RESOLUTION NO. _____________

BOARD OF SUPERVISORS, COUNTY OF SAN MATEO, STATE OF CALIFORNIA

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RESOLUTION IN OPPOSITION TO SENATE BILL 593 (ACKERMAN) COMMERCIAL AIR CARRIER PERSONAL PROPERTY TAXATION ASSESSMENT

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RESOLVED, by the Board of Supervisors of the County of San Mateo, State of California, that

WHEREAS, the California Constitution prescribes that the Board of Equalization assesses pipelines, canals, etc., that straddle two or more counties, as well as property owned or used by utilities; and that County assessors are charged with assessing all other property;

WHEREAS, County assessors currently assess aircraft owned by air carriers based on a 1998-99 negotiated formula methodology to be used through 2003-04 to avoid costly, protracted litigation;

WHEREAS, about $100 million is collected on the assessment of commercial aircraft -- half of which is apportioned to fund K-12 education;

WHEREAS, Senate Bill 593 (Ackerman) would shift the assessment of commercial airlines personal property from counties to the Board of Equalization and extend the negotiated assessment for an additional year, even though the Board of Equalization no experience assessing airlines industry property; moreover, SB 593 would shift a portion of counties' Property Tax Administration Grant funds to fund the cost of the new state responsibilities.

NOW, THEREFORE, IT IS HEREBY DETERMINED AND ORDERED that the Board of Supervisors oppose Senate Bill 593 (Ackerman) to shift the assessment of commercial airlines personal property from counties to the Board of Equalization and ensure the airlines industry is treated as all other California businesses, industries and companies that own or lease property in multiple jurisdictions.

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