Congress is currently working out a fourth legislative package to provide additional COVID-19 relief for government agencies at the local, state, and federal levels and CSDA is calling upon all special districts to join in requesting for special district inclusion. A sample letter is now available at csda.net/take-action along with an overview of CSDA’s ongoing advocacy efforts related to COVID-19, such as CSDA’s participation in a coalition effort to retain the April 10 property tax deadline.
Take Action: Request Federal Relief for Special Districts
Federal actions taken so far have been beneficial to offer additional resources to the State of California. However, special districts are unlikely to see direct relief. Several key needs remain unaddressed, and CSDA is calling on districts across the state to Take Action.
Special districts should contact their members of Congress and urge them to:
- Include special districts, along with small cities and other local agencies, in the Coronavirus Relief Fund and a request an additional appropriation to supplement the assistance.
- Expand the payroll tax credit for COVID-19 sick and family leave to special districts and other local agencies, which do not receive the credit but are still required to provide the additional leave.
- Ease access to capital as the economy begins to turn downward.
Nearly 70 special districts sent letters to their federal representatives requesting districts’ consideration in the CARES Act. Now, in anticipation of a fourth federal relief bill, it is time to keep the momentum and request Congress address the needs of special districts serving millions of Californians. Click here for more information on COVID-19 advocacy. Click here for a template letter to your members of Congress.
Update on April 10 Property Tax Deadline
Saturday evening, April 4, the California State Association of Counties (CSAC) and the California Association of County Treasurers and Tax Collectors issued a joint statement regarding the COVID‐19 crisis and the April 10 property tax deadline. Excerpts from the letter included the following statements:
“…Counties will use all existing authority to cancel penalties and other charges for homeowners, small businesses, and other property owners that are unable to pay their property taxes due to circumstances caused by COVID-19 on a case-by-case basis…”
“Property taxes only go to local governments—schools, counties, cities and special districts—not to the state or federal government, and directly fund education, health care, hospitals, welfare services, fire protection, and homelessness efforts, to name a few…”
“Delaying the April 10 property tax payment would take tens of billions of dollars away from local government, create cash flow problems, and cause some to default on their loans, which would have significant long-term effects on all local agencies in California…”
Following the counties’ joint press release, Governor Gavin Newsom immediately praised the statement saying, “…of a commitment from California counties to cancel penalties and other charges for homeowners, small businesses and other property owners with demonstrated economic hardship, on a case-by-case basis, due to COVID-19. Property owners that can afford to pay these taxes should continue to pay on time…I would like to thank the California State Association of Counties and the California Association of County Treasurers and Tax Collectors for committing to providing economic relief for residents and small businesses facing hardships due to COVID-19…”
There has been an ongoing discussion in Sacramento about providing property tax relief to Californians during the COVID-19 pandemic, including proposed legislation to retroactively forgive all penalties and interest for delinquent payments of the upcoming April 10 property tax deadline. There was concern among local governments that this would incentivize unnecessary delays of payments while offering no state backfill or loans for the dramatic loss in revenue that could occur to local services.
On March 21, CSDA signed a joint letter with our city, county and education counterparts requesting Governor Gavin Newsom retain the April 10 property tax deadline. The letter informed the Governor of the consequences to services and infrastructure by delaying any property tax payments to local governments on the front lines of the COVID-19 pandemic. Many special districts are heavily reliant on their share of the local one percent ad valorem property tax that property owners must pay by April 10. This tax is collected by counties and distributed to local agencies shortly thereafter.
More recently there has also been a push for the Governor to use his emergency powers to provide a blanket deferral of property taxes as evidenced by a letter issued the California Taxpayers Association (Cal-Tax) and a coalition of interests on April 3. The Cal-Tax letter requested, “During a State of Emergency, Government Code Section 8571 authorizes the governor to suspend a statute, and we urge you to exercise your authority to partially suspend Revenue and Taxation Code sections 2618 and 4103 to allow payment of the second installment of property taxes by July 15, the extension date you already granted for income tax filing and payment.”
Practically speaking, the vast majority of taxpayers have already paid their property taxes via escrow accounts required under their mortgage. Private institutions typically retain these proceeds until the payment deadline. Therefore, delaying the deadline would have little benefit to most taxpayers while cutting off funding to local services. Moreover, under current law, county tax collectors already have leeway to waive certain fees and penalties for those taxpayers unable to transact by the deadline for logistical reasons.
To get the latest on COVID-19, visit CSDA’s COVID-19 Community. If you have any questions about the April 10 property tax deadline, you may contact CSDA Legislative Representative Anthony Tannehill via email at anthony@csda.net.
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