2009 Annual Report Kenneth D. Stieger Assessor

Transcription

1 2009 Annual Report Kenneth D. Stieger Assessor County of Sacramento Office of the Assessor

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3 Table of Contents Message from the Assessor. 4 Role of the County Assessor. 5 Mission Statement. 6 Proposition Real Property Base Year Distribution. 8-9 Proposition 8 Decline in Market Value. 10 Proposition 8 for Cities and Unincorporated Area. 11 Foreclosures. 12 Assessment Appeals. 13 Property Taxes at Work Year History of Local Assessment Roll. 15 Assessor s Organization Chart Exemptions. 18 Exclusions. 19 Yearly Comparison of Staffing Levels. 20 Customer Service. 21 Property Tax Work Flow. 22 Yearly Comparison of Assessor s Workload Distribution of Secured Real Property Value by Property Types. 24 Local Assessment Roll Totals by Jurisdiction. 25 Parcel Analysis. 26 Business and Personal Property. 27 Visit or Contact Us. 28 Property Assessment Calendar. 29 County Executive and Board of Supervisors. 30 Special Thanks Annual Report Office of the Assessor 3

4 Message from the Assessor This was a historical year in the Assessor s Office. For the first time since Proposition 13 s passage in 1978, the value of the assessment roll declined over the previous year. In this case, not a small amount, but over $9 billion, or nearly 7% of the roll. Conforming to the provisions of Proposition 8, we reduced the assessed values on over 170,000 parcels, exceeding the 130,000 reduced at the peak of the 1990 s real estate recession. We also saw the largest number of Assessment Appeals filed, over 11,000. We had fewer new Assessors parcels created this year only 921. This reflected the absolute bottoming out of the development of new subdivision lots in our community. While all of this was occurring, the county budget suffered a huge blow from declining property taxes as well as sales tax revenues and other sources of county funds. As a result, our staffing levels continued to decline to a level not seen in the last 10 years as we were unable to fill vacant positions. While our staffing levels declined, our overall workload significantly increased due to the impacts of declining values, which yield a high volume of taxpayer contacts, assessment appeals and decline-inmarket value reappraisals. It is with no small measure of appreciation that I thank my remaining staff for their dedication and hard work. It has been a very trying year for them as colleagues have departed and their workload has increased. They have done a wonderful job in meeting the ever increasing demands placed on them. They continue to provide the exemplary customer service that I consider such a large part of our mission. We continue to emphasize innovation, improvement and creativity as we seek to do more with less. Our modern business application NewAIMS continues to provide new functionality for meeting our business needs. It will be instrumental in servicing our historical levels of assessment appeals and requests for review, and is a key piece of our long-term strategy for making this office ever more costeffective. We ve heard from you in record numbers this past year. Please stay in contact with my office as we strive to meet the needs of our taxpayers and the tax districts that depend on the revenues we generate. Sincerely, Kenneth D. Stieger County Assessor Annual Report County of Sacramento

5 Role of the County Assessor T he activities of the County Assessor, an elected official, are governed by the California Constitution, the laws passed by the legislature, and the administrative rules adopted by the State Board of Equalization. As the administrator of a county department, the Assessor is responsible for managing the Assessor s Office in an orderly and economical manner within budget constraints; adhering to provisions of the County Charter; coordinating activities with other county departments; and assuring personnel policies and practices conform to Civil Service rules and county personnel policies. Real Property Division (L-R) Jarret Stedifor, Curt Caldwell, Bill Silva Our Values Communication Achievement Competence Initiative Quality Service Responsibility Teamwork Continuous Improvement Respect Creativity 2009 Annual Report Office of the Assessor Trust 5

6 Annual Assessments T he County Assessor must annually assess all taxable property in the county, except for state-assessed property, to the person owning, claiming, possessing, or controlling the property on January 1. The duties of the County Assessor are to discover all assessable property, to inventory and list all taxable property, to value the property, and to enroll the property on the local assessment roll. By doing so, the Assessor ensures that all property owners are taxed at the legally-mandated level while districts that provide public services receive the funding to which they are entitled. Kenneth D. Stieger, Assessor and John Solie, Chief Assessment Standards Division Our Mission We will create equitable, timely, and accurate property tax assessments to fund public services. We will be a source of accurate and timely property information for local government and the community Annual Report County of Sacramento

