’t keeping up.”

“In some commercial and retail buildings, property taxes are passed on to tenants as triple net,” he explained. “So, rents on the small business owner tenants will increase.”

“Plus, values will potentially decrease,” Meadows stated. “It might increase in the short term for property tax purposes. But, when we have to pass those additional taxes on to tenants, it could make it more difficult to lease the space, which reduces revenue resulting in the value of the property decreasing.”

An effort to reach Antioch Chamber of Commerce chairman Richard Pagano, to get the perspective of local businesses, was unsuccessful prior to publication time. In addition, following the meeting an email was sent to Anello asking if she wrote the resolution or for the source of it. Please check back later for any updates to this report.

WHEREAS, for four decades, school districts in California have experienced underinvestment and devastating cuts causing California’s school funding to fall behind and resulting in fewer services and resources for students and teachers;
WHEREAS, the lack of adequate local funding is the result of an inequitable tax system in which corporations and wealthy investors do not pay their fair share in property taxes;
WHEREAS, loopholes in California’s property tax system allows a fraction of major commercial and industrial properties to avoid regular reassessment and use shady schemes to hide change in ownership;
WHEREAS, these loopholes and tax schemes result in millions of dollars going to corporations and wealthy investors rather than to schools and local communities for essential services;
WHEREAS, experts estimate that the California Schools and Local Communities Funding Act reclaims $12 billion in property tax revenue every year to ensure that our schools and communities have the resources to educate all of our kids and the services to support all of our families;
WHEREAS, the California Schools and Local Communities Funding Act does not affect property taxes for homeowners or renters because the initiative exempts all residential property;
WHEREAS, academic researchers at the University of Southern California (USC) have identified that the vast majority of the reclaimed revenue will come from just a fraction of large properties;
WHEREAS, California schools are falling behind, ranking lowest in the nation with the largest number of students per teacher and the fewest counselors per student;
WHEREAS, per-pupil funding has declined from the top 10 in the nation to 39th;
WHEREAS, the top-ranked state spends $10,259 more per-pupil to educate their children than California spends;
WHEREAS, the measure invests up to $4 billion annually for K-14 schools to ensure that our kids receive the world-class education they deserve;
WHEREAS, California should be a leader in innovation by educating the next generation of students to compete in the global economy;
WHEREAS, the California Schools and Local Communities Funding Act guarantees funding to all school districts, over and above Proposition 98 funding, and following the local control funding formula to all students in need in all districts;
WHEREAS, the measure also provides billions in funding yearly for cities, counties, and special districts in locally controlled revenues for affordable housing, parks, libraries, emergency responders, health and human services, libraries, public infrastructure, and much more;
WHEREAS, the measure incentivizes the development of residential units and provides more funding for communities to invest in affordable housing;
WHEREAS, the measure provides new tax incentives to spur new investment in small businesses by eliminating the business personal property tax on equipment for California’s small businesses;
WHEREAS, the measure also exempts all small business owners whose property is worth $3 million or less;
WHEREAS, the measure levels the playing field for businesses that already pay their fair share in our communities;
WHEREAS, the California Schools and Local Communities Funding Act of 2020 is on the November 2020 ballot;
THEREFORE, be it Resolved, that the Antioch Unified School District endorses the California Schools and Local Communities Funding Act of 2020 for a ballot measure in November 2020.

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Contra Costa supervisors agree to hire pollster for possible half cent sales tax measure, extend ban on evictions to November

Wednesday, May 27th, 2020

Screenshot of the Contra Costa County Board of Supervisors’ online meeting on Tuesday, May 26, 2020.

County Health Services using Remdesivir for COVID-19 patients; get glimpse of COVID-19 era libraries

By Daniel Borsuk

The Contra Costa County Board of Supervisors discussed possibly placing a half-cent sales tax measure to fund health and social services on the November ballot and approved hiring a pollster on a split vote. The tax measure would be in addition to a proposed Bay Area-wide half-cent sales tax measure for transportation expected to be on the November ballot, as well.

Approve Hiring Pollster for Half Cent Sales Tax Study

In response to the Contra Costa Needs Assessment from the county’s Sales Tax Working Group a countywide half-cent sales tax is being proposed “to shore up access to medical and behavioral health services, and bolster county safety-net programs.” BOS 052620 Contra Costa Needs Assessment

At least for now, it is uncertain if the board will move forward with a sales tax increase measure for the November ballot. Supervisors voted 4-1, with Board Chair Candace Andersen casting the lone, dissenting vote, to spend as much as $60,000 to hire a pollster to test whether voters would support one. But since the outbreak of COVID-19, public support for such a tax measure might have waned.

