Grand jury: Fresno County farm-tax hikes appropriate

By Kurtis Alexander - The Fresno Bee -

The much-criticized tax hikes that hit Fresno County farmers over the past two years got validation this week from a report by the grand jury.

The citizen-investigations panel found that the county Assessor-Recorder's Office acted appropriately when it raised property taxes for thousands of agricultural landowners -- 23% on average just last year -- despite widespread claims that the increases were unwarranted.

The tax hikes, according to the Assessor's Office, were the result of rising crop values, and Assessor Paul Dictos said Wednesday that farmers will likely see taxes rise again next year as the Valley's agricultural industry continues to flourish.

"This report shows that I'm doing my job," Dictos said Wednesday.

Dictos won elected office two years ago pledging to update the county's out-of-date taxing procedures. The product of his effort was higher land valuations -- and hence higher taxes -- for farmland in the Williamson Act, a conservation program that generally assigns lower tax values to ag property.

The total tax value of ag property, under Dictos, is up 59% over five years ago -- to $9.2 billion -- the grand jury report notes. The value of most other property, meanwhile, has remained flat or is down.

The report calls the revised tax roll "accurate and timely," and grand jury Foreman Mark Kalchik said the investigation did not find any problems with the new Williamson Act tax calculations.

Under the Williamson Act, taxes are based on a parcel's income potential in agriculture instead of the parcel's market value, which generally nets a lower tax.

Dictos said that rising prices for pistachios, almonds and raisins would likely continue upward pressure on property taxes in the coming year.

County Supervisor Phil Larson, who represents Fresno County's rural west side, has been critical of the tax increases.

Despite Dictos' numbers and the grand jury report, Larson said it's strange that Fresno County farmers have been hit with larger tax hikes than their neighbors.

"If the other counties aren't doing this, why is Mr. Dictos so right? Are they all wrong?" Larson said.

Fresno County reigns as the top agricultural producer in the state with its wide variety of tree fruit, vineyards and ranchland.

The grand jury report is the effort of a volunteer group. The group is empowered by the Superior Court and was given access to county records for its investigation.

The group's members, however, have no expertise in the subject matter and their findings have no legal bearing.

Fresno County Farm Bureau Executive Director Ryan Jacobsen said the report didn't go far enough to convince him that the recent tax hikes are 100% legitimate.

"I don't think it either adds or distracts from the argument. It doesn't provide enough detail," Jacobsen said.

The Assessor's Office was investigated because of reports in The Bee about the tax increases on Williamson Act property, the grand jury report suggests.

Roughly 14,000 parcels benefit from the Williamson Act in Fresno County, more than anywhere else in the state.

Even with the recent tax increases, landowners will save upwards of $25 million this year because of the agricultural tax breaks.

The county will collect roughly $573 million in property taxes this year. The money will go to cities, schools, special districts and county government.