CBPA's California Legislative Update 4/10/2020
- PROPERTY TAXES DUE TODAY IN MOST COUNTIES
- CONTINUING EFFORT FOR PROPERTY TAX PENALTY RELIEF
- HERE IS A CURRENT LIST OF COUNTY TAX RESOURCES
- PROPERTY TAX – PENALTY WAIVERS
- MEDIA: PROPERTY TAXES – MOST STICKING TO DEADLINE
- INDUSTRYWIDE LEGISLATIVE MEETING
- CBPA 2020 CALENDAR
PROPERTY TAXES DUE TODAY IN MOST COUNTIES
Despite the fact that more than a million Californians have recently lost their jobs, aren’t working as many hours, or have seen their own businesses revenues disappear, the second installment of property taxes are due today in 54 of our state’s 58 counties.
Both residential and commercial property owners that are unable to pay property taxes today because of the health disaster caused by COVID-19 and the ensuing economic disaster the shelter-at-home orders and mandatory closures of most businesses have caused, are at risk of their county adding insult to injury by taking on a 10% penalty.
Property taxes in California are paid in two installments and the second one is due today, four weeks into a health crisis. Typically, if property taxes come in after today, counties impose a 10% fee. If they aren’t paid by June 30, an additional 1.5% late fee is charged each month.
Our industry has asked for a simple waiver of the penalty until June to help those companies that have been severely impacted by this crisis.
Only four counties – San Mateo, San Francisco, Kern, and Imperial – have moved to provide an up-front grace-period for property taxpayers. Tax Collectors in the other counties have chosen to stick with the status quoprocess, which means taxpayers unable to meet this payment for COVID-19 related reasons will be assessed a penalty, and then retroactively have to fight to get the penalty waived.
County-By-County Property Tax COVID-19 Resources:
This is exactly the type of unneeded stress and burden that the Governor and local officials proactively sought to relieve tenants of.
Here is a story from the Sacramento Bee covering CBPA’s efforts to get counties to provide some reasonable relief from penalties for companies impacted by COVID-19 related economic issues.
CONTINUING EFFORT FOR PROPERTY TAX PENALTY RELIEF
A letter will be sent to all county Tax-Collectors requesting information about the number of waivers requested and the number of waivers granted. We hope to use this information to inform policymakers about the impacts on property taxpayers.
We have been working on your behalf to get an automatic waiver established for any late payments of the April 10 second installment property tax.
CBPA LETTER: March 24, 2020, regarding property taxes/COVID-19:
COALITION LETTER: April 3, 2020, regarding property taxes/COVID-19:
Sadly, the counties have responded that although they will take the COVID-19 pandemic into account, most have not done anything to automatically waive penalties. So far, the County of San Francisco is the only county to push of the deadline and waive penalties (until May 4).
Here is the CSAC release which announces the status quo:
CBPA RESPONSE: April 6, 2020 Letter to CSAC on COVID-19 Property Tax Issues
HERE IS A CURRENT LIST OF COUNTY TAX RESOURCES
The second installment of property taxes are due today.
Pay your taxes, as normal, if you can.
However, if you are having issues directly related to the COVID-19 shut-down in the State of California, and need information about what your county is doing to help, see below to find a county-by-county breakdown of what each county is doing and how to find more information. In most counties you will need to request the assessed penalty be waived after the fact.
CBPA has been working to try to get statewide relief and will continue to advocate for a solution that puts less stress and burden on companies that are already being devastated by this crisis. But at this point each county is implementing its own tax collection and penalty waiver process.
County-By-County Property Tax COVID-19 Resources (fixed link):
We would like to thank our friends at the Howard Jarvis Taxpayers Association for collecting this information and sharing it with our members.
PROPERTY TAX – PENALTY WAIVERS
Earlier this week, on behalf of the commercial, residential, and retail real estate industry, Rex Hime, President and CEO of California Business Properties Association, sent a letter to the California State Association of Counties (CSAC) asking they urge their members to work with property owners during the COVID-19 pandemic.
CBPA specifically called on CSAC to urge its members to do the following:
- Allow a limited time grace period for waiving late fees
- Provide a process to request waivers online
- Create standard form for companies that operate in multiple counties
- Track the number of waivers requested in a statewide database
- Report number of waivers granted
Commercial properties have been severely impacted, ranging from shut downs of full shopping malls and offices, to closures of gyms, movie theaters, nail salons, and thousands of other businesses by government mandate. Elected officials have understandably granted deferrals on rent payments since retail and service sales have been halted in all non-essential establishments, which further restricts cash-flow on top of the overall economic slowdown.
We understand each county is independent, and that property taxes fund extremely important governmental functions, and do not want to interrupt payments from companies that are in a position to do that, but for those companies that are having cash-flow issues directly related to COVID-19 shelter-at-home orders, we ask that your organization encourage your members to:
We urge our members to contact your own county Board of Supervisors and advocate for local relief.
April 6, 2020 Letter to CSAC on COVID-19 Property Tax Issues
MEDIA: PROPERTY TAXES – MOST STICKING TO DEADLINE
Click here for a story focusing on San Francisco and San Mateo, noting that most other counties are not providing relief.
Sacramento property taxes due Friday to avoid penalties. Only four counties OK’d payment delay. Click here for the story.
INDUSTRYWIDE LEGISLATIVE MEETING
Despite the fact that we are not sure when the Legislature will return, and when they do, what the plan is for taking up legislation, over forty commercial, industrial, and retail real estate industry leaders gathered on a Zoom meeting to review more than 500 bills introduced in 2020 that impact our industry.
Setting positions and prioritizing legislative bills is an extremely important activity to provide your day to day staff in Sacramento the knowledge and tools to work with legislator, committee staff, and other interested organizations, to represent your interests.
We thank all of our members that provided input, analysis, and direction on that massive pile of bills!
CBPA 2020 CALENDAR
Tuesday-Wednesday, June 9-10
California Commercial Real Estate Summit
Cal Chamber, Sacramento
DUE TO SHELTER IN PLACE ORDERS THIS EVENT IS PENDING
Thursday, November 5
CBPA Board Meeting & Industry Awards Dinner
The Renaissance Hotel, Newport Beach
DUE TO SHELTER IN PLACE ORDERS THIS EVENT IS PENDING