“We need further direction and getting results from a poll will help,” said Supervisor Karen Mitchoff. “Before COVID, support for a tax increase was optimistic, but with COVID it might be different.”

District 1 Supervisor John Gioia, a big booster of a sales tax increase, said it would cost $30,000 to $40,000 to poll 600,000 to 800,000 prospective voters. Mitchoff said a more realistic cost is $60,000.

Both Gioia and Mitchoff serve on the Potential Sales Tax Measure Ad Hoc Committee.

“Right now, is not the time to spend county funds for a poll,” said chair Andersen of Danville.

Extend Temporary Ban on Evictions and Residential Rent Increase Moratorium

With the supervisors’ month-old ordinance that imposed a temporary ban on evictions and a residential rent increase moratorium at the end of May, supervisors acted to extend the ordinance through July 15. Supervisors also imposed a one-year grace period and defined a commercial real property eligible for the ordinance “…as an independently owned and operated business that is not dominate in its field of operation, has its principal office in California, has 100 or fewer employees, and has average annual gross receipts of $15 million or less over the previous three years.”

Figuring the economy will not recover quickly to restore jobs, some speakers asked supervisors to extend the rent increase moratorium one year.

“Keep pace with Alameda County,” said Dick Offerman of Pleasant Hill. “See that no one is evicted in our county. Extend the moratorium one year.”

Mitchoff took time to warn landlords who are violating the county ordinance. “Landlords know about this ordinance. There are some bad actors who take advantage of people who speak English as a second language, this must stop,” she said.

County Health Uses Remdesivir for COVID-19 Patients

Contra Costa County Public Health Officer Dr. Christopher Farnitano informed supervisors that Contra Costa County Public Health has begun administering the anti-viral drug Remdesivir to COVID-19 patients. A total of 105 dosages were given last week, Dr. Farnitano said.

“The company that is making it (the drug) is giving this to the United States.” Dr. Farnitano said that the drug is “This drug is somewhat beneficial.”

Dr. Farnitano said there were as of Tuesday 13 COVID-19 patients in Contra Costa Medical Center, compared to 19 patients two weeks ago. Since the outbreak of the pandemic in March, 37 persons have died from COVID-19 in the county, four deaths occurred in the past week with one of the deaths in the person’s early 30’s, which is uncommon.

So far, the county is COVID-19 testing daily 95 people per 100,000 residents when the daily goal should be 200 people per 100,000 residents.

This drew Supervisor Mitchoff to question the testing.

“We’re about halfway there,” she said. “I did not want to test, but now I want to test in order to get our numbers up.”

Board Vice Chair Supervisor Diane Burgis of Brentwood asked why the COVID-19 test takers at county sites have to wait for results as long as 10 days when persons at three state sites get results within five days.

Contra Costa County Health Department Director Anna Roth said the average turnaround for COVID-19 results is three to five days, but it could be up to 10 days.

Get Glimpse of COVID-19 Era Libraries

took a glimpse of what the COVID-19 era might look like on Tuesday visualizing the 26 public libraries could offer some type of front door service for patrons to pick up checked out books in bags and when libraries do open doors possibly on June 15 seating capacity will be reduced 20 percent at each location right when outdoor temperatures are peaking above 100 degrees and libraries often serve as cooling centers for the public.

Supervisors unanimously approved the Contra Costa County Library Pandemic Preparedness Plan presented by County Librarian Melinda Cervantes that promotes hygiene, social distancing, and reduced seating. BOS 052620 CCCL Pandemic Preparedness Plan Draft Final

“We plan to begin service as soon as possible,” Cervantes told supervisors during the teleconferenced board meeting.

During the presentation, supervisors learned 36 library accounting positions might be eliminated because of COVID-19 related revenue losses. The potential loss of the library jobs will undermine library book purchasing.

“We need to get through the state budget,” responded county administrator David Twa, who said the 36 library accounting jobs are “potential job layoffs” and are subject to the meet and confer process. The state budget will be unveiled in mid-June.

Approve Purchase of DA’s Office Mobile Forensic Vehicle

In other action, the supervisors approved the District Attorney’s Office request to execute an agreement with the City of San Jose for the expenditure of up to $200,000 to procure a mobile forensic vehicle for the Silicon Valley Internet Crimes Against Children Task Force. The vehicle is expected to cost $48,285.