7 Proposition 13 The Law California property tax law is based on the principles established by Proposition 13, an initiative approved by the voters of California in June, Among its key provisions are: Real property can only be reappraised upon a change in ownership or new construction. Otherwise, the assessed value reflects the value of the property as of March 1, This value is called the base year value of the property. The value can be increased by a cost of living adjustment up to a maximum of 2% per year if no appraisable activity occurs. The property tax rate is 1% of assessed value, plus an increment to retire voter-approved bonded indebtedness. The value established under Proposition 13 guidelines is often referred to as the factored Proposition 13 value. Proposition 13 did not recognize that market values could decline over time. As a result, it was amended by Proposition 8 in November 1978 to require the Assessor to enroll the market value of a property if it fell below its factored Proposition 13 value Annual Report Office of the Assessor 7

8 Real Property Base Year Distribution Secured Roll Proposition 13 and Proposition 8 Base Year Values Base Year Parcels Percent of Total Parcels Assessed Value Percent of Total Assessment , % $4,963,805, % , % 575,500, % , % 525,221, % , % 735,163, % , % 823,915, % , % 867,116, % , % 639,082, % , % 607,889, % , % 889,944, % , % 1,278,474, % , % 931,654, % , % 1,255,496, % , % 1,647,543, % , % 1,602,954, % , % 1,798,396, % , % 2,408,002, % , % 1,925,779, % , % 1,932,192, % , % 1,779,029, % , % 2,129,087, % , % 1,843,452, % , % 1,975,755, % , % 2,400,157, % , % 2,924,732, % , % 3,691,525, % , % 3,750,898, % , % 3,544,861, % , % 3,054,052, % , % 3,596,439, % , % 3,733,369, % , % 3,544,522, % , % 4,735,034, % , % 5,507,822, % , % 3,628,183, % , % 46,073,576, % Total 448, % $123,320,632, % Annual Report County of Sacramento

9 Real Property Base Year Distribution Secured Roll Proposition 13 Base Year Values Base Year Parcels Percent of Total Parcels Assessed Value Percent of Total Assessment , % $5,060,639, % , % 575,669, % , % 526,148, % , % 735,852, % , % 823,737, % , % 867,786, % , % 646,790, % , % 627,845, % , % 906,655, % , % 1,313,814, % , % 945,518, % , % 1,325,947, % , % 1,766,489, % , % 1,629,874, % , % 1,855,345, % , % 2,483,661, % , % 1,982,241, % , % 1,998,384, % , % 1,796,510, % , % 2,174,173, % , % 1,863,504, % , % 1,991,833, % , % 2,431,538, % , % 2,984,652, % , % 4,032,754, % , % 4,467,316, % , % 5,766,217, % , % 6,905,487, % , % 9,226,864, % , % 12,577,506, % , % 14,846,278, % , % 14,182,357, % , % 12,218,926, % , % 8,878,700, % , % 8,135,388, % *Total 448, % $140,552,415, % * Total does not include nontaxable and non-assessable parcels Annual Report Office of the Assessor 9

10 Proposition 8 Decline in Market Value For the last 3 years, the Assessor s Office has recognized the real estate market s significant decline in value. We have proactively reduced the assessed values of over 170,000 parcels for the fiscal year, per the provisions of Proposition 8. This follows reductions on over 50,000 properties in and over 90,000 properties in fiscal year These latest reductions will appear on tax bills issued in October Proposition 8 recognizes declines in market value for property tax purposes. As a result, Revenue & Taxation Code Section 51 requires the Assessor to annually enroll either a property s factored base year value, or its market value as of January 1st, whichever is less. Prop 8 assessments are temporary reductions. After a Prop 8 value has been enrolled, that property s value is reviewed each year as of January 1st to determine whether its current market value is less than its factored value. These values are not subject to the 2% cap on annual increases. At no time, however, may an assessed value exceed its Prop 13 factored base year value level. 20, , , ,000 Properties 120, ,000 80,000 60,000 40,000 20, Years Annual Report County of Sacramento

