UNITED STATES – April 2020

Contents HOW COURTS MAY HANDLE REAL ESTATE FORCE MAJEURE SUITS ...... 3 PROPERTY TAX DUE? HOW TO COPE IF YOU’RE STRAPPED BECAUSE OF THE CORONAVIRUS PANDEMIC ...... 5 WHEN WILL YOUR CITY FEEL THE FISCAL IMPACT OF COVID-19? ...... 6 U.S. LOCAL GOVERNMENT LIQUIDITY TO FACE STRESS DUE TO CORONAVIRUS...... 12 U.S. LOCAL GOVERNMENT LIQUIDITY TO FACE STRESS DUE TO CORONAVIRUS...... 13 WILL AMERICANS GET PROPERTY TAX BREAKS BECAUSE OF THE COVID-19 CRISIS? ...... 14 AMERICA’S HOUSING MARKET IS SHOWING THE FIRST SIGNS OF TROUBLE FROM THE CORONAVIRUS PANDEMIC ...... 15 RESIDENTS PAY THE LOWEST PROPERTY TAXES IN THESE STATES ...... 16 10 STATES WITH THE CHEAPEST PROPERTY TAXES ...... 17 AFTER THE RUSH: TAX CONSIDERATIONS YOU MAY NOT HAVE CONSIDERED FOR COVID-19 STIMULUS PROGRAMS ...... 18 ARIZONA ...... 21

COUNTY TREASURER: STATE LAW REQUIRES PROPERTY TAX PAYMENTS TO BE MADE BY FRIDAY, MAY 1 ...... 21 CALIFORNIA ...... 21

CALIFORNIA NEEDS TO REASSESS STAY-AT-HOME ORDERS TO PREVENT AN ECONOMIC TRAGEDY ...... 21 COVID-19 RESPONSE ...... 23 CORONAVIRUS: SANTA CLARA COUNTY PROPOSAL CALLS FOR ELIMINATING PROPERTY TAX LATE FEES ...... 24 A CORONAVIRUS PROPERTY TAX DELAY? CALIFORNIANS SHOULDN’T COUNT ON IT ...... 24 HOW WILL CORONAVIRUS IMPACT THE PROPERTY TAX INCREASE INITIATIVE? ...... 25 PROPERTY TAXES: MOST COUNTIES STICKING TO APRIL 10 DUE DATE ...... 26 WHAT CAN YOU DO ABOUT YOUR CALIFORNIA PROPERTY TAX PAYMENT – COVID -19’S IMPACT ON CALIFORNIA PROPERTY TAX DEADLINES AND PLANNING CONSIDERATIONS ...... 28 DISASTER RELIEF ...... 30 SAN DIEGO COUNTY RESIDENTS WHO MISSED PROPERTY TAX DEADLINE DUE TO COVID-19 HAVE UNTIL JUNE 30 ...... 31 COLORADO ...... 32

DENVER IMPLEMENTS ADDITIONAL PROPERTY TAX RELIEF EFFORTS FOR RESIDENTS, BUSINESSES ...... 32 FLORIDA...... 32

COVID-19 IMPACT ON EXTENDED PROPERTY TAX PAYMENT DUE DATE IN FLORIDA ...... 32 FLORIDA SUPREME COURT TURNS DOWN ECSD'S ATTEMPT TO REVERSE BEACH PROPERTY TAX ...... 33 HAWAII ...... 34

PROPERTY TAX BASE MAINTAINING HAWAII COUNTY’S OPERATIONS DURING COVID-19 PANDEMIC ...... 34 INDIANNA ...... 34

COVID-19 RELIEF FOR INDIANA PROPERTY OWNERS ...... 34 ILLINOIS ...... 35

PROPERTY TAX PLAGUE WAIVER NEEDED FOR LAKE COUNTY HOMEOWNERS ...... 35 International Property Tax Institute IPTI Xtracts- The items included in IPTI Xtracts have been extracted from published information. IPTI accepts no responsibility for the accuracy of the information or any opinions expressed in the articles. P a g e | 2

KENTUCKY ...... 36

DUE TO COVID-19, OVER 100K JEFFERSON COUNTY PROPERTY REASSESSMENTS DELAYED TO 2021 ...... 36 LOUISIANA ...... 37

MAJOR ISSUES WITH NEW ORLEANS PROPERTY ASSESSMENTS: MANY SKIPPED AND MORE WRONG, AUDIT SAYS...... 37 ASSESSOR DISPUTES AUDITOR'S CRITICAL REPORT...... 38 MAINE ...... 39

GOVERNOR MILLS EXTENDS STATE’S PROPERTY TAX EXEMPTION DEADLINE ...... 39 MASSACHUSETTS ...... 40

CORONAVIRUS IMPACT: SPRINGFIELD DELAYS PROPERTY TAX DUE DATE ...... 40 MINNESOTA ...... 40

MINNESOTA PROPERTY TAX APPEALS AMID COVID-19: IMPORTANT DEADLINE CHANGE ...... 40 NEBRASKA ...... 41

ACTIVISTS SUSPEND NEBRASKA PROPERTY TAX BALLOT CAMPAIGN DUE TO COVID-19 ...... 41 NEW JERSEY ...... 41

WILL NJ DELAY PROPERTY TAX PAYMENTS DUE TO CORONAVIRUS? STATE FINANCES MAY GET IN THE WAY ...... 41 LOCAL GOVERNMENTS FACE FINANCIAL CRUNCH FROM CORONAVIRUS ...... 42 NEW YORK ...... 44

TOO LATE TO HALT L’POOL’S PROPERTY-TAX REASSESSMENTS ...... 44 PROPERTY TAXES IN NEW YORK ...... 45 NYC PROVIDES GUIDANCE FOR PROGRAMS AVAILABLE TO PROPERTY OWNERS FOR RELIEF FROM PROPERTY TAXES ...... 46 A MISSED OPPORTUNITY TO REFORM NEW YORK’S INEQUITABLE PROPERTY TAX SYSTEM ...... 48 OLEAN COUNCIL CONSIDERS EXTENDING PROPERTY TAX PAYMENT DEADLINE ...... 49 PROPERTY TAXES ARE PROBABLY STILL DUE DESPITE CORONAVIRUS ...... 49 PENNSYLVANIANS MAY GET MORE TIME TO PAY THEIR MUNICIPAL AND COUNTY PROPERTY TAX BILLS ...... 52 NEW MEXICO ...... 53

STATE DECIDES NO PROPERTY TAX EXTENSION ...... 53 NORTH CAROLINA...... 54

LATE ON YOUR 2019 PROPERTY TAXES? DURHAM AND WAKE COUNTIES ARE GIVING THOUSANDS A BREAK ...... 54 OKLAHOMA ...... 55

CORONAVIRUS IN OKLAHOMA: ASSESSOR 'MUST WAIT AND SEE' VIRUS EFFECTS ON PROPERTY VALUES ...... 55 PENNSYLVANIA ...... 56

PENNSYLVANIA’S OLDER ADULTS AND RESIDENTS WITH DISABILITIES ...... 56 TENNESEE ...... 56 PROPERTY TAX RELIEF: SHELBY CO. ASSESSOR SEEKS PERMISSION TO ACT AS HOUSING MARKET TUMBLES ...... 56

FEDS NOT COMING TO NASHVILLE'S RESCUE, 20% TAX HIKE POSSIBLE ...... 58 IMPACT ON PROPERTY TAXES UNCERTAIN DUE TO CORONAVIRUS FALLOUT ...... 59 TEXAS ...... 60

ONLINE PETITION LAUNCHED OVER FORT BEND COUNTY PROPERTY VALUATIONS ...... 60

International Property Tax Institute IPTI Xtracts- The items included in IPTI Xtracts have been extracted from published information. IPTI accepts no responsibility for the accuracy of the information or any opinions expressed in the articles.

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TEXAS AG: PROPERTY TAX ...... 60 CORONAVIRUS COULD THREATEN LOCAL PROPERTY TAX LIMITS ...... 61 WEBB OFFICIALS ANNOUNCE FREEZE IN PROPERTY VALUES ...... 63 WILL CORONAVIRUS LEAD TO HIGHER PROPERTY TAX BILLS? IT CAN, UNDER NEW TEXAS LAW ...... 63 MANY TRAVIS COUNTY HOMEOWNERS WILL SEE NO CHANGE IN 2020 HOME VALUES ...... 64 VERMONT ...... 65

LAWMAKERS CONSIDER GIVING TOWNS LEEWAY TO DELAY PROPERTY TAX PAYMENTS ...... 65 WASHINGTON ...... 66

A NEW AMAZON TAX IS COMING TO A COUNCIL COMMITTEE NEAR YOU ...... 66

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How Courts May Handle Real Estate Force Majeure Suits

The COVID-19 pandemic is expected to usher in a flood of litigation over force majeure clauses in real estate contracts, and while each case will first examine the circumstances and language of the contract, lawyers say states will also differ in their interpretations.

Force majeure, common in real estate contracts, excuses parties from certain obligations in the wake of so-called act of God or other uncontrollable events, although the clauses generally don't include the word pandemic, which opens the door to interpretation from state courts.

“This is an extraordinary time,” said Edward Prokop, a partner at Winston & Strawn LLP. “There is no pandemic precedent.”

As far as states go, lawyers say it may be easier for parties to win force majeure protection in states like Florida and California, while the bar in New York court could be higher.

“We’re expecting an avalanche [of force majeure cases] later,” said Richard Holzheimer, a first-chair trial partner at McGuireWoods LLP.

Here, Law360 looks at the ways courts in New York, Florida and California may differ in their interpretation of force majeure clauses.

New York May Require Proof of Impossibility

New York may be one of the toughest jurisdictions in which to win force majeure protection since the state’s courts may require showing that it was impossible for the party to perform the duties in question, according to lawyers.

“In New York, the fact that it was foreseeable will mean that even if it’s a force majeure event, the court may not give force majeure,” said José Ferrer, a trial lawyer and partner at Bilzin Sumberg Baena Price & Axelrod LLP. “Even if COVID-19 qualifies as an epidemic ... [New York courts may look at whether] it’s the virus itself that prevented the party from performing under the contract.”

What may happen is that the same disputes just across the river in New Jersey may play out differently in that state, since New Jersey courts often take a more broad interpretation of acts of God, said Marc Gurell, a partner at Seyfarth Shaw LLP.

“New York courts have historically interpreted force majeure clauses narrowly and have consistently held that a party will only be excused from performance if the event in question was specifically addressed within the contract and the event actually prevents the party’s performance,” Gurell said. International Property Tax Institute IPTI Xtracts- The items included in IPTI Xtracts have been extracted from published information. IPTI accepts no responsibility for the accuracy of the information or any opinions expressed in the articles.

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Florida, Delaware and California, on the other hand, may not be as strict as New York on the impossibility question, Ferrer said.

In those three states, "It’s OK that it's not absolutely impossible to perform the contract as a result of the force majeure event. The fact that it happened and it’s impracticable to perform, that’s enough to invoke the force majeure,” Ferrer said. “In states like New York, it has to be impossible.”

However, some businesses in New York have been shut down by government order, and in such instances, those orders would likely satisfy the impossibility test, experts say.

California May Be More Sympathetic to the Act of God Argument

Force majeure clauses often include the act of God phrasing, and while New York may require more than just proving that the pandemic is one, California courts may be more likely to sympathize with the act of God argument.

“California lawyers are going to be trying to make an argument that the coronavirus is not an act of God,” said Penny Pittman Cobey, counsel at BakerHostetler. “My view is that California law is not going to get stuck on that … narrow point. I think that’s a losing argument. It was completely unavoidable."

In the case of California, the state’s civil code may guide courts on the question. Cobey mentioned California Civil Code 3526, which states that “no man is responsible for that which no man can control,” as an example, and California’s Civil Code 1511 has similar language, Cobey said.

“States do differ. California takes a relatively liberal approach to the question of force majeure,“ Cobey said. “That is actually backed up by various provisions in the California Civil Code.”

Tad O'Connor, a first-chair trial partner at Kasowitz Benson Torres LLP, said he expects to see force majeure suits across the country in the next 30 to 60 days, and that the most populous state will certainly see its share.

“There is a view that the interpretation of California courts to the provision is slightly less strict, slightly more forgiving, than the courts in New York and Delaware,” O’Connor said, expressing a general pre-COVID view and noting that we're now in uncharted territory. “In order to succeed in your force majeure case, do you need to demonstrate impossibility, or is there something less than impossibility that may get you there?”

California courts “may interpret force majeure clauses not to require demonstrating an impossibility of performance,” O’Connor added.

Florida May Agree That This Was Unforeseeable

Florida courts are well acquainted with force majeure since it’s routinely dealt with in the context of hurricanes, but the state, like others, will have to address the question of whether and how the clauses apply to a pandemic.

Lawyers say it may be easier to win force majeure protection in Florida than in other states, since in the past the state has granted such protection even for foreseeable events like hurricanes. Since courts have been sympathetic during foreseeable events, they are likely to also be sympathetic during an unforeseeable event like the coronavirus pandemic, Ferrer said.

“A hurricane barreling through is foreseeable. We get them every year. In Florida, that wouldn’t necessarily pose a problem with the force majeure clause. The courts would [generally] enforce it,” Ferrer said.

Of course, the specific wording of the force majeure clause and circumstances will still be key, but Ferrer said there's "a big distinction" between the approaches in Florida versus New York courts.

