COUNTY OF SAN MATEO

Inter-Departmental Correspondence

Tax Collector/Treasurer

DATE:

04-18-2006

BOARD MEETING DATE:

05-23-2006

SPECIAL NOTICE/HEARING:

None

VOTE REQUIRED:

Majority

TO:

Honorable Board of Supervisors

FROM:

Lee Buffington, Tax Collector/Treasurer

SUBJECT:

Resolution Authorizing An Extension Of The Prior Revenue And Taxation Code Section 3691 Five-Year Limitation On Tax-Defaulted Non-Residential Commercial Property

RECOMMENDATION:

Adopt a resolution authorizing the extension of the five-year limitation for tax-defaulted non-residential commercial property.

VISION ALIGNMENT:

Commitment: Responsive, effective and collaborative government.

Goal(s): 20. Government decisions are based on careful consideration of future impact, rather than temporary relief or immediate gain.

Performance Measure(s):

Measure

FY 2004-05
Actual

FY 2005-06
Projected

What/How Much We Do

Number of Bills Issued

354,276

360,000

Is Anyone Better Off? (Outcome)

Dollars collected (all tax rolls)

Collection rate:

-Secured (County)

-Unsecured (County)

-Secured (Statewide Avg.)

-Unsecured (Statewide Avg.)

$1.3 B

99%

98%

98%

95%

$1.2 B

98%

98%

97%

96%

BACKGROUND:

California Revenue and Taxation Code Section 3691 mandates that the Tax Collector shall have the power to sell certain tax delinquent parcels and shall attempt to sell any unredeemed parcels. Assembly Bill 2144, effective January 1, 2005, now requires an attempt to sell tax-defaulted non-residential commercial property at public auction within 3 years after the property becomes tax-defaulted as opposed to the prior five-year limitation period.

DISCUSSION:

This new tax-defaulted requirement would require extensive enhancements and improvements to the current property tax computer system and added expense to the County’s General Fund. The current property tax rolls do not distinguish between residential and commercial properties as the prior limitation period of section 3961 applied equally to commercial and residential properties. The Assessor’s Roll would have to be enhanced to provide this new information to the Tax Collector. Assembly Bill 2144 provides that a county may elect by Ordinance or Resolution to extend the five-year limitation period contained in the prior Revenue and Taxation Code Section 3196 to tax-defaulted non-residential commercial property.

FISCAL IMPACT:

There is no net County cost.