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Get your taxes done for less at Liberty Tax through July 15

Saturday, May 9th, 2020

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Reminder: Federal income tax filing and payment deadline extended to July 15, 2020

Wednesday, April 15th, 2020

The Treasury Department and the Internal Revenue Service are providing special tax filing and payment relief to individuals and businesses in response to the COVID-19 Outbreak. The filing deadline for tax returns has been extended from April 15 to July 15, 2020. The IRS urges taxpayers who are owed a refund to file as quickly as possible. For those who can’t file by the July 15, 2020 deadline, the IRS reminds individual taxpayers that everyone is eligible to request an extension to file their return.

This filing and payment relief includes:

The 2019 income tax filing and payment deadlines for all taxpayers who file and pay their Federal income taxes on April 15, 2020, are automatically extended until July 15, 2020. This relief applies to all individual returns, trusts, and corporations. This relief is automatic, taxpayers do not need to file any additional forms or call the IRS to qualify.

This relief also includes estimated tax payments for tax year 2020 that are due on April 15, 2020.

Penalties and interest will begin to accrue on any remaining unpaid balances as of July 16, 2020. You will automatically avoid interest and penalties on the taxes paid by July 15.

Individual taxpayers who need additional time to file beyond the July 15 deadline can request a filing extension by filing Form 4868 through their tax professional, tax software or using the Free File link on IRS.gov. Businesses who need additional time must file Form 7004.

State tax returns

This relief only applies to federal income returns and tax (including tax on self-employment income) payments otherwise due April 15, 2020, not state tax payments or deposits or payments of any other type of federal tax. Taxpayers also will need to file income tax returns in 42 states plus the District of Columbia. State filing and payment deadlines vary and are not always the same as the federal filing deadline. The IRS urges taxpayers to check with their state tax agencies for those details. More information is available at https://www.taxadmin.org/state-tax-agencies.

 

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Gov. Newsom signs Executive Order providing relief to California small businesses

Tuesday, March 31st, 2020

Order provides 90-day extension in state and local taxes, including sales tax; extends licensing deadlines and requirements for a number of industries

SACRAMENTO – On Monday, Governor Gavin Newsom signed an executive order that will provide tax, regulatory and licensing extensions for businesses.

The executive order allows the California Department of Tax and Fee Administration (CDTFA) to offer a 90-day extension for tax returns and tax payments for all businesses filing a return for less than $1 million in taxes. That means small businesses will have until the end of July to file their first-quarter returns.

Additionally, the order extends the statute of limitations to file a claim for refund by 60 days to accommodate tax and fee payers.

The executive order also includes extensions that impact state government workers, as well as consumers. For instance, the Department of Motor Vehicles will limit in-person transactions for the next 60 days, allowing instead for mail-in renewals. Additionally, the Department of Consumer Affairs will waive continuing education requirements for several professions, also for the next 60 days.

Further, the order will extend the Office of Administrative Law’s deadlines to review regular department proposed regulations. The order also extends by 60 days the time period to complete investigation of public safety officers based on allegations of misconduct. Finally, deadlines for trainings, investigations, and adverse actions for state workers will also be extended.

A copy of the Governor’s executive order can be found here, and the text of the order can be found here.

For the latest on the state’s COVID-19 response, visit covid19.ca.gov.

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COVID-19: County Tax Collector cancels late-payment charges if you miss April 10 property tax deadline

Wednesday, March 25th, 2020

By Susan Shiu, Director, Office of Communications and Media, Contra Costa County

The Contra Costa County Tax Collector’s Office understands and shares the public’s concern about the impacts of the COVID-19 pandemic on our residents and businesses, and we are committed to helping in any way we can. While we have no legal authority to extend the April 10 property tax delinquent deadline, we can cancel late-payment charges.

  • Existing law R&T 4985.2 authorizes us to cancel penalties and interest on a delinquent payment due to circumstances, such as the pandemic that impacts a taxpayer’s ability to make timely payment. Note the penalty cancellation process will require documentation.
  • Nevertheless, those able to pay should do so online, over the phone, through bill pay at one’s own bank, or by mail.  We will honor the U.S. Postal Services’ cancellation postmark as the receiving day for mail-in payments.  The Office cannot accept walk-in payments.
  • For receipt of payment, a copy of your tax bill with the installment’s payment date is available online in View Bill under Account Lookup. We can mail you a copy as well.

For additional information, please refer to our Frequently Asked Questions, visit our website at www.cctax.us, or email our office at taxinfo@tax.cccounty.us.

For the latest updates on the impacts of the COVID-19 on property tax deadlines, please refer to the Statement from Russell V. Watts, Treasurer-Tax Collector.