And Ferrer said that to the extent suits are filed in federal court, federal courts in Florida and other states are likely to take similar approaches to those of state courts.

“I expect there to be a flood of new cases invoking all of these concepts. There’s going to be an unprecedented body of case law that we’re going to have to ... interpret,” Ferrer said. “Some people are going to be forum shopping. These cases are just as likely to end up in federal court.” International Property Tax Institute IPTI Xtracts- The items included in IPTI Xtracts have been extracted from published information. IPTI accepts no responsibility for the accuracy of the information or any opinions expressed in the articles.

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And until cases start to get filed en masse, real estate parties and lawyers remain in a “holding pattern,” O’Connor said.

“Force majeure is obviously being discussed between lawyers and clients on both sides of the issue. It’s going to be a wait and see, to see how courts deal with this crisis,” O’Connor said. “The jury is out on how these provisions are going to be interpreted.”

Property tax due? How to cope if you’re strapped because of the coronavirus pandemic

Millions of Americans suffering from job losses or reduced income are struggling with their April bills, ranging from rent to auto payments. And many of the nation’s 80 million homeowners will soon come up against another bill: Their property taxes.

These taxes are exclusively levied by local governments, such as cities and counties, as a way to finance schools and to pay for local services such as roads and police departments.

They represent the single most important source of local tax revenue in the country, says Jared Walczak, director of state tax policy at the Tax Foundation, a think tank focused on tax policies.

Because these taxes are overseen by thousands of municipalities and counties, they haven’t yet seen the same type of large- scale response to the coronavirus pandemic as those issued by the Internal Revenue Service and state governments.

Last month, the IRS said it would delay the April 15 tax filing deadline until July 15 to give pandemic-stressed taxpayers more time to get their filings and payments ready. As of April 1, only three states — Idaho, Mississippi and Virginia — have not yet pushed back their tax filing dates to July 15.

Local governments have been slower to react. Only a handful of states have directed municipalities to issue property tax delays, according to the Tax Foundation’s tracking of state responses to the COVID-19 pandemic. Among them is Washington, one of the centers of the coronavirus pandemic, which gave counties the ability to delay their property tax deadlines beyond their traditional April 30 due date. In response, several of Washington’s 39 counties have said they’ll push back their April deadlines.

But in other regions, some homeowners say they’re left in limbo.

Take Alana Aleman, 33, a professor at a community college who lives in Sugar Land, Texas. She says she didn’t have the money to pay her full property tax bill of about $1,000 because she was coping with unexpected grocery costs due to shortages and higher prices amid panic buying at local stores.

“When this started gaining steam in March, we knew we had a property tax payment that had to be postmarked March 31,” she says, referring to herself and her elderly parents, who live with her.

“We wondered if the county might postpone the payments because of the pandemic. We were looking at the websites, looking for Governor [Greg] Abbott to direct our counties to provide property tax relief. So far we have seen nothing.”

Aleman said she called her county to ask for relief, but didn’t receive any help. In the end, she said she sent a partial payment of $500.

“It’s either, ‘Do you pay your property taxes in full, or do you feed yourself?’,” she says.

Can you get a waivers, payment plan?

Some towns and counties will be willing to work with homeowners who are strapped and can’t make their property tax payment, says the Tax Foundation’s Walczak.

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The first step is to contact your local property tax office to discuss setting up a payment plan, he adds. Some may also have programs available to waive interest or fees from late payments.

Don’t wait to contact your local tax officials, he recommends, because it’s better to address the problem early on rather than accrue interest and other fees. Failing to pay your property taxes can also lead to harsher penalties, such as a tax lien or even foreclosure.

“There are programs in place in localities where a taxpayer can file for relief, and those will likely be more heavily utilized now,” he says. “There are some indication localities will be accommodating of those needs.”

Even so, not every property owner will get equal relief.

King County, Washington — one of the counties that has postponed its April 30 property tax deadline — says the extension until June 1 is only valid for property owners who pay their taxes themselves. Owners that pay through their financial institutions will still need to pay by April 30.

The response from local towns and counties is likely to be “piecemeal,” Walczak notes. For one, local governments are much more constrained than states and the federal government in their ability to delay tax revenue.

He notes, “Localities will struggle if revenue comes in more slowly, which is why some have been loath to extend the deadlines.”

When will your city feel the fiscal impact of COVID-19?

The economic impacts of COVID-19 are already shaping up to be significant, yet uneven, across the country. Not only are workers and businesses affected, but so too is the fiscal capacity of governments that rely on a healthy economy for their revenue. As the crisis unfolds, the impact on cities’ bottom line will be driven not only by overall economic conditions but specifically the parts of the economy where revenue is generated: retail sales, income and wages, and real estate.

To understand when cities can anticipate the brunt of COVID-19’s impact on their general fund revenues, we examined the extent to which a city relies on general tax sources that respond quickly to economic swings. An important factor is whether the city’s underlying regional economy is composed of industries that are more immediately exposed to coronavirus-related employment declines.

The results indicate an uneven geography of fiscal impact, with many heartland cities likely to be hit harder and more quickly than others.

A CITY’S TAX STRUCTURE WILL AFFECT ITS SHORT-TERM OUTLOOK

Cities in the U.S. generate the majority of their revenue by designing their own tax and fee structures within the limits imposed by their states (e.g., property tax limits, debt limits, constraints on access to some tax sources). As a consequence, cities’ tax structures vary across the country, with some relying heavily on property taxes and others primarily on sales taxes. Only a few cities—approximately one in 10—rely most on income or wage taxes.

Federal aid amounts to some 5% of total municipal revenue, while state aid is 20% to 25%. In other words, a city’s tax structure accounts for 70% to 75% of what it can spend to meet the health, safety, and welfare needs of its residents and visitors.

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After less than a month of shelter-at-home edicts, it’s clear that retail sales have plummeted and unemployment is skyrocketing. A city that generates the majority of its revenue from sales or income taxes will be hit hard and immediately when it experiences such consumer declines and job losses.

A city that relies on property taxes, however, will not experience such an immediate collapse in its revenues. Local assessment practices require that cities wait to estimate the value of land and property until the property is exchanged on the market or an assessment is conducted. Current property tax bills, therefore, typically reflect values of the property anywhere from 18 months to several years prior to collection. Property tax collection is less responsive, or “elastic,” in the short term—but over time, as rising unemployment dampens real-estate demand, even these property-tax-dependent cities will feel COVID-19’s impact.

In addition to taxes, approximately one-third of city-sourced revenues are derived from fees and charges for services such as trash collection and water. Although COVID-19 will adversely affect some fee-driven services (think transit and parking) because demand is reduced, it will affect other services (water, sewer, etc.) less severely, as residents remain in place and continue to use them.

LOCAL INDUSTRIES WILL PLAY A ROLE, TOO

To illustrate the impact of tax structures on city-revenue responses to COVID-19, we evaluated the share of regional employment in high-risk industries (mining/oil and gas, transportation, employment services, travel arrangements, and leisure and hospitality) and the share of general fund revenues from sales and income taxes across 139 cities. These cities are diverse in their geographies, economies, and revenue structures.

Cities with both a vulnerable economic composition (greater than 15% share of employment in high-risk industries) and a tax structure that is highly reliant on elastic sources of revenue (greater than 25% share of general fund revenues) will feel a dip in revenues more quickly than those with alternative economic and fiscal structures.

This analysis reveals that many of the most fiscally impacted cities in the shorter term are in America’s heartland. For example, 76% of Columbus, Ohio’s general fund comes from income taxes, and 16% of regional employment is in highly vulnerable industries. Cities in Ohio rely heavily on the flat income tax, which correlates immediately to changes in employment.

In places that rely heavily on sales taxes—such as Tulsa, Okla., Lincoln, Neb., and Denver—the closing of retail sales outlets will generate an immediate reduction in city revenue. Oklahoma City’s sales tax contributes 54% of its general fund revenues, for example, while 20% of its workers are in vulnerable industries.

A reliance on income taxes (as in Columbus) or sales taxes (as in Oklahoma City) will generate a strong shock to a city’s fiscal system as the COVID-19 pandemic continues. The fiscal impacts will likely appear within a month or two, and require those cities to adjust their budgetary expenditures in short order.

Those cities likely to feel mid- to longer-term impact are more reliant on property taxes and have a less-exposed local economy. Durham, N.C., for example, does not have a local sales or income tax, and less than 12% of regional employment is in high-risk industries.

It is possible, however, that foreclosures in property-tax-dependent cities (due to unemployment and the inability to pay taxes and mortgages) might happen more quickly than anticipated, driving property tax revenue down sooner than the typical 18 to 24 months.

The immediately impacted cities—those reliant on sales and incomes taxes with a high share of vulnerable industries—are likely to feel fiscal declines within the next month or two. Others are more likely to feel COVID-19’s economic effects in the next few quarters to a year. Although higher reliance on property tax revenue is generally more favorable in the short term, a less- diversified structure will limit the resilience of city budgets in long term.

STRONG INTERGOVERNMENTAL PARTNERSHIPS ARE VITAL

The fiscal capacity of local governments to manage public health and economic resilience in the face of COVID-19 is uncertain at best. The federal government has committed to providing much-needed assistance to cities to meet the immediate needs of International Property Tax Institute IPTI Xtracts- The items included in IPTI Xtracts have been extracted from published information. IPTI accepts no responsibility for the accuracy of the information or any opinions expressed in the articles.

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residents, households, and small businesses on the economic margins. This includes expanded funding for Community Development Block Grants, transit, education, broadband, and housing and homelessness. Notably, cities with a population over 500,000 will also receive direct financial assistance via a stabilization grant program, the Coronavirus Relief Fund.

Unfortunately, the potential impact on most local budgets is largely unknown, because states will have maximum discretion to allocate resources to cities as they see fit based on population size. Future federal bills should consider much lower population thresholds for direct local funding.

Under the current bill, states and cities should coordinate in unprecedented ways to ensure that measures of local fiscal capacity—including tax structures and the share of high-risk workers—are considered in funding distribution.

States should also allow their local governments to modify tax structures so they are in line with their underlying economic bases. Flexibility to collect a better mix of sales, income, and property taxes will offer cities the tools they need to respond in the short and long term as economic conditions and the needs of their residents change. This flexibility will be especially important in the months ahead, as state revenues and aid to cities begin to take a hit.

American cities will face very different situations as COVID-19’s economic impact becomes clear. The most effective solutions to this unprecedented situation will take into account the uneven magnitude and timing of the fiscal impact that cities will experience across the country.

TEXAS Protesting property values during COVID-19 emergency

Here’s our how-to guide for protesting your property values

About two-thirds of Travis County property owners will not see significant changes in their property values in 2020 because TCAD did not have enough data to update its residential appraisal model. Whether that means those property owners will see a property tax increase will depend on the tax rates that taxing entities set this fall.

“Overall, the Travis County appraisal role increased 5 percent to $287.2 billion, led by more than $6 billion in new construction and value increases in office, industrial, and multi-family properties,” TCAD announced in an April 10 press release.

“An analysis of the limited residential market data available showed that TCAD was unable to recalibrate its models this year, resulting in most residential properties retaining their 2019 market values.

“According to this year’s values, the 2020 median market value for residential property in Travis County is $354,622.”

It’s time to file your protest

On Monday, the Travis Central Appraisal District (TCAD) opened the 2020 season for protesting the property values that it assigned to real estate this year.

Protests may be filed through May 30 but Chief Appraiser Marya Crigler urges property owners not to wait till the last minute, as the new system in place to accommodate protests will be overwhelmed and unable to handle the volume.

TCAD is in the process of sending out Notices of Appraised Value (NOAV) reflecting updated market values to 144,882 property owners. Market value changes result from a variety of factors including new construction, changes to property characteristics, and changes in ownership. More than 84,000 of those residential property owners will only see increases in their market value due to homestead exemption protections, TCAD said in a press release April 10.

In addition, 258,203 property owners whose market values or assessed values did not change by more than $1,000 will get just a postcard.

Regardless of the method by which property owners are notified of their 2020 property valuations, all have the right to file protests and can do so immediately. Even owners whose values did not increase in 2020 have the right to file a protest.

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How to protest your property value

Due to the health emergency TCAD’s office is closed for in-person transactions. Protests may be filed by any of the following methods:

Online portal—Crigler said this is the fastest and easiest way to protest. You can set up a user account by entering your Owner ID and PIN, both of which are printed at the top of the NOAV. Owners who get a postcard and not an NOAV will need to call 512-834-9317 and ask for Customer Service to get an Owner ID and EFile PIN.

Once you have set up a user account, you should receive an email confirmation. Then you may log in to the portal, file a protest, and upload evidence to support it. The evidence TCAD used to determine your market value will be made available there as well.

One of the advantages of filing a protest online is that fields within the electronic equivalent of the paper Form 50-132 (Property Owner’s Notice of Protest) will automatically fill many of the boxes for which you would otherwise have to find information and enter it.

By mail—You can mail your protest Form 50-132 with evidence to: Travis Central Appraisal District, P.O. Box 149012, Austin TX 78714.

By drop box—You can stop by TCAD’s offices during normal business hours at 8314 Cross Park Drive, Austin TX 78754 and put your protest Form 50-132 and evidence in the box located at the front entrance.

For more information go to www.traviscad.org/protests.

Speak to an appraiser

The TCAD website also provides a means to Get in Line to speak to a staff appraiser about your protest in a telephone call. You can either wait in the queue or make an appointment for a specific date and time for a call back.