11 Proposition 8 Assessments for Cities and Unincorporated Area Parcels Assessed Value Prop 8 Value Reduction Amount 8,940 $2,375,779,373 $1,802,544,667 $573,234,706 29,622 $10,392,854,911 $8,125,366,119 $2,267,488,792 Folsom 8,323 $3,662,659,159 $3,217,689,911 $444,969,248 Galt 3,372 $897,924,448 $680,007,632 $217,916, $16,436,220 $12,399,723 $4,036,497 Rancho Cordova 8,627 $2,442,028,280 $1,972,158,912 $469,869,368 Sacramento City 56,096 $16,005,502,437 $12,265,510,708 $3,739,991,729 Unincorporated Area 61,636 $18,762,794,740 $14,481,039,335 $4,281,755, ,686 $54,555,979,568 $42,556,717,007 $11,999,262,561 Jurisdiction Citrus Heights Elk Grove Isleton Totals (Gross) 2009 Annual Report Office of the Assessor 11

12 Foreclosures Sacramento County Foreclosures What began a few years ago as a correction to an inflated residential market has now become an industry wide infirmity transcending all sectors of real estate. Everyone in the region has been touched in one way or another. Sacramento Business Review Sacramento County has seen foreclosures rise from near zero to record numbers over the last 3 years. The number of filings continues at a very high level in the summer of Foreclosures are a critical driver in the overall decline in real estate values Number Feb 06 Mar 06 Apr 06 May 06 June 06 July 06 Aug 06 Sept 06 Oct 06 Nov 06 Dec 06 Jan 07 Feb 07 Mar 07 Apr 07 May 07 June 07 July 07 Aug 07 Sept 07 Oct 07 Nov 07 Dec 07 Jan 08 Feb 08 Mar 08 Apr 08 May 08 June 08 July 08 Aug 08 Sept 08 Oct 08 Nov 08 Dec 08 Jan 09 Feb 09 Mar 09 Apr 09 May 09 June 09 July 09 Month Annual Report County of Sacramento

13 Assessment Appeals Year Assessment Appeals Filed Taxpayers have the right to appeal their property s valuation. There is a $30 fee to do this. The Assessment Appeals Board considers all evidence presented by the property owner and the Assessor s Office at formal hearings. They then rule on the value of the property in question. Taxpayers are first encouraged to call our office and ask for a review of their assessment before filing an appeal , , , , , , , , , , , , ,909 12,000 Assessment Appeals Filed 10, Years 2009 Annual Report Office of the Assessor 13

14 Property Taxes at Work Property Tax Revenue Allocations Property taxes constitute the largest source of money for Sacramento County s general fund. Property taxes are a 1 percent tax on a property s assessed value under California s laws. The Assessor s net property tax roll for fiscal year totals $126,456,362,150. Property tax revenue supports over 175 local government agencies, including schools, cities, redevelopment agencies and special districts such as fire, park, community service and cemetery districts. Consequently, tax dollars fund a variety of services. Distribution of Property Taxes County 16.3% Redevelopment Agencies 6.3% Cities 10.6% Special Districts 17.5% Schools 49.3% Annual Report County of Sacramento

15 20 Year History of Local Assessment Roll For the first time since the passage of Proposition 13 in 1978, the assessment roll suffered a year over year decline in assessed value. Year Gross Roll Values Change from Prior Year Percent Change $42,237,297,589 $4,574,150, ,246,201,216 5,146,394, ,646,394,762 3,382,193, ,990,099,339 1,443,986, ,277,885,002 1,287,785, ,986,208, ,323, ,277,136, ,927, ,923,758, ,621, ,124,740,193 2,200,982, ,683,947,741 3,559,207, ,492,664,146 4,808,716, ,865,516,436 5,372,852, ,723,045,414 6,857,528, ,081,667,450 7,358,622, ,302,760,110 10,221,092, ,328,224,993 14,025,464, ,674,965,255 16,346,740, ,707,020,735 12,032,055, ,630,362,269 2,923,341, $131,627,517,985 $9,002,844, $140 $120 Value in Billions $100 $80 $60 $40 $ Roll Years Annual Report Office of the Assessor 15

