There appears to be a two-pronged way to solve the problem:
1. The Marin County tax collector requires property owners to make a written request for property tax deferment and thus waives that applicant's interest and penalties.
2. The state of California makes county governments whole so as to not “let a liquidity issue become a solvency issue.”
1. The Marin County tax collector requires property owners to make a written request for property tax deferment and thus waives that applicant's interest and penalties.
2. The state of California makes county governments whole so as to not “let a liquidity issue become a solvency issue.”
[UPDATE 3.31.20]: If you have suffered a loss of income related to COVID-19, the County of Marin’s Department of Finance wants to hear from you at 415.473.6154 or TaxCollector@marincounty.org.
The Marin County Board of Supervisors this morning voted to send an urgent letter to the State of California asking that the state offset a loss in revenue that would come from allowing for deferment of the second scheduled property tax payment on April 10 for those who can’t afford to pay it because of loss of income related to the COVID-19 outbreak. County Administrator Matthew Hymel and County Tax Collector Roy Given both explained the county’s predicament to the board.
“Both the state and county have a shared interest to have those who are able to pay the property tax pay it,” Hymel told the board. “The loss of current outstanding property taxes right would be a tremendous hit to our public agencies providing critical services.”
Hymel asked the board if he could report back to them later on April 21 with additional options once the county gets a handle on the delinquency rate of property tax payments after the April 10th deadline. Given noted that the county’s usual “Penalty Review” process, which allows those who aren’t able to pay their property tax to have their case reviewed, now includes COVID-19 considerations. The review could allow for a waiver on late fees and penalties. County officials will be adding an FAQ on that process here.
[UPDATE 4.2.20]: Given made it official that that the property tax deadline won't be changed.
The Marin County Board of Supervisors this morning voted to send an urgent letter to the State of California asking that the state offset a loss in revenue that would come from allowing for deferment of the second scheduled property tax payment on April 10 for those who can’t afford to pay it because of loss of income related to the COVID-19 outbreak. County Administrator Matthew Hymel and County Tax Collector Roy Given both explained the county’s predicament to the board.
“Both the state and county have a shared interest to have those who are able to pay the property tax pay it,” Hymel told the board. “The loss of current outstanding property taxes right would be a tremendous hit to our public agencies providing critical services.”
Hymel asked the board if he could report back to them later on April 21 with additional options once the county gets a handle on the delinquency rate of property tax payments after the April 10th deadline. Given noted that the county’s usual “Penalty Review” process, which allows those who aren’t able to pay their property tax to have their case reviewed, now includes COVID-19 considerations. The review could allow for a waiver on late fees and penalties. County officials will be adding an FAQ on that process here.
[UPDATE 4.2.20]: Given made it official that that the property tax deadline won't be changed.
Since the days leading up to the official Bay Area shelter-in-place order, the Mill Valley Chamber has been feverishly hunting for every form of relief for Mill Valley businesses amidst the Covid-19 outbreak.
That's included a ban on evictions related to income loss due to Covid-19, all manner of loans and grants (esp. the new PPP program, stay tuned for more), timely webinars and unemployment benefit tutorials for those that have lost their jobs amidst the pandemic.
But one form of relief has been a tough nut to crack: property tax relief.
That's the concept of the County of Marin granting temporary tax relief to Marin County property owners, keeping in mind the very soon-to-arrive April 10th deadline. A no-fee, no-penalty deferment would (hopefully) have a cascading effect of passing along some of that relief to commercial tenants, many of which are completely shut down as "non-essential" businesses under the now-statewide order.
County officials have suggested that such a move would require state urgency legislation, so a group of City and Chamber officials sent letters urging North Bay legislators state Sen. Mike McGuire and Assemblyman Marc Levine to introduce emergency legislation. The MV Chamber sent a subsequent letter to county officials indicating that, with the State Legislature out of session, prospects for such emergency legislation seem dim.
"With one action, you can put critically important cash in the hands of residential as well as commercial property owners, who in turn can provide rent relief to their tenants through triple net leases and negotiations," Chamber officials wrote. "Deferring property taxes, without penalty, is the most direct and timely way you can make a difference and is consistent with State and Federal decisions to waive April 15th filing deadlines for all other taxes."
In a subsequent letter to constituents, Levine wrote that he'd personally reached out to County Administrator Matthew Hymel and members of the Marin County Board of Supervisors to give them legal options available to defer payment or waive penalties for taxpayers unable to make their property tax payment on time due to the COVID-19 pandemic. He noted that "a county tax collector is authorized to waive interest or penalties that would otherwise be imposed or collected with respect to a delinquent second installment of property taxes levied for the 2019-2020 fiscal year due to the COVID-19 pandemic."
He added that "the Board of Supervisors is authorized to approve an ordinance or resolution temporarily closing the tax collector's office, which would also delay property tax payments." Roy Given, the County of Marin's director of finance, could follow San Luis Obispo County Tax Collector James Hamilton's lead and require a property owner to make a written request for property tax deferment, allowing that COVID-19 hardship is a sufficient basis to grant a waiver. "Such a move provides distressed property owners with the comforting assurance if they follow the procedure, he’ll waive interest and penalties thus taking the guesswork out of what otherwise is a daunting process," according to Marin Independent Journal columnist Dick Spotswood. "Roy Given can do the same if he wants to."
The Coalition of Sensible Taxpayers agreed, demanding today "that Marin County Supervisors immediately declare a public health emergency that includes closing the county tax collection cashier window now through at least May 8 (with further extensions as appropriate). Doing so protects the health and safety of taxpayers who pay in person (to ensure timely payment and receive receipts) and also of public employees of the county tax office."