In addition, there is a chat box on the home page (a bright yellow rectangle) that floats at the bottom of your screen.

Crigler strongly recommended that property owners submit evidence being used to argue for a lower market value before arranging to speak to an appraiser. “If you sent evidence by other than online I recommend you wait five to 10 days so it’s in the system and the appraiser can see it before your conversation,” Crigler said.

“If a person protests through the online portal, TCAD’s evidence used for determining property value will appear in the portal when ready, usually about three days after the protest is filed,” said TCAD Communications Director Cynthia Martinez.

“If a person files a protest by other means, they can request our evidence,” she added. To facilitate that request, TCAD has published an updated Form 50-132, Property Owner’s Notice of Protest, on its website. Section 6 on that form now has an insertion that reads, “**Check this box to receive CAD evidence.”

“There will be one meeting per property owner,” Crigler said in the webinar. If you reserve a date and time for TCAD to call and don’t answer the phone, you will still be able to talk to an appraiser about your protest but you must go to the back of the line.

Once you’ve had an informal telephone conference with a staff appraiser and TCAD has reviewed all the evidence, a decision will be made about whether to lower your property valuation. If warranted, TCAD will send an offer within 10 business days. Then you have the opportunity to either accept the offer or decline it and pursue a formal protest through the Travis Appraisal Review Board (ARB).

For more information go to www.traviscad.org/informals

Evidence of lower market value

Crigler listed a number of types of information that may be useful in arguing for a lower market value, including surveys and floodplain data, although she said there is a lot of property in floodplains and such data may not affect the value.

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New construction would be valued based on the percentage of the structure that was completed on January 1, 2020.

If the property has had a recent fee appraisal performed, submit a completed and signed document to that effect.

Commercial properties would want to show an operating statement and a rental roll with a three-year history, she said.

Be sure to claim exemptions

Crigler said that property owners should be sure to file for any exemptions for which they qualify, including homestead, over age 65, disabled, and surviving spouse.

The over age 65 exemption freezes school-district taxes, which make up about half of a property owner’s total property taxes. “Apply as soon as you turn 65, and the exemption applies for the whole year,” she said.

Veterans who are 100 percent disabled are exempt from all property taxes and need a letter from the Veterans Administration to confirm the disability.

“Filing for exemptions is free,” Crigler said. “Don’t pay anyone to do that for you.” Exemption forms may be accessed through the website.

Things to avoid

Waiting until May 15 won’t be effective because if everyone does that there will not be time for TCAD staff to talk to all who want to informally protest.

When compiling a list of comparable properties in an effort to show that you have an unequal appraisal, Crigler said there may be reasons. “A house with a pool and an additional dwelling unit won’t be the same value per-square-foot as a house without these amenities.”

“Do not argue about property taxes, tax increases, or your ability to afford taxes,” Crigler said. When protesting you are only debating the market value. Complaints about taxes should be directed to taxing entities that set the tax rates.

ARB hearing process

The ARB is an independent body whose members are appointed by a Travis County administrative judge and trained by people whose qualifications have been approved by the state comptroller. The majority of ARB members will have performed these duties in a previous year.

In a formal protest hearing a three-member ARB panel will hear evidence presented by the staff appraiser and the property owner (or agent), then decide what market value to assign to the property. Property owners who are not satisfied with the ARB’s decision have the right to appeal through binding arbitration, filing a lawsuit in district court, or, for properties valued at more than $1 million, appealing to the State Office of Administrative Hearings.

ARB hearings on formal protests are to begin this summer, Crigler said. She did not specify a date.

TCAD’s new facility at 850 E. Anderson Lane is being renovated to accommodate formal hearings if in-person hearings are feasible, given the health emergency. This is the same location as was used for hearing 2019 formal protests before the renovation project started.

“We anticipate that ARB hearings will be held by telephone,” Crigler said. “More information is coming and will be posted to the TCAD website. It’s too early now for specifics but I anticipate there will be changes.” Coronavirus won’t trigger disaster exemptions for property taxes, Texas AG Ken Paxton says

After Hurricane Harvey, some Texas property owners got a break on their tax bills if their homes or commercial buildings suffered damage and were in counties that had been declared a disaster.

While Gov. Greg Abbott declared all of Texas a disaster on March 13 due to the coronavirus health crisis, property owners affected by the virus-related shutdown will not receive similar relief. International Property Tax Institute IPTI Xtracts- The items included in IPTI Xtracts have been extracted from published information. IPTI accepts no responsibility for the accuracy of the information or any opinions expressed in the articles.

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Texas Attorney General Ken Paxton issued an opinion Monday based on a request from state Sen. Paul Bettencourt, R-Houston, asking if a new disaster tax exemption applied to properties that suffered an economic loss as opposed to a physical one.

Paxton noted that the legislation applies to property “improvements,” such as a building or structure of some sort. Purely economic damage caused by the COVID-19 disaster, he said, is not eligible for the exemption.

“Had the Legislature intended to address economic losses or a general decrease in property value due to factors beyond the physical condition of the property, it could have used different language that encompassed those losses,” he said in his opinion.

The disaster tax exemption, which went into effect Jan. 1, established a temporary exemption to taxes for properties damaged by a disaster. Property owners would be entitled to an exemption based on different levels of damage.

Prior to this year, taxing jurisdictions were allowed to request disaster re-appraisals. The jurisdictions would have to pay for the county appraisal district to go back out to establish new values, which many did after Harvey.

The Harris County Appraisal District, which appraises properties, has already mailed approximately 1 million letters to residential and commercial property owners advising them of their Jan. 1 taxable valuations.

Once owners receive their letters, they have until May 15 to protest the valuations. The district then provides the taxing jurisdictions, which include cities and school districts, with the amount of property value within their boundaries. Those jurisdictions use that information to determine their tax rates.

In the fall, the county tax assessor mails out bills to property owners. Taxes are due by Jan. 31.

In Harris County, property taxes account for much of the funding that goes into public education and emergency services, such as police and fire departments.

--What you should know about property appraisals in a pandemic

If you are a property owner in Texas, chances are you just received your notice of appraised value from your county appraisal district. You probably dread this notice any year, but especially this year because of how the coronavirus pandemic may have affected your income.

You dread this notice in the best of times because your valuation is one of the bases for calculating your property tax bill, and because in most years the value goes up. You may have hoped that the appraisal district would take coronavirus into account when calculating your valuation.

Property appraisal notices throughout Texas carried a disclaimer that coronavirus-related impacts wouldn't be reflected this year.

HERE'S THE BAD NEWS

Sorry to burst your bubble. The majority of appraisal notices across Texas carried a flyer with this message: "This appraisal notice represents your property value as of January 1, 2020 per the property tax code. Any impact on values from the current health crisis will be reviewed for the 2021 property valuations."

Also, Gov. Greg Abbott's public health disaster declaration will not bring you any disaster relief on your valuation or your property tax bill. Attorney General Ken Paxton says the state law providing relief for natural disasters doesn't apply to the pandemic.

Coronavirus didn't flood your house or knock shingles off your roof. If anything, it has given property owners time and motivation to keep busy doing home improvement projects.

A GLIMMER OF HOPE

"However," the flyer goes on to say, "we will consider all evidence submitted that could support a lower value."

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Just remember that the evidence will have to support that you'd have received a distressed resale value in a theoretical sale in the year 2020 because the real estate market went down. That, most likely, will be a high bar to clear this year. You'll have an easier time of it in 2021, when you'll have the hindsight and evidence you'd need.

APPRAISAL REVIEWS IN A PANDEMIC

If you think your appraisal is unreasonable, you can dispute it with your county appraisal district, just like in years past. But this time don't expect it to happen face to face. You likely will have to do it by phone, email or video conference because of pandemic safety measures. You can start with appraisal district staff and if you can't reach agreement with them, your next step would be an Appraisal Review Board hearing. Those start next month and will continue until July 25, when the tax roll is certified.

WHERE TO FIND TAX RELIEF

The important thing to know about your property valuation is that it's just that — what your property supposedly is worth. Your appraisal district doesn't tax your property. It only says what it thinks your property is worth.

Your county commissioners court, city council, school district, community college district, rural fire protection district, drainage district — they're the ones who tax your property. If you need property tax relief because you've been out of work, they're the ones who need to hear about it. Their public hearings on proposed tax rates start in August.

The negative economic impact of coronavirus on their constituents probably is on their minds now. Setting tax rates was a big part of why they were elected. When they say they feel your pain, it's because it's also their pain. They and you are in it together.

Keep in mind that whatever your local elected officials provide in tax relief will result in fewer government services they can provide. School districts need to pay teachers. Municipalities need to provide safe water, maintain streets and parks, and haul your trash. Sheriffs need to maintain jails. The budget cuts made to help your situation could put a police officer or paramedic out of work — not necessarily the one who could have saved your life had his or her position not have been eliminated. But who knows?

U.S. Local Government Liquidity to Face Stress Due to Coronavirus

Challenges to U.S. local governments' ability to maintain historically sound liquidity levels in light of the coronavirus pandemic will come from multiple sources, according to Fitch Ratings. As with states, Fitch considers liquidity to be the most significant near-term risk to local government credit quality related to the pandemic (see 'Tax Filing Delays Will Hit Near-Term Liquidity for State Govts', March 2020). While Fitch expects most local governments -- with an average Issuer Default Rating (IDR) of 'AA' -- to retain sufficient liquidity to offset significant near-term revenue declines, some will undergo enough strain to trigger rating downgrades. Fitch expects even financially stressed issuers to take whatever measures are possible and necessary to continue to make full and timely debt service payments during this challenging period, which may include deficit financing or other cash flow conservation measures considered unusual through normal economic cycles. Failure to create adequate liquidity and financial buffers that protect debt repayment capacity even during a potentially protracted crisis would be inconsistent with an investment-grade rating. A missed debt service payment, even if on a temporary basis, would be treated by Fitch as a default.

Cash management tools are not typically the focus of Fitch's analysis of U.S. local governments, as liquidity is sufficient for operating needs for nearly all issuers through cyclical downturns. However, given the uncertain nature of the coronavirus pandemic and the depth and duration of its impact on the economy, Fitch believes many local governments may explore extraordinary cash flow support measures in the near term, particularly those governments that do not carry large liquidity balances relative to operating needs. These may include financial market solutions such as lines of credit and tax/revenue anticipation notes, either through public sales or private placements. Since local governments are generally labor-intensive, these working capital management measures might also include layoffs and furloughs that necessitate service reductions, or payroll deferrals. In addition, Fitch expects some entities to delay vendor payments, reduce equipment purchases and postpone capital spending.

Liquidity strains are more likely for local governments that exhibited negative financial trends prior to the outbreak, or those with lower IDRs and financial resilience assessments, reflecting more limited flexibility to address the emerging economic and International Property Tax Institute IPTI Xtracts- The items included in IPTI Xtracts have been extracted from published information. IPTI accepts no responsibility for the accuracy of the information or any opinions expressed in the articles.

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revenue challenges. Local governments with a disproportionately large exposure to economically-sensitive revenues such as sales and income taxes, or economies with significant tourism and retail sector dependence, are also considered more vulnerable.

Property taxes, which typically are due annually or semi-annually, have been a predictable and stabilizing factor for revenues but even those may be subject to uncertainty. Fitch is not aware of any local governments proposing to delay property tax due dates, although at last count 38 of the 44 states that levy a personal income tax have extended their filing or payment deadlines to as late as July 15, in line with the federal filing delay. For many taxpayers who have mortgages, escrowed property tax payments have historically contributed to high current property tax collection rates. However, a relaxation of mortgage payment due dates, already instituted for Fannie Mae and Freddie Mac borrowers, could result in delays in property tax collections. Fitch expects to develop an analytical framework for measuring this risk relative to an issuer's available cash management options. In addition, the coronavirus pandemic could negatively affect home prices, thereby eroding tax base values and property taxes, although the impact on tax revenues would not be felt until future fiscal years (see 'Coronavirus Could Precipitate Decline in U.S. Home Prices', March 2020).

Fitch also views state aid, upon which school districts and counties typically rely heavily, as at higher risk to cutbacks in fiscal 2021, which begins on July 1 for many. The ability to reduce or delay local government transfers is an important financial tool for states. Fitch believes this flexibility is likely to be invoked given states' near-term revenue and liquidity stress. While the Coronavirus Aid, Relief and Economic Security (CARES) Act will distribute $150 billion in aid to state and local governments in the near term, it provides expense reimbursement rather than a pure cash flow infusion. The high IDRs in the local government sector indicates most will be able to withstand even this period of unprecedented stress; Fitch is reviewing the adequacy of each issuer's available tools as well as management's willingness to utilize them.

U.S. Local Government Liquidity to Face Stress Due to Coronavirus

Liquidity strains are more likely for local governments that exhibited negative financial trends prior to the outbreak, or those with lower IDRs and financial resilience assessments, reflecting more limited flexibility to address the emerging economic and revenue challenges. Local governments with a disproportionately large exposure to economically-sensitive revenues such as sales and income taxes, or economies with significant tourism and retail sector dependence, are also considered more vulnerable.

