Monday, July 13, 2009

San Mateo Report Grand jury claims county missing out on money

July 10, 2009, By Michelle Durand

San Mateo County is losing out on potential revenue and risking hefty fines by neglecting its local program to enforce a state agriculture preservation law, according to a civil grand jury report which recommends an audit and revamp to bring the properties into line and onto the tax roll.

“When these properties are misclassified, the county isn’t getting taxes and, in this budget, think about what that means for the special districts that get that money,” said Jury Forewoman Virginia Chang Kiraly.

The California Land Conservation Act — better known as the Williamson Act — promotes agriculture and open space by saving landowners 20 percent to 75 percent in property tax annually.

The act creates an arrangement between counties and cities to voluntarily restrict the land to agricultural and open-space uses for a rolling 10-year contract. The land can have an individual house on it but it does not meet the standard if there is only a residence without agriculture. The landowners’ property taxes are reduced and local governments participating receive an annual payment in reimbursement. The county received $59,338 for fiscal year 2006-07 for 540 parcels.

The grand jury found the county’s compliance obligations have “been seriously neglected during the last 20 years” and agricultural lands may be significantly underassessed. Without a property strategy and update, the county is potentially missing out on precious money — even at $50,000 to $60,000, it adds up over two decades, Chang Kiraly said — and risking fines. In 2007, the county was fined $74,000 because six property owners violated the law. In response, a consultant was hired to improve the program and prevent future breaches of contracts.

As part of the state budget crisis, the state may opt to suspend repayments for the Williamson act properties but the proposal is a “moving target” and shouldn’t be reason to hold up changes, Chang Kiraly said.

The suspension may only be one year and the county needs to be ready to go when the program begins again, she said.

The county is currently working on a formal response to the report but it involves coordination between several departments including Planning and Building, the Assessor’s Office, Tax Collector and Controller’s Office, said Planning Director Lisa Grote.

http://www.smdailyjournal.com/article_preview.php?id=113092

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