In a reply to the Chamber's letter, Given replied, "At the local County level, while we are responsible for the billing, collection and distribution of property taxes, we have no jurisdiction (and therefore no control) over the due dates and delinquency dates of property taxes ... However, I am working with the California Association of Treasurer Tax Collectors (Statewide Association of Tax Collectors) and am in communication with our local legislators to find the right solution Statewide.
Given pointed property tax deferment seekers to the county's Penalty Review Process to consider the extenuating circumstances behind the delinquency and address unforeseen events and situations that a taxpayer may experience, including the current COVID-19 public health crisis. He added: "The COVID-19 situation is very fluid at this time and as such circumstances and information may change at any time."
The State of California Has the Power to Make This Work
But there's a bigger picture view of this effort as well. Property tax deferment likely distresses both county and local government officials concerned about a reduction in timely and much-needed property tax revenue as a result.
From the Mill Valley Chamber's perspective, this is essentially a liquidity issue that the State of California is uniquely capable of addressing. As one recent commentator said, we “can’t let a liquidity issue become a solvency issue.”
In his letter to constituents, Levine emphasized that, should such relief arrive, only those who need it should take advantage of it. "Taxpayers that are able to make their property tax payment on time should do so. But for many families and businesses, this is a difficult and uncertain time."
Contact the Department of Finance here or at 415.473.6133.
Contact the Marin County Board of Supervisors here or at 415.473.7331.
Contact State Assemblyman Marc Levine here or at 415.479.4920.
Contact State Senator Mike McGuire here or at 415.479.6612.
Contact the Mill Valley Chamber here.
That's included a ban on evictions related to income loss due to Covid-19, all manner of loans and grants (esp. the new PPP program, stay tuned for more), timely webinars and unemployment benefit tutorials for those that have lost their jobs amidst the pandemic.
But one form of relief has been a tough nut to crack: property tax relief.
That's the concept of the County of Marin granting temporary tax relief to Marin County property owners, keeping in mind the very soon-to-arrive April 10th deadline. A no-fee, no-penalty deferment would (hopefully) have a cascading effect of passing along some of that relief to commercial tenants, many of which are completely shut down as "non-essential" businesses under the now-statewide order.
County officials have suggested that such a move would require state urgency legislation, so a group of City and Chamber officials sent letters urging North Bay legislators state Sen. Mike McGuire and Assemblyman Marc Levine to introduce emergency legislation. The MV Chamber sent a subsequent letter to county officials indicating that, with the State Legislature out of session, prospects for such emergency legislation seem dim.
"With one action, you can put critically important cash in the hands of residential as well as commercial property owners, who in turn can provide rent relief to their tenants through triple net leases and negotiations," Chamber officials wrote. "Deferring property taxes, without penalty, is the most direct and timely way you can make a difference and is consistent with State and Federal decisions to waive April 15th filing deadlines for all other taxes."
In a subsequent letter to constituents, Levine wrote that he'd personally reached out to County Administrator Matthew Hymel and members of the Marin County Board of Supervisors to give them legal options available to defer payment or waive penalties for taxpayers unable to make their property tax payment on time due to the COVID-19 pandemic. He noted that "a county tax collector is authorized to waive interest or penalties that would otherwise be imposed or collected with respect to a delinquent second installment of property taxes levied for the 2019-2020 fiscal year due to the COVID-19 pandemic."
He added that "the Board of Supervisors is authorized to approve an ordinance or resolution temporarily closing the tax collector's office, which would also delay property tax payments." Roy Given, the County of Marin's director of finance, could follow San Luis Obispo County Tax Collector James Hamilton's lead and require a property owner to make a written request for property tax deferment, allowing that COVID-19 hardship is a sufficient basis to grant a waiver. "Such a move provides distressed property owners with the comforting assurance if they follow the procedure, he’ll waive interest and penalties thus taking the guesswork out of what otherwise is a daunting process," according to Marin Independent Journal columnist Dick Spotswood. "Roy Given can do the same if he wants to."
The Coalition of Sensible Taxpayers agreed, demanding today "that Marin County Supervisors immediately declare a public health emergency that includes closing the county tax collection cashier window now through at least May 8 (with further extensions as appropriate). Doing so protects the health and safety of taxpayers who pay in person (to ensure timely payment and receive receipts) and also of public employees of the county tax office."
In a reply to the Chamber's letter, Given replied, "At the local County level, while we are responsible for the billing, collection and distribution of property taxes, we have no jurisdiction (and therefore no control) over the due dates and delinquency dates of property taxes ... However, I am working with the California Association of Treasurer Tax Collectors (Statewide Association of Tax Collectors) and am in communication with our local legislators to find the right solution Statewide.
Given pointed property tax deferment seekers to the county's Penalty Review Process to consider the extenuating circumstances behind the delinquency and address unforeseen events and situations that a taxpayer may experience, including the current COVID-19 public health crisis. He added: "The COVID-19 situation is very fluid at this time and as such circumstances and information may change at any time."
The State of California Has the Power to Make This Work
But there's a bigger picture view of this effort as well. Property tax deferment likely distresses both county and local government officials concerned about a reduction in timely and much-needed property tax revenue as a result.
From the Mill Valley Chamber's perspective, this is essentially a liquidity issue that the State of California is uniquely capable of addressing. As one recent commentator said, we “can’t let a liquidity issue become a solvency issue.”
In his letter to constituents, Levine emphasized that, should such relief arrive, only those who need it should take advantage of it. "Taxpayers that are able to make their property tax payment on time should do so. But for many families and businesses, this is a difficult and uncertain time."
Contact the Department of Finance here or at 415.473.6133.
Contact the Marin County Board of Supervisors here or at 415.473.7331.
Contact State Assemblyman Marc Levine here or at 415.479.4920.
Contact State Senator Mike McGuire here or at 415.479.6612.
Contact the Mill Valley Chamber here.