16 Assessor s Organization Chart Kenneth D. S Assesso Kathleen Ke Assistant Ass Joanie Billings Chief Technical Services Appraisal Support Section John Solie Chief Assessment Standards Michele Hom ASO III Administration Division Shawn Ech Principal IT A Systems Div Network Sec Developme Section Data Entr Scanning Sec Effective July 1, Annual Report County of Sacramento

17 eth D. Stieger Assessor een Kelleher ant Assessor Mary Conde Chief Business Personal Property Curt Caldwell Chief Residential Valuation Cynthia Hennessy Chief Commercial Valuation work Section Audit Crew A Property Transfer Section Commercial North Crew velopment Section Audit Crew B Electronic Enrollment Commercial South Crew Audit Support Mapping Section Institutional Exemptions Section Residential North Crew Homeowner Exemptions Section awn Echols pal IT Analyst ems Division ata Entry ning Section Residential South Crew 2009 Annual Report Office of the Assessor 17

18 Exemptions E xemptions provide that certain properties or portions thereof are exempt from taxation under the California Constitution. Exemptions are not automatic. A claim form must be filed and approved by the Assessor s Office. Homeowner s Exemption A property owned and occupied as a principal residence may qualify for a homeowner s exemption. This exemption will reduce the annual tax bill by about $70. Disabled Veteran s Exemption A veteran who is totally disabled (service-related 100%) or blind in both eyes or has lost the use of more than one limb as a result of injury or disease during service may apply for a Disabled Veteran s Exemption. Institutional Exemptions Real and personal property used exclusively by a church, college, cemetery, museum, school, or library may qualify for an exemption from property taxation. Homeowner s Exemption Unit (L-R) Mary Lou Xiong, Penny Miller, Lan Phung Annual Report County of Sacramento

19 Exclusions E xclusions Property Transfer Unit (L-R seated) Yvette Carson, Luz Ramos, Laura Carder, (L-R Standing) John Yang, Elizabeth Egoavil, Dimitri Ratz, Imelda Alcantara, Simon Xiong, Dena Sablan, David Silva, Tiffany Morse, Dave Vega provide that some changes in ownership are excluded from reassessment. The Assessor is required to assess property at its current market value when a change in ownership occurs. There are, however, some changes in ownership that do not trigger a reappraisal. Refinancing Refinancing is not considered a change in ownership, though documentation is required. Husband and Wife Transfers of property between husband and wife do not result in a reassessment. Parent-Child and Grandparent-Grandchild In some cases, transfers of property between a parent and child or between a grandparent and grandchild will not cause a reassessment. Prop 60 Base Year Values Homeowners who are at least 55 years old, or are severely and permanently disabled, may be able to transfer their Prop 13 assessed valued from their current home to a replacement home when they move. An application must be filed with the Assessor s Office Annual Report Office of the Assessor 19

20 Assessor s Office Staff Yearly Comparison of Staffing Levels Permanent Positions Fiscal Years Business Property Division (L-R Standing) Vince Gezi, James Balash, Jim Coombes, Adam Duvall, Tamara Sturgis, Janet Murchison, Padraic Stephens, Mark Minor (L-R Seated) Angelina Grieco, Lynn Drab, Joanne Takaki Annual Report County of Sacramento

21 Customer Service Comes First An informed public is the key to good customer service and to insuring that every property owner and resident receives fair and prompt treatment. Joanne Knauer, Nina Sidhra and Vicki Westfall assist with the phones. Customer Contacts Lobby Services Available Parcel Maps Assessed Values Ownership Information Building Characteristic Information Customer Service Counter 12,018 Website 3,868 Information Available Online Tax Bill Information General Assessment Information Property Maps Forms Important Dates Calendar Telephone Inquiries 115, Annual Report Office of the Assessor 21

22 Property Tax Work Flow CLERK-RECORDER Provides copies of all deeds and other recorded documents CITIES and COUNTY Provides copies of all building permits issued ASSESSOR Assesses all real and personal property located throughout the county AUDITOR-CONTROLLER Applies tax rates and special assessments and prepares tax bills TREASURER- TAX COLLECTOR Issues tax bills, Collects and refunds payments AUDITOR-CONTROLLER Allocates the monies to over 175 local taxing agencies Annual Report County of Sacramento

