COMMENTARY : Property Taxpayers Need Rights
Taxpayers’ Bill of Rights legislation has been on the books in California for several years. These laws protect those who pay income and sales taxes. But property taxpayers have not been given similar protections, even though they pay more tax than any other group in California.
Sen. Becky Morgan (R-Los Altos Hills) has introduced a bill (SB 1557) that will correct this obvious disparity, and it deserves serious consideration.
A similar bill was defeated last year, principally because county assessors lobbied against it. The assessors are out again to defeat SB 1557 because the status quo gives them advantages over property taxpayers that income and sales tax authorities do not have.
As a member of the State Board of Equalization, I have the responsibility to set guidelines governing local county assessors. From this position, I see firsthand the need for legislation to protect the rights of California’s property taxpayers.
Consider this. If the government disputes your income or sales tax return, you don’t have to pay the amount in dispute until the matter is resolved. In times such as today, when people and businesses are short of cash, this is an important right.
The property tax system is much different. The assessor sends you a statement of how much you supposedly owe. The tax bill you receive does little to explain how the tax was calculated. It is very difficult to determine whether a mistake has been made.
It’s like a restaurant giving you the stub at the bottom of your tab, rather than the full statement. Most don’t know enough about property taxes even to question their bills. The system operates, in part, by keeping taxpayers in the dark.
Even though property values have declined recently, you won’t see a decrease in your assessed value unless you have specifically asked for a reassessment. If you are a homeowner, you won’t know your assessment is too high until you receive your tax bill in the mail, and by then it will be too late to do anything but pay your bill and complain later.
If you disagree with your tax bill, the assessor is presumed to be right, and you must pay the disputed tax before you can contest it by way of appeal. The assessor can tie up your property without advance notice based on a faulty tax bill.
If you withhold payment, even if you do not legally owe the tax, a lien can be placed on your property. You will most likely have no idea a lien is being attached until after it is done.
If this seems unfair, it is. Unlike income and sales tax procedures, the property tax system places too much power in the hands of the tax authorities. The playing field needs leveling.
While some assessors’ offices are moving in the right direction, legislation is needed to ensure that taxpayers’ rights are uniformly protected.
The Property Taxpayers’ Bill of Rights restores needed balance. It protects taxpayers against surprise tax statements. The assessor cannot change the method of calculating your taxes without notifying you first. The taxpayer is given a fair opportunity to object to tax changes before the changes mature into a bill that must be paid prior to appeal.
Under the present system, assessors can send out assessments at the last minute, leaving taxpayers no time to object before a bill is generated.
The bill of rights ensures that taxpayers are given adequate time to object to last-minute assessments without first having to pay the bill.
Today, assessors are not required to respond in writing to taxpayer inquiries. The bill of rights requires assessors to respond in writing, and holds them to their word.
A taxpayers’ rights advocate is created to ensure these new rights are respected by the bureaucracy. This mirrors the rights advocates now working for taxpayers in the California income and sales tax arenas. Even the IRS has a rights advocate.
Reform in California is long overdue. The existing property tax system promotes misunderstanding and distrust. It is shrouded in secrecy and obscure technicalities. The bill changes the rules in ways that will encourage tax authorities to become more user-friendly and customer-oriented.
An important step in the direction of solving California’s current fiscal crisis is in showing real concern for the rights of property taxpayers who are largely responsible for keeping government afloat today.
Fong, 38, of Hacienda Heights, is a member of the State Board of Equalization.
