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Consider denying the Claims for Refund of Taxes of AT&T Mobility, LLC, Pacific Bell, Sprint Telephony PCS, LP, and T-Mobile West LLC, in the total amount of $349,436.83, plus interest, in unitary property taxes
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Published Notice Required? Yes ____ No _X _
Public Hearing Required? Yes ____ No _X _
DEPARTMENTAL RECOMMENDATION:
It is recommended that the Board deny the claims for refund of unitary property taxes of AT&T Mobility, LLC, Pacific Bell, Sprint Telephony PCS, LP, and T-Mobile West LLC ("Claimants") in the amount of $349,436.83, plus interest, on state-assessed property located in Solano County that is either owned or used by Claimants.
SUMMARY:
Under Article XIII, Section 19 of the California Constitution, certain property owned or used by telecommunication companies are annually assessed by the State Board of Equalization ("BOE"). The amount of such "unitary property" assessments attributed to the County by the BOE are then taxed by the County in accordance with a formula mandated by State law (Revenue and Taxation Code ? 100). The tax revenue is then distributed by the Auditor-Controller to all taxing entities in the county, including cities, special districts, and the County itself, with the County receiving 31% percent of the unitary tax revenue.
The Claimants have filed claims for refund of property taxes against the County and a number of other counties, essentially alleging that the formula in Revenue and Taxation Code ? 100 violates both Article XIII, Section 19, and Article XIIIA, Section 1 (Prop. 13), of the California Constitution. The claims are only for tax year 2014/15 and in the amount of $349,436.83, plus interest, which is the furthest back the Claimants may go under Revenue and Taxation Code ? 5097(a)(2). The counties are coordinating their responses and are uniformly denying the claims.
FINANCIAL IMPACT:
There is no financial impact to the County for denying the claims. The costs associated with pr...
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