23 Yearly Comparison of Assessor s Workload Real Property Appraisals Sales and Transfers 54,801 53,739 37,314 33,827 54,734 New Construction Permits 19,128 25,232 10,680 9,597 7,541 Prop 8 Assessments 1, ,862 90, ,686 Business and Personal Property Boats 10,225 10,968 11,551 11,414 10,553 Aircraft Business Accounts 34,656 36,456 39,575 39,949 34,930 Audits Mapping Services Assessor s Maps Maintained 8,880 9,004 9,168 9,260 9,336 New Parcels Created 8,854 10,196 12,101 3, Documents Processed Ownership Changes 129,501 94,184 72,053 70,964 77,603 Mailing Address Changes 29,608 50,875 61,959 36,713 19,093 Prop 60 Base Year Transfers Parent/Child Exclusions 3,651 5,923 4,695 3,104 3,263 Exemptions Homeowner s 37,547 27,861 18,115 18,481 21,224 Institutional 3,933 3,320 3,126 2,915 3,559 Disabled Veteran s 1,568 1,659 1,685 1,780 1,880 Assessment Appeals and Requests for Review Appeal Applications 1,823 1,398 1,347 5,138 11,909 Review Requests ,920 10, Annual Report Office of the Assessor 23

24 Distribution of Value by Property Types Secured Real Property Value Property Types Number of Assessments Value Value Ratio of Current Year to Prior Year Single Family Residential 374,079 $73,348,289,624 $83,868,359, Mobile Homes 7, ,864, ,049, Multi Family Residential 20,660 11,812,102,767 11,922,874, Vacant Residential Land 16,908 1,892,894,065 2,282,823, Improved Commercial 13,123 24,345,500,517 22,604,800, Vacant Commercial Land 1, ,680, ,090, Improved Industrial 4,598 5,731,734,268 5,382,430, Vacant Industrial Land 1, ,969, ,006, Vacant & Improved Rural 5,668 1,823,264,078 1,896,246, Unrestricted Rural 1, ,433, ,550, Restricted Rural 1, ,971, ,388, Oil, Gas, Mineral Rights ,586, ,780, Other 22,313 1,113,340,100 1,074,909, Totals 471,133 $123,320,632,120 $132,111,309, Annual Report County of Sacramento

25 Local Assessment Roll Totals by Jurisdiction Jurisdiction Current Year Change Percent of Current Roll Citrus Heights $6,233,782,842 $5,845,021,324-6% 4% Elk Grove 17,400,212,319 15,466,200,283-11% 12% Folsom 10,933,240,183 10,664,632,604-2% 8% Galt 1,782,186,519 1,563,703,049-12% 1% Isleton 64,645,475 62,315,962-4% 1% Rancho Cordova 7,087,613,603 6,754,934,538-5% 5% Sacramento City 44,536,794,663 42,021,205,601-6% 32% Unincorporated Area 52,591,996,513 49,222,157,483-6% 37% Total Value (Gross) $140,630,472,117 $131,600,170,844-7% 100% Percentages rounded to the nearest whole number. Marine and Aircraft Unit (L-R) Sarah Andrews, Jarian Westfall, Cecile Twilla, Jason Reed 2009 Annual Report Office of the Assessor 25

26 Parcel Analysis Real Property Parcel Analysis by Jurisdiction Jurisdiction Single Family with HEX* Single Family without HEX* Multi Family Residential Vacant Land Commercial Agricultural Mobile Homes Other Totals Citrus Heights 14,466 8,044 1, , ,369 Elk Grove 28,874 16, , ,950 Folsom 14,159 6, , ,943 Galt 4,032 2, ,754 Isleton Rancho Cordova 9,565 6, ,921 1, , ,138 Sacramento City 68,755 51,619 8,528 8,356 7, ,222 4, ,663 Unincorporated Area 95,377 53,175 7,400 8,079 6,292 2,518 7,860 4, ,748 Total 235, ,269 19,105 25,441 17,295 2,587 15,940 11, ,133 *Homeowner s Exemption Annual Report County of Sacramento

