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Approve the write-off of accounts receivable due to Solano County in the amount of $1,898.42 related to a supplemental property tax refund (4/5 vote required); Discharge the Auditor-Controller's Office from further collection efforts; and Authorize the Auditor-Controller's Office to remove this account from the County's accounting records
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Published Notice Required? Yes ____ No _X _
Public Hearing Required? Yes ____ No _X _
DEPARTMENTAL RECOMMENDATION:
It is recommended that the Board of Supervisors authorize the Auditor-Controller to:
1. Write-off accounts receivable due to Solano County in the amount of $1,898.42 related to a supplemental property tax refund (4/5 vote required);
2. Discharge the Auditor-Controller's Office (ACO) from further collection efforts; and
3. Authorize the Auditor-Controller's Office to remove this account from the County's accounting records.
SUMMARY/ DISCUSSION:
On April 23, 2013, the ACO Property Tax Division issued a supplemental property tax refund to Bank of New York Mellon (BNY) for $3,796.84. A supplemental refund results when there is a reduction in the value of property usually due to a change in ownership. Bank of New York Mellon took possession of the property on April 6, 2012. Because the County's records indicated that BNY owned the property at the beginning of FY2012/13, up to the date of the refund, BNY received the entire refund.
After the refund was issued, our office was notified that the property had been sold to SDS Realty Corporation (SDS) on January 7, 2013; therefore, SDS was entitled to 50% of the FY2012/13 supplemental property tax refund. However, since the subsequent change of ownership was not recorded prior to the issuance of the refund to BNY, the full refund was paid to BNY resulting in an overpayment of $1,898.42. Subsequently, the Auditor-Controller's Office issued SDS its 50% share of the refund.
The ACO made numerous attempts to collect the overpayment f...
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