TAX NEWS - May 2009

California tax: Values Set for Utility Properties for 2009

Betty T. Yee, Chairwoman of the Board of Equalization (BOE), today announced the Board voted to establish unitary values of privately owned public utility companies in California at $76.9 billion. Local governments will collect an estimated $842.5 million in revenue (including penalties) over the next fiscal year based on these values.

Total values were up $1.2 billion over those adopted by the Board last year and will generate approximately $13 million more in taxes for local governments than in the current fiscal year.

Values were set for 396 companies with property in California. They include telephone (long distance, local, and wireless), gas and electric companies, railroads and inter-county pipelines.

While most properties are assessed by county officials, privately-held public utilities are assessed by the BOE statewide. These properties are not subject to Proposition 13 and are reappraised annually at their market value.

A "unitary value" includes improvements, personal property, and land. A unitary valuation applies to properties owned or used by utility companies and considered necessary to their operation.

The BOE determines the fair market value as of January 1st of each year by considering market conditions, use of the property, income generated by the property, replacement costs, and investments in the property, regulatory climate, depreciation, and other factors.

The values set by the BOE are used by county governments to levy local property taxes, which help support county governments, cities, special districts, and schools. Penalties are assessed for late or incomplete filings or failure to file with the BOE.

For more information, visit the BOE website: State-Assessed Properties Program
- Board-Adopted Unitary Values established on May 27, 2009
- Board-Adopted Unitary Values established last year on May 29, 2008