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dates, although at last count 38 of the 44 states that levy a personal income tax have extended their filing or payment deadlines to as late as July 15, in line with the federal filing delay. For many taxpayers who have mortgages, escrowed property tax payments have historically contributed to high current property tax collection rates. However, a relaxation of mortgage payment due dates, already instituted for Fannie Mae and Freddie Mac borrowers, could result in delays in property tax collections. Fitch expects to develop an analytical framework for measuring this risk relative to an issuer's available cash management options. In addition, the coronavirus pandemic could negatively affect home prices, thereby eroding tax base values and property taxes, although the impact on tax revenues would not be felt until future fiscal years (see 'Coronavirus Could Precipitate Decline in U.S. Home Prices', March 2020).

Will Americans Get Property Tax Breaks Because of the Covid-19 Crisis?

Many municipalities around the U.S. have delayed their payment deadlines

More than 10 million U.S. workers have applied for unemployment since the outbreak began, according to the Department of Labor.As a result, some municipalities have delayed property tax payments because of the ongoing economic fallout caused by the coronavirus.

Several counties in Washington state have extended the deadline to pay property tax, including King County, where Seattle is located.

“Due to the financial hardships caused by the Covid-19 pandemic, King County...has extended the first-half 2020 property tax deadline to June 1,” according to a statement released by Dow Constantine, King County Executive. Taxes were originally due on April 30.

Florida has also extended its deadline for property tax payments. Levies are now due April 15 instead of March 31 in all counties, the state’s Department of Revenue announced last week. Some counties are waiving fees and other penalties for late payments.

Take San Luis Obispo County in California. Taxes are due April 10, but homeowners “can request a waiver from property tax late charges incurred due to Covid-19 hardships,” Jim Hamilton, the Auditor-Controller-Treasurer-Tax Collector for San Luis Obispo County, said in a statement.

Municipalities in California, like Fresno, are also considering waivers.

New York City is offering relief for struggling homeowners, as well.

The city’s new initiative, the Property Tax and Interest Deferral program, allows homeowners to defer or reduce property taxes because of “extenuating circumstances.” To qualify, tax payers must have a federal adjusted gross income of $58,399 or less, and own a condominium or a one- to three-unit tax class 1 residential property.

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America’s housing market is showing the first signs of trouble from the coronavirus pandemic Sellers appear to be holding off on listing their homes for sale in anticipation of less buyer traffic during the normally busy spring home-buying season

March started out as a strong month for the U.S. housing market — but by the second half of the month, the first indications that the coronavirus pandemic would weigh on home-selling activity began to emerge, according to a new report from Realtor.com.

In the weeks ending March 21 and March 28, the number of newly-listed properties fell by 13.1% and 34% respectively when compared with the same period a year ago, Realtor.com found. This is an indication that home sellers may be holding off on listing their properties right now.

The pace of home-price growth also slowed notably in the latter half of the month, according to the report. Home list prices were only up 3.3% year-over-year for the week ending March 21, and 2.5% for the following week. This represented the slowest pace of listing price growth since Realtor.com started tracking this data in 2013.

Read more:These mortgage borrowers will be ‘the first canary in the coal mine’ for a coronavirus-fueled foreclosure crisis, regulator says

(Realtor.com is operated by News Corp NWSA, -0.24% subsidiary Move Inc., and MarketWatch is a unit of Dow Jones, which is also a subsidiary of News Corp.)

“Our inventory and listing data can provide some early insight into how housing markets may be impacted by COVID-19, but the situation and reactions to it are still rapidly evolving,” Realtor.com chief economist Danielle Hale wrote in the report.

“The U.S. housing market had a good start to the year. Despite still-limited homes for sale, buyers were buying and builders were building,” she wrote. “The pandemic and virus-fighting measures appear to be disrupting that initial momentum as both buyers and sellers adopt a more cautious posture.”

Real-estate firms have taken steps to brace for the impact of the coronavirus pandemic. So-called iBuyers including Zillow ZG, +1.64% and Redfin RDFN, -1.18% that purchase homes from sellers and then sell them for a profit had wound down their home- buying operations in anticipation of an economic downturn. Real-estate brokers, incuding Redfin and Re/Max RMAX, -10.83% , had also shifted toward virtual home tours as open houses became verboten in the wake of social-distancing recommendations.

And other recent reports have shown additional signs of a slowdown in the housing market. LendingTree TREE, -8.33% released an analysis of Google GOOG, -2.04% search data analyzing the popularity of the search term “homes for sale” across the country’s 50 largest metro areas. Searches for “homes for sale” have fallen across all 50 cities in the study from their peak levels in 2020 thus far.

LendingTree estimated that these Google searches could drop some 63% compared with last year if the impact of the COVID-19 outbreak remains substantial for the next two months. A drop in web searches could presage a decline in home sales.

Also see:‘Landlords are just trying to pay bills like everyone else.’ The coronavirus could hit mom-and-pop landlords hard as tenants miss rent payments

Another sign that home sales will slump this spring: Mortgage applications. The volume of mortgage applications for loans used to purchase homes was down 24% compared with a year ago for the week ending March 27, according to data from the Mortgage Bankers Association. That’s in spite of mortgage rates being near historic lows. Comparatively, the volume of refinance applications was 168% higher than a year ago.

Before the coronavirus pandemic flared up, the U.S. housing market was on relatively solid footing. While the number of homes for sale remained low — constraining sales activity to an extent — demand among buyers was still quite high. Low mortgage

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rates had fueled an early start to the spring home-buying season, with homes selling four days faster in March when compared with 2019 levels, Realtor.com found.

The jump in jobless claims has stoked concerns of a repeat of the Great Recession and the foreclosure crisis that preceded it. But housing economists argue that this is unlikely to be the case.

Dispatches from a pandemic:‘Would you risk your life for a bagel?’ A New Yorker’s 5-point guide to surviving grocery stores during the coronavirus pandemic

“While housing led the recession in 2008-2009, this time it may be poised to bring us out of it,” Mark Fleming, chief economist for title insurance company First American Financial Corporation FAF, -3.04% , wrote in a report this week.

Unlike in the 2000s, the housing market in the U.S. is not overbuilt, Fleming argued, making it less likely that a large swath of vacant properties will crater the home values for homeowners. Rising home values and stricter lending standards have also meant that homeowners are sitting on historically high amounts of home equity.

“The housing market will not go unscathed, as consumer confidence and a strong labor market are essential in the decision to purchase a home,” Fleming wrote. “Yet, this time, housing is a casualty of a public health crisis turned economic, not the cause of an economic crisis.”

Residents Pay The Lowest Property Taxes In These States

If your property taxes for 2019 were not as high as you anticipated, you were not alone. The average property tax bill of $3,561 for a single-family home in 2019 was up only 2% from the average property tax of $3,498 in 2018, based on data from ATTOM Data Solutions.

The property tax analysis for more than 86 million single-family homes in the United States shows that property taxes levied on single family homes in 2019 totaled $306.4 billion, up 1% from $304.6 billion in 2018 and an average tax amount of $3,561 per home, an effective tax rate of 1.14%.

The effective property tax rate is the percentage of a property’s value – either its assessed value or in some cases its estimated market value – paid in property taxes during a given year.

The report analyzed property tax data collected from county tax assessor offices nationwide at the state, metro and county levels along with estimated market values of single-family homes calculated using an automated valuation model.

Todd Teta, chief product officer for ATTOM Data Solutions, said that although property taxes levied on homeowners rose again in 2019 across most of the country, the nationwide increase was the smallest in the last three years. He called it “a sign that cities, towns and counties are taking stronger steps to clamp down on how much they hit up property owners to support schools and local government services.”

Teta said, “Without major changes in the way local government and educational systems are funded, demands for good schools and other services will continue to put upward pressure on property taxes. But on balance, 2019 was a relatively mild year for taxpayers around the nation.”

Lowest property tax rates

States with the lowest effective property tax rates were Hawaii (0.36%), Alabama (0.48%), Colorado (0.52%), Utah (0.56%) and Nevada (0.58%).

Other states in the top 10 for lowest effective property tax rates were Tennessee (0.61%); West Virginia (0.61%), Delaware (0.62%), Arizona (0.63%) and Wyoming (0.65%).

Among the 220 metro areas analyzed for the report, those with the lowest effective property tax rates were Daphne, Alabama (0.33%); Honolulu (0.35%); Montgomery, Alabama (0.38%); Tuscaloosa, Alabama (0.39%); and Colorado Springs (0.41%).

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Highest property tax rates

States with the highest effective property tax rates were Illinois (2.22%), New Jersey (2.19%), Texas (2.11%), Vermont (2.11%), and Connecticut (2.04%). Rounding out the top 10 were New Hampshire (1.93%), New York (1.87%), Pennsylvania (1.75%), Ohio (1.68%) and Nebraska (1.57%).

Among 220 metropolitan areas analyzed in the report with a population of at least 200,000, those with the highest effective property tax rates were Binghamton, New York (3.11%); Syracuse, New York (3%); Rockford, Illinois (2.84%); Rochester, New York (2.80%); and Atlantic City, New Jersey (2.60%).

Out of the 220 metro areas analyzed in the report, 123 (56%) posted an increase in average property taxes above the national average of 2%, including Atlanta (9% increase); Phoenix (9%); Miami (5%); Washington, D.C. (4%); and Boston (4%).

Other major markets posting an increase in average property taxes that was above the national average were Detroit (up 9%); Austin, Texas (up 9%); Denver (up 8%); Las Vegas (up 7%); and Charlotte, North Carolina (up 5%).

Counties with property taxes over $10,000

Among 1,448 U.S. counties with at least 10,000 single-family homes, those with the highest average property taxes on single- family homes were mostly in the greater New York metro area, led by Westchester County, New York ($18,103); Rockland County, New York ($13,048); Marin County, California ($12,250); Essex County, New Jersey ($12,206); and Nassau County, New Jersey ($11,952).

10 States With the Cheapest Property Taxes

Looking to save a little cash? Here’s a suggestion you won’t hear every day: Move to Hawaii.

The state with a notoriously high cost of living unexpectedly offers you the best deal on property taxes, according to a recent analysis from WalletHub.

As part of the analysis, WalletHub ranked every U.S. state and the District of Columbia by their real-estate property tax rates, which the website based on the median real-estate tax payment and median home price for each state.

It's not the usual blah, blah, blah. Click here to sign up for our free newsletter.

The 10 states with the lowest real-estate property tax burdens are:

Hawaii: 0.27% effective real-estate tax rate Alabama: 0.42% Colorado: 0.53% Louisiana: 0.53% District of Columbia: 0.55% Delaware: 0.56% South Carolina: 0.57% West Virginia: 0.59% Wyoming: 0.61% Arkansas: 0.63%

The state with the highest rate is New Jersey (2.47%), followed by Illinois (2.3%) and New Hampshire (2.2%).

As WalletHub points out, property taxes actually impact us all, homeowners and renters alike:

“And though property taxes might appear to be a non-issue for the 36 percent of renter households, that couldn’t be further from the truth. We all pay property taxes, whether directly or indirectly, as they impact the rent we pay as well as the finances of state and local governments.”

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How to trim your property tax bill

Nobody likes paying property taxes, but being told to pony up for more than is justified is even worse.

Sometimes, a homeowner can have the sneaking suspicion that taxing authorities have appraised a property value beyond the home’s true worth. If you appeal this verdict, you could get your local board of assessment to change its mind and lower your tax costs.

Sound impossible? Not according to Money Talks News founder Stacy Johnson, who has successfully appealed his property taxes in two states. To learn how to halt — or lower — your tax rates, check out “Can I Freeze My Property Taxes?”

If property taxes are crushing you and you are of a certain age, you might be able to put off the day of reckoning. For more, check out “12 States Where Older Homeowners Can Defer Property Taxes.”

After the Rush: Tax Considerations You May Not Have Considered for COVID-19 Stimulus Programs

You have undoubtedly heard of the various state and federal government programs to blunt the financial impact of COVID-19 – from $1,200 individual stimulus payments to forgivable SBA loans to state and federal tax filing and payment deferrals. The news only goes so deep, though. There is still little guidance on what these programs mean to individuals and businesses long term, especially when it comes to tax mitigation and planning. And when this pandemic ends, the government will need to pay for both the stimulus programs and the cost of COVID-19 containment and treatment. Which means that the government will soon be looking for taxes.

It is extremely important for individuals and businesses, no matter how wealthy or large, to consider the tax implications of these stimulus programs to avoid being whipsawed by government taxing agencies months or years down the road. Below is a shortlist of tax considerations individuals and businesses should be thinking about with regards to the COVID-19 stimulus programs. TAX CONSIDERATIONS FOR INDIVIDUALS

Economic Impact Payment. Individuals with an adjusted gross income under $99,000 and married couples with an adjusted gross income under $198,000 will receive an economic impact payment from the federal government ranging from $5 to $1,200 (and an additional $500 for each child) within the next few weeks. To receive the payment, the taxpayer generally must have filed a 2018 or 2019 federal individual income tax return. If you have not yet filed your 2019 income tax return, and believe you had a lower adjusted gross income in 2018, you may want to wait to file your 2019 income tax return to maximize your economic impact payment as the IRS. Also, the payment you receive will not be taxable at the federal level, but that does not prevent states that impose an income tax from taxing the payment. You may want to monitor your state’s guidance regarding the payment over the next year.

Unemployment Benefits. Many people have already been laid-off and filed for unemployment benefits and it is likely many more will. When filing for unemployment benefits, you will have the option to have state and federal income taxes withheld from the payment. If you are financially able, you should have taxes withheld from your unemployment benefits because the payments are taxable and having taxes withheld will avoid the shock of a potentially significant tax bill next year.

