Board of Equalization to Draft Legislation and a Constitutional Amendment to Provide Relief to Taxpayers Impacted by the COVID-19 Pandemic
Board Member Malia M. Cohen's COVID-19 Relief Motion Adopted Unanimously by the Board of Equalization
July 27, 2021
Sacramento — Today, the California State Board of Equalization (BOE) unanimously adopted a motion by Board Member Malia M. Cohen to provide relief for taxpayers impacted by the COVID-19 pandemic and other emergencies. This relief is based upon proposals contained in a memorandum submitted by Board Member Cohen at the April 27, 2021 Board Meeting.
Board Member Malia M. Cohen commented, "The Board of Equalization must seek the broadest and most compassionate relief for taxpayers who have been impacted by the COVID-19 pandemic."
Cohen continued, "More than a year ago, few of us could have imagined the disruptions to life that have occurred as result of the COVID-19 pandemic. When the Governor issued his "stay at home" order on March 19, 2020, we all expected the order to be temporary. Unfortunately, due to the pandemic, restrictions in various forms have extended over 16 months and disruptions will likely continue into the future.”
Cohen continued, "The Board's action today seeks to provide statutory and constitutional relief for property taxpayers impacted by the COVID-19 pandemic, and future emergencies or natural disasters. Despite the open heart and good will of all involved, including our own BOE staff, sometimes the only solution is constitutional and statutory relief. When the law provides limited options to provide relief, the law should be changed so that relief is possible.”
Cohen concluded, "I look forward to working with the Legislature and BOE staff to ensure that these compassionate relief measures are adopted."
The motion directs the BOE's Executive Director and her staff to draft language for statutory legislation and language for a legislatively-referred constitutional amendment to increase the power of the BOE to provide relief to taxpayers impacted by the COVID-19 pandemic; and, to extend the constitutionally-mandated deadlines for taxpayers to complete actions required to preserve property tax benefits.
The statutory language would include:
Granting power to the BOE, under Revenue and Taxation Code section 155, to extend the deadline for which taxpayers must file business property statements, applications for assessment appeals, change in ownership statements for legal entities, and applications for exclusions; and,
Granting power to the BOE, under Government Code section 15620, to extend time beyond 30 days for persons to file reports to the Board in case of emergency.
The legislatively-referred constitutional amendment language would:
Provide for a narrowly-drawn amendment to Sections 2 and 2.1 of Article XIII A of the Constitution to provide relief to taxpayers — including seniors, disabled people, and victims of wildfires and or natural disasters — who were prevented from transferring their base-year property values to new properties during the COVID-19 pandemic, by extending the deadline for such transfers.
The proposed statutory relief could be introduced as a legislative bill and would require a majority vote in the State Assembly and the State Senate to become law with the Governor's signature. The proposed constitutional relief could be introduced as a legislatively-referred constitutional amendment. A legislatively referred constitutional amendment would require a 2/3 vote of both the Assembly and the Senate, and would be referred to the voters for approval at the next General Election, likely November 2022.
On March 4, 2020, the Governor proclaimed a State of Emergency in response to COVID-19.
On March 19, 2020, the Governor issued the Stay at Home Executive Order N-33-20 directing ". . . all individuals living in the State of California to stay at home or in their place of residence except as needed to maintain continuity of operations of the federal critical infrastructure sectors . . ."
On June 11, 2021, the Governor issued Executive Order N-07-21 terminating the Stay at Home Executive Order N-33-20.
The relief proposed in Board Member Cohen's motion would be totally consistent with the relief that has been extended to other taxpayers and stakeholders by the Internal Revenue Service; the Franchise Tax Board; and, through various Governor's Executive Orders extending property tax deadlines (Executive Order N-61-20); and by the Governor's Executive Order extending deadlines for Assessment Appeals Boards to complete official acts (Executive Order N-72-20), and through the enactment of AB 107. (Chapter 264, Statutes of 2020), that extended the two-year deadline for Assessment Appeals Boards to render final decisions to March 31, 2021, and AB 137 (Chapter 77, Statutes of 2021) that further extended the two-year deadline for Assessment Appeals Boards to render final decisions to December 31, 2021, retroactive to March 4, 2020 (the date that the Governor declared a State of Emergency in response to COVID-19).
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State Board of Equalization Member Malia M. Cohen represents nearly 10 million constituents residing in 23 counties in Northern and Central California, extending from Del Norte County in the north to Santa Barbara County in the south. Board Member Cohen is the youngest Constitutional Officer serving in California.
The Board of Equalization is California's statewide elected tax board. Its five members include four members elected in districts, and the State Controller. Under its constitutional mandate, the BOE oversees the assessment practices of the state's 58 county assessors, who are charged with establishing values for approximately 13.6 million assessments each year. In addition, the BOE assesses the property of regulated railroads and specific public utilities and is responsible for the alcoholic beverage tax and tax on insurers.
Note: This news release may discuss complex tax laws and concepts. It may not address every situation and is not considered written advice. Changes in law or regulations may have occurred since the time this news release was written. If there is a conflict between the text of this news release and the law, decisions will be based upon the law and not this news release.