27 Business and Personal Property Unlike real property, business personal property is appraised annually at current market value. Business inventory and licensed vehicles are exempt from taxation. All businesses must annually file a property statement that lists the costs of supplies, equipment, and fixtures at each business location. The Assessor has implemented a new program to allow businesses that file property statements to use the Standard Data Record (SDR) Program to file electronically via the Internet. Personal property also includes such non-business items as boats and aircraft. Personal Property Assessment Analysis Unsecured Personal Property Gross Value Aircraft $ 140,370,936 Boats/Vessels $213,298,614 Fixtures $1,755,073,630 Personal Property $3,190,556,168 Secured Personal Property Fixtures $1,272,183,640 Personal Property $1,114,479,071 Mary Conde Michael Shannon 2009 Annual Report Office of the Assessor 27

28 Visit or Contact Us T he County Assessor s Office is located at 3701 Power Inn Road, Suite 3000, Sacramento, CA Visitor parking is available at the main entrance of the building. Real Property Assessment Business Property Assessment (916) assessor@saccounty.net (916) PPDutyApr@SacCounty.net Property Assessment Information Business Property Information Assessor s Request for Review (Prop 8) Assessment Records Reporting Changes in Business Location Exemptions Fixtures Boat and Aircraft o Homeowners, Veterans, Charitable Property Transfer Information o Parent to Child Exclusions o Prop 60 Base Year Value Transfers Highway 50 West from Placerville Take the Howe Ave/Power Inn Road exit, turn left over the freeway. Proceed on Howe Avenue (which becomes Power Inn Road) for approximately 1 mile to 3701 Power Inn Road. Highway 50 East from downtown Sacramento Take the Howe Ave/Power Inn Road exit and turn right off freeway. Proceed on Howe Avenue (which becomes Power Inn Road) for approximately 1 mile to 3701 Power Inn Road. Taking Sacramento Light Rail Take appropriate train to the Granite Park station and walk south on Power Inn Road or take the Granite Park shuttle bus to 3701 Power Inn Road Annual Report County of Sacramento

29 Property Assessment Calendar January 1 Lien date for next assessment roll year. This is the date when taxes for the next fiscal year become a lien on the property. February 15* Deadline to file all exemption claims. April 1 Due date for filing statements for business personal property, aircraft and boats. Business property owners must file a statement each year detailing the cost of all supplies, machinery, equipment, leasehold improvements, fixtures and land owned at each location within Sacramento County. April 10* Last day to pay second installment of secured property taxes without penalty. This tax is based on property values determined for the January lien date 15 months earlier. May 7 Last day to file a business personal property statement without incurring a 10% penalty. June 1 First day to file informal review with Assessor for Prop 8 reassessment. July 1 Close of assessment roll and the start of the new assessment roll year. The assessment roll is the official list of all taxable property within the county. July 2 First day to file assessment appeal applications with the Clerk of the Board of Supervisors. August 31* Last day to pay taxes on unsecured tax bills without penalty. September 1 Last day to request mailing address changes for annual secured tax bill. November 30* Last day to file an assessment appeal application for reduced assessment with the Clerk of the Board of Supervisors for annual tax bills. December 10* Last day to pay first installment of secured property tax bills without penalty. * If date falls on Saturday, Sunday or legal holiday, mail postmarked on the next business day shall be deemed on time Annual Report Office of the Assessor 29

30 The success of the Sacramento County Assessor s Office is ensured because of the support and cooperation of the County Executive and Board of Supervisors. County Executive Terry Schutten Sacramento County Board of Supervisors District 1 Roger Dickinson District 2 Jimmie Yee District 3 Susan Peters District 4 Roberta MacGlashan District 5 Don Nottoli Annual Report County of Sacramento

31 Special Thanks To the following Agencies and Departments for their Cooperation and Support County Office of Communication and Information Technology County Clerk-Recorder County Auditor-Controller County GIS Department County Counsel County Tax Collector California State Board of Equalization California Assessors Association Design and Layout Maitri Graphics Content and Staff Photos Yvonne Littleton, Sr. Appraiser, Assessment Standards Division 2009 Annual Report Office of the Assessor 31

32 Office of the Assessor County of Sacramento 3701 Power Inn Road, Suite 3000 Sacramento, CA 95826