Retirement Accounts. The federal government recently authorized the relaxation of rules related to retirement account distributions and loans, such as from your 401(k) or IRA. For instance, $100,000 worth of distributions taken by a qualified individual during 2020 are considered “coronavirus-related distributions” which are not subject to the 10% early withdrawal penalty or the mandatory 20% withholding. However, such a distribution is taxable over three years unless the distribution is repaid within 3 years. Additionally, retirement account loans have been increased to the greater of 100% of the account value or $100,000 but the loan must be taken before September 22, 2020, after which the maximum loan amount falls back to the greater of 50% of the account value of $50,000. The federal government has also suspended the requirement that certain individuals (generally those over 70 ½ or 72 years of age) take a required minimum distribution from their retirement account in 2020 thereby allowing such individuals to leave their investments alone during the current stock market downturn and hopefully allow them to recover to pre-COVID-19 levels. Managing any retirement account distributions, even in normal times, depends on your unique situation and must be done carefully to avoid serious tax implications.

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Property Taxes. Homeowners and other real property owners are well aware of property taxes but one common misconception is that the state tax agency collects property taxes, which isn’t true. Counties administer and collect real property taxes and therefore any payment deferral or stimulus measure with respect to property taxes would come from each county if the county has the authority to do so under state law which is unlikely. Property taxes should be paid-in-full and on-time since counties have the power to foreclose the property tax lien that arises upon non-payment of property taxes.

Mortgage Payment Deferrals. Anyone who has a federally backed mortgage that is experiencing financial hardship due to COVID-19 may ask their mortgage servicer to defer mortgage payments for up to 180 days. The tax implications of requesting such a deferral include a lower mortgage interest deduction when you file your 2020 individual income tax return (meaning you will pay more income tax). In addition, you need to consider if your insurance or property taxes are being paid through your mortgage escrow. If so and you aren’t making mortgage payments, the mortgage servicer isn’t collecting the property tax and insurance payment that it is eventually required to payout, you may experience shortfalls that need to be made up later.

Collection Enforcement. The IRS and many states have announced they will relax collection actions against individuals with outstanding tax debts. Generally, this means the IRS and states will not begin new collection actions such as filing liens and issuing bank levies. It also means that those with existing installment agreements and offers-in-compromise with the IRS have had their payments due under those agreements suspended until July 15. The IRS is continuing to take collection actions against high-income taxpayers, however, and expect both the IRS and state taxing agencies to resume collection actions against all taxpayers with outstanding tax debts after the immediate COVID-19 threat passes. It is also possible that if you currently owe back taxes your economic impact payment or any distribution or loan you take from a retirement account could be intercepted by the state or federal government to pay those back taxes. To avoid this potential, you should work with the tax agency to obtain a temporary collection hold, enter into a payment plan, or a different arrangement to prevent the tax agency from intercepting such funds.

TAX CONSIDERATIONS FOR BUSINESSES

Loans Forgiveness Equals Income – Usually. One major, but often overlooked, consideration when obtaining a loan from a private lender (whether a bank loan or using credit cards) to fund business operations is that if you default on the loan and the lender later forgives the debt, state and federal tax laws will impute that forgiven debt as taxable income to you unless an exception applies (e.g., insolvent immediately before the forgiveness) and this will flow through to the business owner’s personal income tax return (in most cases). Thus, funding business operations with private loans and credit cards must be considered carefully because serious tax implications can arise later on. If you need a loan, you may want to consider one of the government loans and stimulus programs discussed below as some of them avoid the forgiveness of the debt tax issue described here.

Federal Government Loan and Stimulus Programs. The federal government has announced numerous loan and stimulus programs available to most small businesses. These programs include:

Paycheck Protection Program: This is a loan designed so small businesses can keep their workers on the payroll and the government may forgive the loan if certain requirements are met, which you can read about here. Any amount forgiven is not subject to the forgiveness of debt provisions discussed in relation to private loans above. Employee Retention Credit: A refundable payroll tax credit equal to 50% of qualified wages paid by certain businesses within certain timeframes and up to a certain amount can now be claimed on a quarterly basis with certain limitations. However, businesses that take advantage of the Paycheck Protection Program cannot claim this credit. Delaying Payment of Payroll Taxes: Businesses can defer the employer portion of Social Security taxes and self-employed individuals can defer 50% of such cases through December 31, 2020. Half of the deferred tax must be paid by December 31, 2021, and the other half is due December 31, 2022. However, businesses that take advantage of the Paycheck Protection Program cannot defer payment of these taxes. Net Operating Losses: The IRS will now allow net operating losses (“NOL”) incurred in a tax year beginning in 2018, 2019, or 2020 to be carried back for five years and removes the 80% of taxable income NOL limitations imposed by the 2017 Tax Cuts and Jobs Act, which may benefit corporations, pass-through entities, and sole proprietorships. As an example, taking advantage of the relaxation of NOL rules may allow certain corporate taxpayers to obtain up to a 35% larger federal tax refund, but similar benefits may not occur at the state level.

State Government Loan and Stimulus Programs. Nearly every state has announced a business loan or other stimulus program, and below are just two examples.

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Minnesota Small Business Emergency Loan Program: Minnesota’s Department of Employment and Economic Development announced temporary loan assistance for certain qualifying Minnesota small businesses. Part of the loan may be forgiven, in which case the forgiveness of the debt tax issue discussed above is likely to apply because this would be a way for Minnesota to recoup a portion of the cost of the program by increasing the taxable income of the business and its owners later on. A business that takes advantage of this program also needs to be aware that the part of the loan that must be repaid could be referred to the Minnesota Department of Revenue for collection if not repaid. State Sales Tax Deferrals: Nearly every state imposes a sales tax on the sale of certain services and property. And nearly all of these states have deferred the due date to file sales tax returns and/or pay the tax to the state. Nothing can destroy a business faster than using the sales tax it collects from its customers to finance business operations, which the states consider a form of theft. Most states have laws to provide greater collection authority for sales tax (e.g., personally assessing the tax against the owners and officers of the business, revoking professional licenses, etc.) and in some cases, states assess personal liability for officers for theft. A business can manage this by holding the tax in trust until it is required to remit the tax to the state. Even if your state has granted a sales tax filing or payment deferral, you should remit the sales tax you collect from your customers to the state on time and not use it to fund operations or you risk not only losing your business but also destroying your personal finances.

Property Taxes. The property tax discussion related to individuals above would apply equally here for a business’s real property. However, many businesses are subject to property taxes on tangible business personal property which may be imposed at the state, county, or even city level. A review of various jurisdictions indicates that generally states, counties, and cities are not providing reporting or payment deferrals likely due to the simple fact that smaller units of government such as counties and cities cannot absorb the loss of revenue as well as a state or the federal government. Even so, every jurisdiction is different so be sure to check with your local jurisdiction regarding any property tax deferrals are available.

Collection Enforcement. As with individuals, the IRS and many states are relaxing collection enforcement activities against businesses as well. This means the considerations discussed above regarding individuals are also generally applicable to businesses. However, an additional consideration for businesses that owe taxes to multiple taxing authorities that take advantage of a stimulus program is the timeline for when the business receives the funds. For example, a business may owe a state tax debt and receives a federal stimulus program payment in August, but the state has already begun ratcheting up their collection efforts because the immediate COVID-19 threat has passed. As a result, the state issues a bank levy against the account of the funds that were recently deposited. Thus, being proactive with any outstanding tax debts and not falling behind now is important for every business during this uncertain time.

The above is just a small taste of the tax complexities and considerations individuals and businesses should be aware of as governments at nearly every level are taking steps to contain and treat COVID-19 while attempting to lessen the blow to the economy. While tax concerns may not be at the top of mind right now, taking a few preventative steps and even a minute to think through possible tax ramifications can ensure you and your business survive financially intact

A $500,000 grant was awarded to help Kittitas County's water mitigation program, according to a new release from the county.

The Kittitas County Treasurer's office implemented a property tax relief program to assist those who have been financially impacted by the Coronavirus crisis.

Kittitas County Treasurer, Amy Cziske announced on Thursday she is exercising her authority to provide property tax payment relief for Kittitas County taxpayers in need.

The Treasurer’s office emergency payment plan program will waive or reduce interest and penalties for taxpayers who are unable to pay their property taxes by the April 30th due date as a result of COVID-19.

Treasurer Cziske says that property taxes are still due by April 30th, 2020 except for those with a genuine need of assistance.

She says taxpayers who enter into a 2020 Relief Payment Plan will be allowed to pay their 2020 First-Half taxes over an agreed upon amount of time.

Cziske stated “There is a delicate balance in trying to assist our property owners affected by this pandemic and ensuring that our local government operations and service districts have funding to continue serving our community.” She encouraged property owners who are financially able to pay the first half or full year property taxes early to fund essential services needed now, and in the months to come.

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According to the Treasurer's Office, application forms must be received on or before the April 30th, 2020 tax due date.

ARIZONA

County treasurer: State law requires property tax payments to be made by Friday, May 1

COVID-19 andemic or no COVID-19 pandemic, Mohave County second-half property taxes are due on Friday, May 1.

According to a news release issued by the Mohave County Treasurer’s Office, the collection of property taxes enable the county to provide vital services such as law enforcement, fire and health services.

“These services are more important than ever during these unprecedented and difficult times,” the county wrote in the release.

Per Arizona Revised Statutes §42-18052, second half property taxes are currently due and become delinquent after 5 p.m. on May 1.

Penalties and interest may apply if taxes are not paid prior to that date.

Mohave County Treasurer Cindy Landa Cox said the county is prevented by law from extending the deadline.

“I realize that many taxpayers in Mohave County are struggling financially and experiencing economic uncertainty during these difficult times,” Landa Cox said in the release.

“Unfortunately,” she continued, “Arizona Revised Statutes does not grant the county treasurer any authority to postpone delinquency deadlines or remove penalties or interest.”

Cox implemented modified operations on March 23 in response to the COVID-19 pandemic, including social distancing measures to limit face-to-face contact with the public.

Due to COVID-19 concerns, the Treasurer’s Office will not be hosting satellite offices in Bullhead City and Lake Havasu City for 2019 second-half property tax payments this year.

The office will continue to serve the public through phone and by email. Payments can be made online or via the U.S. Postal Service.Also, drop boxes are located at the front of the county administration buildings in Kingman, Bullhead City and Lake Havasu City.

CALIFORNIA

California needs to reassess stay-at-home orders to prevent an economic tragedy Before the public health and economic disasters wreaked by the COVID-19 pandemic ruins more lives, California policymakers need to carefully assess the costs of a long-term lockdown and make common sense adjustments.

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About one-sixth of California workers have filed for unemployment insurance since Gov. Gavin Newsom issued a statewide shelter-at-home order to prevent the spread of the coronavirus.

While every coronavirus-related death is a tragedy, there is also an economic tragedy brewing in California that will impact lives and health. The 3.1 million unemployment applications filed by Californians since mid-March are the tip of an iceberg of economic misery that will likely afflict our state.

While being able to work from home has insulated some workers, including many government employees and technologists from the economic crisis, the impact is being borne by service workers who generally have lower incomes and less savings. Federal stimulus payments and unemployment supplements will likely do relatively little to help these individuals in high-cost California.

No policy change can bring all the lost jobs back. Contrary to President Donald Trump’s claims, it’s highly unlikely there will be an immediate economic bounce-back or “V-shaped recovery.”

Until a COVID-19 vaccine is found and fully deployed, many people will understandably remain hesitant to travel, shop, attend entertainment events or dine out. A lot of businesses that provide services in these categories will fail, and no amount of newly minted cash from the federal government would fully offset the effects.

Local governments are watching receipts from sales taxes, transient occupancy taxes and other revenue sources crater. Further economic distress could impact property tax revenues by increasing delinquencies and lowering valuations. The revenue declines should be expected to force local spending and service cuts, layoffs and possibly even municipal bankruptcies.

As Newsom works with other governors on a plan to re-open, they can protect public health and limit the economic damage by adjusting their policies and their messaging by taking a closer look at available data. Instead of a one-size-fits-all lockdown, varying policies should be applied to different groups.

The data show that COVID-19 is having far more severe health impacts on older people. Four California counties — Santa Clara, San Mateo, San Diego and Orange — have been publishing granular age profiles of coronavirus deaths. Of the 167 fatalities reported by these four counties through April 15, only 10 involved individuals under the age of 50. This data is consistent with national data from the Centers for Disease Control and Prevention, which show only 9% of coronavirus deaths are suffered by individuals under 55.

Officials should consider partially, or fully, exempting individuals below the age of 50 from the shelter at home policy. People under 50 who live with older relatives or with others who have underlying conditions that put them at a higher risk, such as respiratory illnesses and heart disease, could remain at home.

So-called “non-essential” businesses should be allowed to reopen with appropriate social distancing guidelines so they can employ and serve those who have been released from the lockdown. When widespread coronavirus testing becomes available, exemptions from the quarantine could be extended.

While attention has focused on a handful of severe coronavirus cases among the less vulnerable group, it would be more informative and encouraging to speak in terms of probabilities.

Based on available data, the risk of coronavirus-related hospitalization for people under 50 who don’t have any pre-existing high-risk conditions appears minuscule. That probability should be officially calculated and published so that, if confirmed, the people in the less vulnerable categories get full information and reassurance.

As the shutdowns continue, California is risking a level of unemployment, homelessness and despair not seen since the Great Depression. This will have its own extremely negative impacts on public health.