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County elections update: Glover inches closer to victory, 30,500 ballots remaining to be counted

Saturday, March 14th, 2020

Manual tally to begin Monday, Antioch School District’s Measure T still too close to call

By Allen Payton

With the latest, Interim Update 3 from the Contra Costa County Elections Division from the March 3rd Presidential Primary posted Friday, March 13, there are still approximately 30,500 votes remaining to be counted in the county.

Supervisor Federal Glover gained on his two opponents and is now less than 0.12% from winning re-election outright. He now has 49.89% of the vote for a total of 20,330 votes. His next closest opponent, County Assessor Gus Kramer has 25.62% of the vote or 10,440 votes, followed closely by Martinez Planning Commissioner Sean Trambley with 24.49% or 9,981 votes.

If Glover doesn’t end up having 50% plus one vote, he will face the second-place finisher in a November General Election run-off.

Three of Six Tax Measures Passing

Three of the six tax measures on the ballot in Contra Costa are passing, as of the latest update.

The election for the Antioch Unified School District’s Measure T school improvement bond, covering the former Mello-Roos District 89-1, is still too close to call. It needs 55% of the vote to pass and currently has 53.13% with a margin of 1,511 votes.

In the Lafayette Measure L school district parcel tax election, which requires a 2/3’s vote to pass, it’s succeeding with 72.6% of the vote and a lead of 4,589 votes.

In the Moraga School District, the Measure M parcel tax election, which also requires a 2/3’s vote to pass, is succeeding with 70.27% of the vote and a margin of 2,731 votes.

In the West Contra Costa Unified School District Measure R school bond election, which requires a 55% vote to succeed, it is passing with 57.3% of the vote and leading the No votes by 8,009 votes.

The Pleasant Hill Park and Recreation Department’s Measure A bond measure, which requires a 2/3’s vote to pass, is failing with only 59.55% of the vote, but leading by 2,463 votes. It needs an increase of 6.12% from the remaining votes.

The countywide Measure J half-cent sales tax for transportation, which requires a 2/3’s vote to pass, was also failing with just 50.6% of the vote, and barely leading by 3,472 votes out of 288,644 counted so far.

Danville Development Referendum Passing

In the Town of Danville’s Measure Y referendum, which will approve the development of 69 homes on 410 acres and requires a simple majority to pass, is winning with 54.26% of the vote and a margin of 1,477 votes.

Following are the estimated number of ballots that remain to be counted as of Friday, March 13.

500          Other

29,200     Provisional

800          Conditional Voter Registration

30,500     Total Estimate

Manual Tally

Beginning Monday, March 16 the Elections Division will conduct a manual audit of ballots cast in the March 3rd Presidential Primary. The public is invited to observe the count.

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Want to serve on the county’s Treasury Oversight Committee?

Friday, February 28th, 2020

The Contra Costa County Board of Supervisors is seeking an individual with sound knowledge and experience in the field of public and private finance to serve on the Treasury Oversight Committee (Committee) in the Public Representative Seat #3.  To be considered, candidates must be County residents, may not be employed by an entity that has contributed to the reelection campaign of the County Treasurer or a member of the Board of Supervisors in the previous three years, may not directly or indirectly raise money for the County Treasurer or a member of the Board of Supervisors while a member of the Committee, and may not work for bond underwriters, bond counsel, security brokerages or dealers, or financial services firms with whom the County Treasurer does business, either during his or her tenure on the committee or for one year after leaving the Committee. (Government Code §27132.3).

The Committee meets at 3:00 p.m. on the third Tuesday of the month following each quarter at 625 Court Street, Room B001, Martinez, CA 94553.  Each meeting lasts approximately one hour.  The Committee’s duties include reviewing and monitoring the County Treasurer’s annual investment policy, and ensuring an annual audit is conducted to determine the County Treasurer is in compliance with Government Code §§27130-27137. The annual audits, meeting agendas and minutes of the Committee are available online. Members of the Committee receive no compensation for their service.  The Board of Supervisors will appoint the selected individual to complete the four-year term on May 1, 2020 through April 30, 2024.

Application forms can be obtained from the Clerk of the Board of Supervisors by calling (925) 335-1900 or by clicking on the following link: Application Form.  Applications should be returned to the Clerk of the Board of Supervisors, Room 106, County Administration Building, 651 Pine Street, Martinez, CA 94553 no later than Friday, March 27, 2020 by 5 p.m.  More information about the Treasury Oversight Committee can be obtained by calling Russell Watts at (925) 957-2888 or visiting the Treasurer-Tax Collector’s Treasury Oversight Committee webpage.

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