DATE: July 7, 2020
TO: Board of Supervisors
SUBMITTED BY: Oscar J. Garcia, CPA, Auditor-Controller/Treasurer-Tax Collector
SUBJECT: Alternative Method of Property Tax Allocation (Teeter Plan)
RECOMMENDED ACTION(S):
TITLE
Approve and authorize chairman to sign resolution approving and agreeing to include the City of Fowler in the County's alternative method of property tax allocation, also known as the Teeter Plan, with respect to secured property taxes, but excluding assessments, in accordance with the provisions of Revenue and Taxation Code 4701 through 4717 effective beginning with Fiscal Year 2020-21.
REPORT
Approval of the recommended action will include the City of Fowler in the County's alternative method of property tax allocation, also known as the Teeter Plan, with no anticipated increase in Net County Cost. The approval of the recommended action will provide additional revenue to the County in the form of interest and penalties earned on delinquent secured property taxes.
ALTERNATIVE ACTION(S):
The alternative action would be to deny the City of Fowler's request to be included in the Alternative Method of Property Tax Allocation. The City of Fowler would have property taxes apportioned through the current process as a Non-Teetered Taxing Agency.
FISCAL IMPACT:
The approval of the City of Fowler into the Teeter Plan will require a one-time distribution to the City not to exceed $50,000 for the redemption of the delinquent original secured tax roll currently due to the City. The Property Tax Loss Reserve Fund has funds available to pay for the redemption of delinquent original secured taxes.
In order to implement the inclusion of the City of Fowler in the County's Teeter Plan, it is necessary for the Board of Supervisors to adopt the recommended resolution and for the County to "buy out" the City's delinquent tax levies, in an amount calculated under Revenue and Taxation Code section 4713. The buyout is beneficial to the County as interest and p...
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