While government has a responsibility to protect public safety, California needs to reduce restrictions that have brought daily life to a halt. Scarce public resources should be focused on vulnerable populations, while others safely resume their lives and livelihoods.

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COVID-19 Response

The Office of the Treasurer & Tax Collector has taken several actions to alleviate the growing financial burdens on San Francisco taxpayers and to address the related economic downturn due to COVID-19. The City has also created a one-stop website for employers and employees outlining all existing resources, contacts and updates. Please visit our Help Center or call 3-1-1 with any further questions.

The Office of the Treasurer & Tax Collector has taken the following actions:

Deferral of Property Tax Deadline and Offer Property Tax Penalty Waivers

As the San Francisco shelter-in-place order has been extended and in accordance with state law, Treasurer Cisneros worked in conjunction with the Board of Supervisors and Mayor Breed to defer the property tax deadline to May 4, 2020 (the first business day after the shelter-in-place order is lifted) for both secured and unsecured payments. The Office of the Treasurer & Tax Collector encourages all property owners who can pay their taxes on time to pay online or via US mail to promote social distancing and ensure prompt payment. This tax revenue helps keep the government running and provides vital services that the public relies on, especially in times like these.

Taxpayers who are unable to pay their property taxes by May 4, 2020, because of the COVID-19 crisis, are encouraged to submit a request for a penalty waiver online. Please note that requests for penalty waivers will not be accepted until after the property tax deadline. If you have any further questions, please review our Frequently Asked Questions page.

Deferral of Business Taxes for Small Businesses

In order to provide immediate cash-flow assistance to small businesses, Treasurer Cisneros partnered with Mayor Breed and deferred the next round of quarterly businesses taxes for small businesses. Businesses are generally required to pre-pay their first quarter business taxes for current tax year by April 30th. This action will allow businesses to defer payment due to February 2021. No interest payments, fees, or fines will accrue as a result of the deferral. This benefit will be offered to businesses with up to $10 million in gross receipts, benefiting approximately 8,050 businesses with an average $5,400 tax payment deferral each.

Deferral of Business Registration Fee

The City will extend the 2020 Business Registration Fee deadline by four months to September 30, 2020. At the end of April, Business Registration Renewal instructions are mailed to businesses to renew their registration to maintain their ability to do business in San Francisco for the upcoming fiscal year. This year, the registration renewal fee is now due by September 30, 2020 instead of by May 31, 2020. This will lead to $49 million in deferrals for 89,000 businesses. The Office of the Treasurer & Tax Collector encourages all businesses who can register and pay their fee on time to do so. This revenue helps keep the government running and provides vital services that the public relies on.

Deferral of Business Licensing Fees

The City will provide further tax relief for small businesses by delaying the collection of the unified license bill, which includes but is not limited to, charges to restaurants and food businesses, bars, convenience stores, many small retailers, hotels, and tour operators, from City departments that include: Department of Public Health, Entertainment Commission, Fire Department, and Police Department. The due date for license fees otherwise due on March 31, 2020, is extended to September 30, 2020. The Office of the Treasurer & Tax Collector anticipates that the three-month delay will lead to $14 million in deferrals impacting approximately, 11,000 businesses.

Suspension of Certain Collections Activities

The Office of the Treasurer & Tax Collector has stopped the following activities for the duration of the COVID-19 crisis: post- judgment collections (for example, bank levy and wage garnishments), small courts claims filings, summary judgments, citation issuance, and property tax auctions. The Office of the Treasurer & Tax Collector, in conjunction with the San Francisco Department of Public Health and San Francisco Municipal Transportation Agency (MTA) has, on a temporary basis, suspended the collection of certain obligations owed to Zuckerberg San Francisco General Hospital and the SFMTA.

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Coronavirus: Santa Clara County proposal calls for eliminating property tax late fees

Homeowners in Santa Clara County who were unable to pay property taxes on time may soon receive some financial relief

Property tax payments in Santa Clara County were due April 10, but people who were unable to make their payments on time may soon be able to avoid late fees.

Santa Clara County Board of Supervisors President Cindy Chavez and Supervisor Joe Simitian proposed Monday that the 10 percent penalty on late property tax payments be waived. The two said they were also looking at ways to promote the county’s partial payment program, which has been in place since November 1, 2017.

“I’m told that a proposal of this type sort is unprecedented, but then so is the crisis at hand. If we’ve got a tool we can use to provide relief, we should use it,” Simitian said in a statement. “Now, more than ever, we’ve got to think creatively.”

The Board of Supervisors will consider the proposal at its April 21 meeting.

“Relief from penalties is particularly important for homeowners and small businesspeople whose livelihoods are uncertain – they need immediate relief,” Chavez said.

In a news release published by Santa Clara County, Simitian noted that property tax payments are needed for cities, schools and to keep the government operating, but acknowledged that asking for late fees penalizes people during a difficult time and “makes no sense to me.”

“We’re in a crisis, and people are hurting,” Simitian said.

Chavez and Simitian have also proposed the county explore other potential relief measures for taxpayers with second unpaid property tax installment payments on July 1, 2020.

Santa Clara County’s partial payment program for property taxes was initially proposed by Simitian in 2017. The program allows taxpayers to make multiple partial payments on each installment and applies the 10 percent late fee only to the unpaid portion that remains after the filing deadline.

A coronavirus property tax delay? Californians shouldn’t count on it

The global pandemic notwithstanding, most California owners are still on the hook to pay their property taxes next week — thus far, the state isn’t granting any reprieves.

Though both federal and state lawmakers postponed the deadline for income taxes through July 15, the statewide due date for homeowners and commercial real estate owners to cough up their property tax payments is still April 10.

And if you don’t like it, take it up with Gov. Gavin Newsom.

Although property taxes are collected by counties in California, property tax deadlines are set by state law. The only way to alter them is either by legislative act — impossible now that state lawmakers are sheltering-in-place along with most everyone else — or by executive order.

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Newsom’s apparent reluctance to grant a coronavirus property tax delay has raised the ire of low-tax advocates such as the Howard Jarvis Taxpayers Association.

“Tenants, small businesses have all gotten breaks and that’s all justified, we don’t argue with that at all,” said association president Jon Coupal. “We’re the primary representative of homeowners in the state of California and we’re the only ones left at the train station.”

The governor’s office did not respond to a request for comment. But Newsom’s likely already heard the counter argument from state and local government groups.

On March 21, the California Association of County Treasurers and Tax Collectors, along with city, county and school district government groups, wrote an open letter to Newsom asking him to leave the April 10 deadline in place.

The reason, they wrote, is that property taxes play a unique role in local budgets.

Unlike sales and income taxes, which may trickle in over the course of a year with each transaction and withholding, nearly all property tax payments land in county and municipal coffers in the week just before the biannual deadlines, December 10 and April 10.

“Extending the deadline,” the groups wrote, “would have a dramatic impact on local funding, as almost all local agencies rely on the property tax for the majority of their general funds.”

Keith Williams, president of the treasurers’ association and the treasurer/tax collector for Mariposa County, said that schools would be particularly hard hit by a delay, as they depend on property taxes for a third of their revenue. Citing an unpublished analysis by the nonpartisan Legislative Analyst’s Office, he noted that 10% of school districts statewide do not have enough spare cash to endure a two month delay.

Many local governments have also structured loans and bonds on the presumption of an April windfall. “A lot of debts are timed to be paid when these collections come in,” he said. “Counties aren’t sitting on a bunch of money to pay the debt, it’s just timed.”

Land owners who find themselves short on cash come April 10 as a consequence of the coronavirus crisis may have some wiggle room, but it depends on where they live.

While counties lack the legal authority to postpone the deadline, state law allows them to waive late fees and interest payments on delinquent payments for “reasonable cause and circumstances beyond the taxpayer’s control.”

Though he did not have an exact number or list, Williams said most counties will be allowing delinquent homeowners to file for a waiver.

In San Mateo and Los Angeles counties, for example, officials will accept late payments, so long as those property owners provide “justifiable documentation” or fill out a request.

How those coronavirus property tax delay requests are processed and what is considered justifiable is up to each county, said Williams.

“I can’t answer for them.”

How Will Coronavirus Impact the Property Tax Increase Initiative? The new effort to raise property taxes in California took a giant step forward with the filing of signatures on an initiative last week as the state is suffering the effects of the COVID-19 crisis. The measure calls for increasing property taxes on commercial properties (called a split roll) at a time when there is economic chaos and governments are forecasting budget cuts.

Does either side of the debate have an advantage conducting a campaign in the shadow of a pandemic? I asked someone who has been following this issue for a number of years with his widely respected polling, Mark Baldassare, President and CEO of the Public Policy Institute of California.

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“It’s hard to say how the yes and no arguments for the split roll will be heard because we have entered unchartered territory with the coronavirus pandemic and its economic impacts,” Baldassare admitted in an email.

“The burden of proof is always on the yes side in any initiative campaign and it will be especially challenging in the face a well- funded opposition,” Baldassare wrote. “The no side is capable of raising questions about the intended and unintended consequences.”

The Yes side will argue schools need money because there will be funding cuts under reduced budgets and local governments need revenue to offset the public response confronting the coronavirus.

The No side will talk to people who lost paychecks under Covid-19 and who will face increased costs of food and goods and services if the property tax increase passes. Because of the collapse of businesses big and small, many will struggle to get back on their feet–some won’t survive–under an increase in property taxes.

Acknowledging that matters will be different (hopefully in a positive way) seven months from now when voters decide on the measure if it makes the ballot, government and its voters will still be feeling the after-effects of this stressful experience and that is bound to play at the polls.

Property Taxes: Most Counties Sticking to April 10 Due Date

While two San Francisco Bay Area counties are giving property owners a few more weeks to pay their semi-annual tax bill, others say they can't afford to push back the deadline.

Two Bay Area counties announced Monday they will extend the property tax due date into next month, while other counties stood firm on the April 10 deadline.

San Francisco City and County joined San Mateo County in shifting its tax deadline to May 4, citing the continued closure of both counties' tax collector offices. Both counties say May 4 was chosen because it's the current date they anticipate shelter-in- place orders will be lifted.

San Francisco's Treasurer and Tax Collector still urged taxpayers to pay by Friday, if they can.

"We encourage all property owners who can pay their taxes on time to do so online or via US mail," the office wrote on its website. "This tax revenue helps keep the government running and providing vital services that the public relies on, especially in times like these."

Robin Elliott, Assistant Tax Collector for San Mateo County, echoed the City's change in policy in a letter to taxpayers.

"During this pandemic, we find ourselves in a heightened reliance on services such as healthcare, public safety, social services, and sanitation," Elliott wrote. "It is vital that we ensure the funding they require to continue to provide these services is collected on time."

So far, only two California counties have said they will push back the property tax deadline - San Francisco and San Mateo. We checked with every Bay Area county Monday, and most said it is crucial property taxes are collected on time, for budgetary reasons.

Alameda, Contra Costa, Napa, Marin, Santa Clara, Solano, and Sonoma Counties all say taxpayers who cannot make the Friday deadline due to financial hardship brought about by the pandemic can apply for penalty waivers or cancellation after April 10.

In a joint statement, the California State Association of Counties and California Association of County Treasurers and Tax Collectors said vital public services depend on the on-time payment and collection of property taxes.

"Any delay in payments beyond the April 10 property tax deadline, for individuals or businesses that can pay, will tip local governments into insolvency at a time when our residents need us the most," the statement said.

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With coronavirus on their minds, California voters probably aren’t in the mood to raise taxes

Even before the coronavirus infected the economy and flattened many voters’ wallets, Californians were in a sour mood. In the March 3 primary, 61% of all local bond and tax measures failed. Combine that fact with the current virus-induced economic coma, and it would seem to doom any November ballot proposition that seeks to raise taxes — or squeeze money out of anybody.

But wait a minute! There’s another way to look at the results of those local bond and tax measures. In truth, two-thirds of the proposals were supported by a majority of voters. Only one-third didn’t receive at least 50% of the vote.

Most of the measures that failed did so because they fell victim to California’s supermajority vote requirement for many local revenue measures: 55% for school bonds, 66.7% for most taxes.

These supermajority vote obstacles don’t apply to statewide tax and bond measures — or anything else on a state ballot. A simple majority is all that’s needed.

So, looking ahead to November, it’s possible that an ambitious, labor-backed proposal to alter sacrosanct, property-tax-cutting Proposition 13 by raising levies on business property isn’t as doomed as it might seem based on the local election results.

But I don’t think so. That property tax hike always had a tall hill to climb. And it’s even steeper now.

Remember: Another Proposition 13 — a state measure unrelated to property taxes — also failed on the primary ballot. It would have authorized a record $15 billion in school construction bonds: $9 billion for K-12 and $6 billion for higher education.

It received just 46.9% of the vote. That was a stunner. It was the first time since 1994 — a very Republican year — that a state school bond measure had failed.

One widespread theory was that many Californians mistakenly suspected that the school bond 13 was an effort to undermine the iconic tax-cutting 13, passed overwhelmingly by voters in 1978. Feeding that suspicion was the pending ballot initiative to raise business property taxes.

But Mark Baldassare, president and pollster of the Public Policy Institute of California, didn’t buy the confusion argument.

“A case [for the bonds] needed to be made to the voters, and it was never made,” Baldassare told me. That was the job of Gov. Gavin Newsom and his political strategists.

“I also wonder,” Baldassare continued, “whether something bigger is going on here about how people are feeling about school funding.”

