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Consider Denying the Claims for Refund of Taxes of AT&T Communications, AT&T Mobility, LLC, Pacific Bell, Sprint Telephony PCS, LP, and T-Mobile West LLC, in the total amount of $415,897.46, plus interest, in unitary 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 consider denying the claims for refund of unitary property taxes of AT&T Communications, AT&T Mobility, LLC, Pacific Bell, Sprint Telephony PCS, LP, and T-Mobile West LLC ("Claimants") in the amount of $415,897.46, plus interest, on state-assessed property located in Solano County that is either owned or used by Claimants.
SUMMARY:
Under state law, 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 that is collected locally 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 30% percent of the unitary tax revenue.
In 2018, the Claimants (with the exception of AT&T Communications) filed claims for refund of property taxes against the County and several other counties, alleging that the formula the California Constitution. The claims filed in 2018 were for tax year 2014/15, which was the furthest back the Claimants could go under Revenue and Taxation Code ? 5097(a)(2) (4 years). On May 14, 2019, the Board rejected those claims and the County subsequently entered into a tolling agreement to postpone any lawsuit through June 30, 2020, to allow for the Claimants to pursue a legislative "fix" as well as the litigation of a "test case" in Riverside County.
The sa...
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