On-Time Taxpaying Has Downside for the County

More residents than ever are paying their property tax bills on time, but that’s not all good news for the county’s bankruptcy-drained coffers.

The county tax delinquency rate was just 2.5% last year, down from 4.3% in 1991. With fewer late tax bills, however, the county is collecting fewer delinquency fees, which last year generated $10 million for the county general fund.

Nonetheless, officials expressed pride at their 97% collection rate and hope it will improve still further with the mailing this month of more than 700,000 redesigned tax bills.

The revamped statements, which include graphic icons and personalized messages, are designed to avoid payment errors and help property owners better understand how their taxes are calculated.

“It looks better than the old ones, but I still hate to pay,” said Lou Edwards, a Fullerton contractor, after viewing the bill at the treasurer’s office Thursday.

Stan Mullin of Irvine wrote Treasurer-Tax Collector John M.W. Moorlach a letter praising the telephone listings. “It actually appears as if government wants the public to have the ability to conveniently address their questions,” Mullin wrote.

Moorlach said he is eager for public comments. “We welcome all criticisms,” he said. “It helps us do our job better.”

The treasurer-tax collector’s office decided to redesign the bills because the old statements generated thousands of calls a year from confused taxpayers.

Moorlach speculated that the low delinquency rate is a sign of the county’s improving economy.

Those who don’t pay their tax bills by the end of each fiscal year face a minimum 10% penalty. A portion of the fine revenue goes to the county’s operating budget.

“When people don’t pay the penalty, that’s a revenue source we don’t get,” Moorlach said.

Taxes are paid in two installments, the first due Nov. 1, the second Feb. 1. The property tax bills for 1996-97 will total about $1.9 billion, a slight increase over last year.

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A Taxing Overhaul

For the first time in a decade, property tax bills have been redesigned to reduce payment errors and help owners understand how their taxes are calculated. Taxpayers began receiving their bills this week. Here’s what the notations mean:

A. Property’s tax value, based mostly on its price when last sold. It tends to be less than what the property would be worth if offered for sale again.

B. Other local taxes and assessments for roads, sewers, school construction and the like. Amounts differ depending on where you live.

C. Computerized bar code lets postal service read addresses more quickly, saving the county $40,000 a year in postage costs.

D. “Attention” box includes personalized messages for those who may owe taxes.

E. “Additional Information” box contains notices of property-value changes.

F. Bold type and shaded boxes used to highlight amount of taxes owed and when payments are due.

How Home Value is Determined

The county measures the value of property each time it is sold and after additions or new construction are completed. Value is adjusted each year to reflect the California Consumer Price Index unless such an adjustment brings the assessment above market value.

Delinquent Drop

The property tax delinquency rate for has declined in recent years. Percentage of payments past due:

1991-92: 4.3%

1992-93: 4.4

1993-94: 3.3

1994-95: 3.6

1995-96: 2.5

Source: Treasurer-tax collector’s office, assessor’s office; Researched by SHELBY GRAD / For The Times