They’re not feeling very happy about it, apparently. And that doesn’t bode well for the November property tax measure because 40% of its tax take is targeted for public schools and community colleges. The rest would go to local governments.

But there were 240 measures on the primary election ballot to raise money for public schools and local governments, and 146 failed; 94 passed.

Specifically, 82 bond issues failed and 42 passed. Virtually all were for schools. Sales taxes fared better: 23 passed and 22 failed. But 34 parcel taxes were rejected and just 19 passed. Of other taxes — including hotel occupancy, marijuana — 10 passed and eight failed.

By contrast, voters in the last presidential primary in 2016 felt more generous: 67 local bond and tax measures passed and only 20 failed.

Maybe too many school districts and local governments asked for too much this time.

Kudos to numbers cruncher Rob Pyers for digging through all the local election results and compiling the data. He’s research director for the California Target Book, which handicaps congressional and legislative races.

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The outcomes didn’t shock Target Book publisher Darry Sragow, a veteran Democratic consultant who has managed many local bond and tax campaigns.

“Voters totally distrust government officials to spend money wisely,” Sragow says. “Second, they believe there’s plenty of money already in the system, if it were just spent wisely.

“So you have to convince them to hold their noses, suspend their own gut sense and vote to tax themselves because the money is needed for an absolutely compelling cause.”

That’s what happened when a labor-business coalition helped Democratic leaders beat back a 2018 effort to repeal a hefty gas tax increase to finance road repairs.

But many voters have buyer’s remorse about the gas levy, and their grumpiness is rubbing off on other tax proposals, consultants tell me.

“We’re going to live with the gas tax forever,” Sragow says.

That’s another reason why you’d think sponsors of the business property tax hike might back off trying to sell their measure until the next election in 2022. But they’re not.

“We’re absolutely going ahead” in November, says strategist Larry Grisolano. The campaign has turned in 1.7 million voter signatures, far more than enough to qualify the measure for the ballot.

The initiative, sponsored by the California Teachers Assn. and the service employees’ union, would tax commercial property worth more than $3 million at market value. No longer would it enjoy Proposition 13’s sweet tax breaks. Residential property wouldn’t be affected.

But well-funded business opponents will argue that homeowners would be next on the taxers’ hit list.

They’ll also assert that, with many businesses struggling to survive because of the virus lockdown, it’s no time to add an extra tax burden.

Sponsors will flip the argument and maintain that schools and public health providers need money to recover from the economic meltdown and prepare for the next tragedy.

The odds are heavily with the “no” side. By November, voters are likely to be even more sour.

What Can You Do About Your California Property Tax Payment – COVID -19’s Impact on California Property Tax Deadlines and Planning Considerations

In the wake of the COVID-19 pandemic, certain California taxing officials have acted swiftly to provide state taxpayers with some much needed relief. On March 13, for example, the Franchise Tax Board (FTB) extended the corporate and personal income filing and payment tax deadlines to June 15, and then again on March 18, FTB further postponed the deadlines to July 15. The California Department of Tax and Fee Administration (CDTFA) and the California Office of Tax Appeals (OTA) also has acted to implement measures aimed at supporting taxpayers amid the COVID-19 outbreak. The Office of Tax Appeals granted an automatic 60-calendar-day extension of the deadline for appeals that have a briefing or other deadline that falls between March 1, 2020 and May 18, 2020. In addition, CDTFA published a statement on its website indicating that sales tax relief including return and payment extensions and penalty and interest waivers may be available to taxpayers upon request.

But what about property tax? Pursuant to California Revenue and Taxation Code (R&TC) section 2619, if the Tax Collectors office is closed on the date of the property tax deadline, the next business day that is open is when the deadline applies.[1] But yet, although many – if not all 58 – of California’s county treasurer and tax collector offices have closed to the public, county tax collectors have indicated that the April 10 deadline for making the second installment of the 2019-20 property tax payments, still stands.

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With the April 10 property tax deadline fast approaching, and absent new relief offered for property taxpayers, this article lays out the property tax relief measures that are available in lieu of an extended payment deadline.

Late Payment Penalty Waivers

Under existing law, county tax collectors do not have the authority to extend the property tax deadline. County tax collectors do, however, have the authority to waive late-payment penalties under one of two circumstances. First, as mentioned above, if the offices of any county tax collector are closed and, as a result, taxpayers are unable to make property tax payments to that county by April 10, pursuant to an order of the board of supervisors, the law permits taxpayers to make payments on the next business day that the county offices are open without incurring a penalty.

Although this relief section seems promising, most tax collectors–apparently to avoid being deemed “closed”–have quickly updated their websites to provide a comprehensive explanation of the “no contact payment methods” that their office accepts. Generally, payments can still be made online, over the phone, or via the mail. Given that payment method information for each county varies, however, we recommend checking the website for your specific county prior to the April 10 due date. The California Association of County Treasurers and Tax Collectors (CACTTC) has published a comprehensive list of the county websites. That list is available here.

Second, tax collectors also have the authority to waive late payment penalties pursuant to R&TC section 4985.2 upon a finding that failure to timely pay is due to “reasonable cause and circumstances beyond the taxpayer’s control, [] occur[ing] notwithstanding the exercise of ordinary care in the absence of willful neglect[.]” Taxpayers may begin to submit penalty cancellation requests starting on April 11 (the day after property tax payment becomes delinquent).

In response to the COVID-19 pandemic, a number of counties have released statements that they intend to provide penalty waivers to affected taxpayers. In addition, some county tax collector offices (e.g. Contra Costa and Los Angeles) have set up special teams to process requests for those who demonstrate that they were affected by the outbreak. Notably, though, penalty waivers provided pursuant to R&TC section 4985.2 are not automatic but are provided at the tax collector’s discretion. And what is not clear, from a majority of the counties’ statements, is what standards apply to taxpayers seeking to demonstrate that they were “affected by the outbreak.” In other words, most counties have yet to provide guidance explaining how they will exercise their discretion with regard to the penalty waiver.

For example, on March 31, Alameda County issued the following statement providing some additional information about the types of taxpayers who may be granted penalty cancellation relief:

The Alameda County Treasurer-Tax Collector (TTC) plans to work with taxpayers on an individual basis to address hardships caused by the coronavirus and the shelter-in-place order. Beginning after the property tax delinquent date, which remains as April 10, the TTC office will make available a penalty cancellation request form specifically related to COVID-19. The taxpayers will need to submit the appeal form and to sign a statement, under penalties of perjury, to represent that they were unable to pay on time for reasons related to the impacts of the coronavirus from “reasonable cause and circumstances beyond the taxpayer’s control” under current state law. Valid reasons to seek penalty cancellation, which may change if state law changes, may include illness, recent effects from under- or unemployment, and business losses (including loss of rental income). Eligible taxpayers will include homeowners, small businesses and small landlords. Documentation will be required, specific to COVID- 19.

What is not clear from the Alameda County Treasurer-Tax Collector’s statement is how an affected property taxpayer proves an illness, under-employment, or business losses, and must the taxpayer prove that COVID-19 caused these things? Similarly, pursuant to a statement issued by the San Diego County Treasurer-Tax Collector’s office, penalty cancellation requests related to COVID-19 require documentation of how the taxpayer was impacted by the virus and how that interfered with their ability to deliver the payment by April 10 (e.g. hospitalization). However, even though evidence of hospitalization may be required to prove that a taxpayer qualifies for penalty relief, San Diego County is advising persons who are sick to “stay home for seven days to avoid getting others infected whether you have COVID-19 or not.” The website further provides that at the moment, COVID-19 testing is being considered for only a select group of people.

This lack of a clear standard will likely prove troubling for many taxpayers who are seeking a penalty wavier in the months to come. Simply indicating that the county is willing to provide penalty waivers isn’t enough. Counties also need to provide taxpayers with information about the standards for qualifying for the waiver in the first place. Moreover, for affected property taxpayers, even obtaining a penalty waiver request form is no simple task. The Los Angeles County Treasurer and Tax Collector, for example, has provided a downloadable form on its website. To access the form, International Property Tax Institute IPTI Xtracts- The items included in IPTI Xtracts have been extracted from published information. IPTI accepts no responsibility for the accuracy of the information or any opinions expressed in the articles.

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however, taxpayers must first read a page of “instructions” which provide that “[t]he California Revenue and Taxation Code (R&TC) grants the Treasurer and Tax Collector the authority to cancel penalties in limited circumstances.” The instructions also provide examples of requests that the Tax Collector will deny. For instance, Step #1 provides that “[t]he Tax Collector will deny a request to cancel a penalty based on the financial circumstances of a taxpayer, which prevented the taxpayer from paying the amount due prior to the delinquency date. Under the R&TC, there is no provision to cancel penalties due to financial circumstances that prevented a timely payment.”

As Step #2, the taxpayer must select the R&TC section that applies to his/her request. Once a code section is selected, the taxpayer has only 500 characters including spaces and returns to describe the nature of his/her request.

Disaster Relief

Taxpayers who find themselves hard pressed to receive a penalty waiver may have other, albeit different, options for pursuing some form of property tax relief. Pursuant to R&TC section 170, a county’s board of supervisors, by ordinance “may provide that every assessee of any taxable property, or any person liable for the taxes thereon, whose property was damaged or destroyed without his or her fault, may apply for reassessment of that property” if certain conditions are met. To be eligible for reassessment under section 170, damage to the property must have been caused by “[a] major misfortune or calamity, in an area or region subsequently proclaimed by the Governor to be in a state of disaster, if that property was damaged or destroyed by the major misfortune or calamity that caused the Governor to proclaim the area or region to be in a state of disaster.” Section 170(a)(1) defines “damage” to include “a diminution in the value of property as a result of restricted access to the property where that restricted access was caused by the major misfortune or calamity.”

Considering that disaster relief is only available in counties that have adopted R&TC section 170, this option may not be available for all taxpayers. At least 15 counties have adopted this section including: Alameda, Contra Costa, Fresno, Kern, Los Angeles, Napa, Orange, Riverside, Sacramento, San Bernardino, San Diego, San Luis Obispo, Santa Clara, Solano and Sonoma. Additional counties may have adopted section 170. However, counties haven’t made it easy for inquiring property owners to determine whether or not this type of relief is available. In fact, most do not mention section 170 or “disaster relief” on their website. Rather, inquiring property taxpayers must review the applicable county’s municipal code.

The Governor’s Authority

Although the county tax collectors and the state comptroller do not have the power to change the property tax filing deadline, the governor does. California government code section 8571 grants the Governor the authority to suspend a statute during a State of Emergency if he determines that strict compliance with the statute would “in any way prevent, hinder, or delay the mitigation of the effects of the emergency.”

In an open letter to Governor Newsom penned on March 21, the California Association of County Treasurers and Tax Collectors, along with city, county and school district government groups urged the Governor to retain of the April 10 deadline. In their letter, they argued that “[e]xtending the deadline by 60 or 90 days would have a dramatic impact on local funding, as almost all local agencies rely on the property tax for the majority of their general funds.” Which, they said, would consequently impact local agencies ability to respond to the pandemic.

In a separate letter penned to Governor Newson on April 3, members of the California Taxpayer Association urged the governor to extend the property tax deadline to July 15 for all property taxpayers except those using impound accounts. They wrote:

We are not unaware that property taxes are primarily a local revenue source, and we are sensitive to the needs of local government at this extraordinary time . . When considering the balance between the needs of the taxpayers and the needs of local government, we ask you to consider the following:

Taxes on all business personal property already have been fully paid; The first installment (50%) of property taxes on the secured roll was paid in December. Some taxpayers paid their entire property tax at that time for income tax reasons; About 57% of homeowners use impound accounts, and local government would receive that money as well.

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The group further argued that this partial suspension is an effective means of providing property taxpayers some relief while also ensuring that counties receive a vast majority of the property tax revenue they otherwise would have gotten on April 15. As such, they asserted that “a 90-day delay in receiving the remaining tax is a reasonable share of the burden for local government to bear when balanced against the daily fight to survive that taxpayers are facing.”

What’s Next?

In response to the COVID-19 pandemic, California’s political leaders have acted at both the state and local level to provide assistance to many of those who are suffering from the resulting economic impact. So why should property owners be any different? Although advocating for penalty relief waivers is a step in the right direction, the issuance of unambiguous guidance is a necessary next step.

San Diego County residents who missed property tax deadline due to COVID-19 have until June 30

As the economic impact of coronavirus and prevention measures continue to grow broadly across San Diego, the County Treasurer-Tax Collector’s office has changed its stance on the property tax deadline. The county tax collector is now accepting penalty cancellation requests for those who have been directly impacted by the coronavirus pandemic.

“We know COVID-19 has had widespread consequences for people in San Diego, California and across the nation, and we want to be as compassionate and lenient as possible,” said San Diego County Treasurer-Tax Collector Dan McAllister. “We will cancel late penalties for those directly affected by the virus.”

"If you were affected by the virus and unable to pay the second installment of your property taxes, you can use the TTC's special penalty cancellation request form," said McAllister.

Requests will be reviewed and approved on a case-by-case basis, said McAllister.

Requests must be submitted by June 30 of this year.

The form requires applicants to explain how they were impacted by the coronavirus pandemic and unable to pay property taxes by April 10, the delinquent date. Forms must also be submitted along with a check for the amount owed.

The Treasurer-Tax Collector (TTC) will "not accept request forms when there is no payment attached."

Applicants can mail in the form and check or drop off the items in the TTC’s drop boxes found at all branch locations.

