By @Marcus Detwiler
The California Department of Tax and Fee Administration (CDTFA) has set April 30 as the deadline for counties to provide essential local agency registration information related to Proposition 19 (2020) property tax reimbursements. Recall that while Proposition 19 amended the State Constitution, it did not include implementation statutes; this exchange of data is necessary in facilitating potential transfers of property tax by CDTFA and the California State Board of Equalization (BOE) as outlined within the framework of Proposition 19.
Proposition 19 allows certain taxpayers to transfer the taxable value of a primary residence to a replacement primary residence, regardless of the replacement residence's value or location. This may result in a tax revenue gain or loss to jurisdictions – reimbursement may be available to local agencies for revenue losses.
To effectuate these transfers and facilitate the registration of local agencies, CDTFA developed a spreadsheet that all counties in California would need to complete; the spreadsheet requests basic information about local agencies from within each county, including the name of the local agency, the local agency federal employer identification number (FEIN), and the local agency’s warrant mailing address. Click here to review the document provided by CDTFA to counties for this purpose. For those seeking further insight into the program and its implications, CDTFA’s website provides information on Proposition 19 and its implementation.
Special districts should be prepared to provide this information to their respective county upon its request for information as part of the Proposition 19 implementation process. In instances where clarification or assistance is needed regarding the registration process within a specific county, CSDA advises its members to communicate directly with their respective county offices.
Importantly, CSDA has been given reason to expect that the various funds associated with Proposition 19 remain devoid of any monies to provide any disbursements to local agencies in the immediate future. Special districts should remain mindful of this reality and plan accordingly for any potential financial implications.
The February 20 edition of CSDA eNews included a previous article in this discussion based on initial information provided to CSDA in connection to early outreach efforts in at least one county. This article follows up and builds upon that initial article in an effort to further delineate the purpose behind the request for information.
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