"Thank you to those who have already paid their second installments," said McAllister. "Property taxes fund many essential services, including coronavirus response and the salaries of first responders. You have helped our county, schools and cities continue to meet their financial obligations."

McAllister's office made the announcement Saturday morning, a day after property taxes were due despite countywide measures calling for the public to stay home resulting in business closures and increased unemployment. McAllister's office told 10News on March 24 that the deadline was not going to change stating, “The second installment of property taxes is due no later than April 10. State action would be required to change the date.”

The California Association of County Treasurers and Tax Collectors posted a statement on its website stating that tax collectors have the authority to handle specific scenarios where a taxpayer cannot physically pay their taxes on April 10 due to quarantine, illness or closure of the tax collector’s office as a result of COVID-19.

Last month, San Diego City Council President Pro Tem Barbara Bry wrote a letter to the governor asking him to consider an Executive Order directing all county treasurer-tax collectors to defer April 10, 2020, property tax payments until July 15, 2020.

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COLORADO

Denver Implements Additional Property Tax Relief Efforts for Residents, Businesses

Waiver of late interest, installment payment options extended

Mayor Michael B. Hancock is taking additional measures to provide property tax relief to business and residential property owners. Governor Jared Polis’ Executive Order #D 2020 031 authorizes county treasurers to extend the waiver of interest on late payment of property taxes through April 30, 2020. The action also allows property owners who had previously chosen to pay property taxes all at once to pay in installments.

Effective immediately, Denver will:

Waive 100% of late payment interest through April 30, 2020 (original order was through April 20). Property owners who have not yet paid the first installment of property taxes may now pay their first installment on or before April 30 with interest waived. The second installment is due June 15, 2020. Property owners who intended to pay in full on April 30 may still do so or may now choose to pay in two installments. The first half is due April 30 and the remainder is due June 15, 2020.

Depending on the option selected, real property owners who do not pay either the first installment or their full property tax by April 30 will begin to accrue late interest at a 1% rate. Late payment interest for the second installment will not accrue until June 16, 2020.

Prior to the extension of the Governor’s Executive Order, Colorado property owners had two options for paying property taxes, with the following prescribed deadlines:

Pay in full by April 30, 2020 Pay in two installments, the first half by February 29, 2020 and the second half by June 15, 2020

“An unprecedented number of people and businesses have been impacted by the COVID-19 pandemic and we want to do all we can to relieve some of the intense financial pressure people are feeling,” Mayor Hancock said. “We are taking full advantage of this opportunity to provide a little more relief for people during this time, and we’re committed to working with our state partners to continue to support our community during this public health emergency.”

On March 16, 2020, the Mayor suspended the enforcement of evictions for both residents and businesses. There are a variety of programs available to residents and businesses to assist with financial hardships. A full list is available on denvergov.org by clicking on COVID-19 Information and selecting the Relief Support and Resources button. Resources include the Denver Property Tax Relief Program and the Temporary Rental and Utility Assistance program (TRUA). DHS is also helping residents access childcare assistance, food assistance, or Medicaid by personally delivering paperwork to the homes of residents who need to sign up for benefits but cannot access online applications.

FLORIDA

COVID-19 IMPACT ON EXTENDED PROPERTY TAX PAYMENT DUE DATE IN FLORIDA

State mandated closures and other governmental regulations issued to mitigate the spread of COVID-19 are drastically impacting the business world. Day Pitney continues to evaluate the rapidly changing legal landscape in order to provide the most up-to-date information together with practical business counsel to our clients, advisors, and partners.

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Property tax is normally due by March 31 in the year following the tax assessment. All tax collectors shall consider property taxes timely paid if received by electronic payment or postmarked by April 15, 2020. This is pursuant to Order of Emergency Waiver/Deviation #20-52-DOR-01 and applies to all 67 Florida counties.

Florida Supreme Court turns down ECSD's attempt to reverse beach property tax ruling

The Florida Supreme Court has declined to take up the Escambia County School District's appeal of a ruling over property taxes on Pensacola Beach last week.

The court denied a petition to allow the school district to appeal a 2018 decision that ruled leased property on Santa Rosa Island was not subject to ad valorem tax.

A lower court ruled last year that the school district did not have standing to intervene in the lawsuit, which was between Pensacola Beach condo owners and the Escambia County property appraiser, despite the school district having to refund $6 million of funds to beach leaseholders.

Escambia County School District Superintendent Malcolm Thomas said he was disappointed in the court's decision to not take up the case.

"I always thought that the district had standing, but with what they said last week, that issue will not be resolved in this case," Thomas said. "I mean, it is what it is. They have the authority to decide not to take the case, and that's what they've done."

Ed Fleming, an attorney with the McDonald-Fleming law firm who represented several groups of Pensacola Beach condo owners in multiple cases, said in a news release that the court's decision puts an end to an attempt from the county to declare the tax laws surrounding the beach unconstitutional.

"It seals the victory of taxpayers at Pensacola Beach that has resulted in savings of more than $100 million over the life of their leases," Fleming said.

Santa Rosa Island was deeded to Escambia County in 1947 from the federal government with the provision that land be used to benefit the public.

The county created a 99-year lease system under the Santa Rosa Island Authority to encourage development on the island while still following the federal law that gave the island to the county.

After the island was mostly developed, the county started taxing leased land, kicking off a running legal battle over the last 20 years.

The tax issue on the island resulted in two failed attempts in Congress to amend the 1947 law and allow full private "fee simple" ownership of land on the island. The attempts to change the law resulted in a local protest movement known as "Save Pensacola Beach" that pressured Escambia County to place the question of private ownership on the island land in a non- binding referendum in 2018.

Escambia County voters overwhelming backed the current system with more than 80% in favor.

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HAWAII

Property tax base maintaining Hawaii County’s operations during COVID-19 pandemic

Hawaii County’s reliance on property taxes for operational funds has protected it from the drastic tax losses experienced at the state level during the coronavirus pandemic, officials said.

Property taxes account for the bulk of Mayor Harry Kim’s proposed $625.9 million operating budget that was released on Feb. 29, The Hawaii Tribune-Herald reported Sunday.

Kim is scheduled to release an adjusted proposed budget on May 5.

County property taxes are projected to raise $343.5 million next year. Property owners face a 3.9% increase in property taxes based on an increase in property values.

County Finance Director Deanna Sako and Hawaii County Council Chairman Aaron Chung said it is too early to determine the extent of the budget impact from general excise tax and fuel tax cuts because of the coronavirus.

There could also be ramifications from possible cutbacks in transient accommodation taxes the state government shares with counties, they said.

“We’re all trying to look into our magic crystal ball,” Sako said. “We’re trying to do our best to estimate it, and there are still a lot of unknowns.”

Chung called for a hiring freeze and advocated against creating any employment positions until the county has a better grasp on the economic outlook.

Employee pay and benefits account for more than 65% of the county budget.

About 10% of the county’s 2,888 positions are currently vacant and have been unfunded in the budget, according to county finance department documents.

“We should be proceeding with an eye toward austerity,” Chung said. “But we have to look at everything on a case-by-case basis. I would like to see us exercise some restraint in hiring. If the only way to exercise restraint is by cutting unfunded positions, so be it.”

For most people, the coronavirus causes mild or moderate symptoms, such as fever and cough that clear up in two to three weeks. For some, especially older adults and people with existing health problems, it can cause more severe illness, including pneumonia, and death.

INDIANNA

COVID-19 Relief for Indiana Property Owners

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With property tax deadlines looming, Indiana property owners are looking for relief in the midst of the COVID-19 crisis. From payment extensions to potential assessment adjustments, there are options that could alleviate immediate financial obligations.

Real property taxes payable in 2020

In Executive Order 20-05, Indiana Gov. Eric Holcomb officially extended the 2020 spring installment tax bill. The spring installment tax bill remains due May 11, 2020; however, counties will waive penalties on payments made after May 11, 2020, for a period of 60 days. Interest is not applicable. This waiver does not apply to tax payments which have been escrowed by financial institutions on behalf of property taxpayers.

Assessment revaluation options due financial hardship created by COVID -19

In Indiana, many real properties’ assessed values are primarily based upon the income approach to value. If there was a significant loss of income during 2020 related to your real estate, you may be eligible to petition for revaluation of your assessment to adjust specifically for the loss of income that occurred during the COVID-19 pandemic. If successful, it would impact the real estate taxes due in 2021 based on the 2020 values. To determine if a petition is warranted, you should compare the estimated value of the property (calculated using the 2020 financials) to the 2020 assessment itself. If the 2020 assessment is the higher value, you should consider petitioning for reevaluation.

Personal property tax filings

The deadline to file Indiana personal property tax returns for the 2020-pay-2021 cycle remains May 15. However, a request for a 30-day extension to file the personal property tax return may be granted by the county assessor if submitted in writing on or before May 15. The Indiana Department of Local Government Finance is encouraging assessors to grant this extension and give the taxpayer until June 14, 2020, to make a timely personal property tax filing. The decision to grant the extension will be made on a county-by-county basis. Currently, a handful of counties – including Marion, LaPorte, and Allen – are giving all taxpayers until June 14, 2020, to file their 2020 personal property tax return without having to request this extension in writing.

We continue to monitor property tax developments as they relate to COVID-19 relief initiatives and will provide updates as information becomes available. If you have questions about how these relief options apply to your specific situation, please contact our property tax specialists.

ILLINOIS

Property tax plague waiver needed for Lake County homeowners

Government giveth, and government taketh away.

The giving was from economic impact payments from the federal government which were deposited in bank accounts across Lake County last week. The taking will be as county property owners get their real estate tax bills next month.

The federal and state governments ordered the delay of filing personal income taxes, but so far county officials have decided property owners will be getting their real estate tax bills on time. The first installment of property tax bills, which they should get next month, will be due in early June.

No one believes the $1,200 ($2,400 for couples) federal relief checks will go far in paying for groceries, utility bills, rent, mortgages or car payments. County property owners who don’t know when their next paychecks are coming due to circumstances caused by no fault of their own should be getting a tax break in these perilous financial times

But they won’t be getting one from some business-as-usual members of the Lake County Board. During a live-streamed session of the board’s Financial and Administrative Committee on Thursday on Comcast’s Channel 18, the panel decided against delaying tax collections or waiving late payment fees for a period of time during the COVID-19 crisis.

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This despite thousands of county residents in the private sector unemployed or furloughed; hundreds of small businesses shuttered and the county’s hospitality industry decimated by stay-at-home orders issued by Illinois Gov. J.B. Pritzker.

So far during the pandemic, few public employees have had their salaries cut or become jobless. Waukegan is one of the few governmental entities to furlough non-essential staff. The city is operating with minimum essential staffing under a mayoral emergency order, with the hope total staffing can return by May 1.

The full County Board will take up the committee’s recommendations at a currently scheduled May 12 remote meeting, once again telecast on Comcast Channel 18. Maybe by then, board members will have a change of heart when it comes to waiving late payment fees for taxpayers or come up with some plan for property tax relief.

That waiver has been proposed by a few Democrat state legislators -- Rita Mayfield of Waukegan, Daniel Didech of Buffalo Grove, Bob Morgan of Deerfield and Joyce Mason of Gurnee -- representing Lake County districts. They have urged the County Board to implement provisions of the state tax code which consider conditions during economic turmoil like we’re experiencing.

If folks are struggling to pay for food, you can imagine where paying property tax bills ranks. The lawmakers point out the state code gives the County Board wide-ranging powers to provide tax relief when a county has been deemed a disaster area.

President Trump declared the entire state a disaster area on March 26 because of the COVID-19 outbreak. The disaster declaration gives the County Board the power under state law to exempt penalties for property taxes paid late, they note.

In a statement, Mayfield called the committee’s vote, “the wrong approach.”

“These extraordinary times call for extraordinary measures,” she said, adding, “The Lake County Board should do the right thing” and waive late tax fees.

County officials, though, have little wiggle room when it comes to lowering property tax bills. The county’s portion of the tax bill is about 10 percent, spread between the county and forest preserve district. The largest amount goes toward local school funding and some communities, such as Gurnee and Vernon Hills, currently don’t levy a property tax.

The county committee did, though, vote to freeze the current salaries of Coroner Dr. Howard Cooper of Gurnee, Recorder of Deeds Mary Ellen Vanderventer of Waukegan and Circuit Court Clerk Erin Cartwright Weinstein of Gurnee for the next four years; seven County Board members up for election in November; and end the liquor commissioner pay of County Board Chair Sandy Hart of Lake Bluff.

The overall economic impact of the pandemic crisis has been staggering. Perhaps members of the county’s Financial and Administrative Committee haven’t been watching the daily epidemic updates of the governor and president.

KENTUCKY

Due to COVID-19, over 100K Jefferson County property reassessments delayed to 2021

Over 100,000 Jefferson County properties in areas such as the Highlands, St. Matthews, Jeffersontown and Fairdale will not be reassessed this year due to the ongoing coronavirus pandemic, officials said Wednesday.

Jefferson County Property Valuation Administrator Colleen Younger said the roughly 100,000 residential and commercial properties in some of the "hottest" markets that encompass much of central and southeast Louisville will now be reassessed in 2021.

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As of mid-March, the PVA was still hoping to go forward with its quadrennial reassessment of more than 90,000 properties in three market areas and another 10,000 properties that have been sold or altered within the last year.

But COVID-19 had already forced the PVA to cancel community meetings meant to explain the reassessment and appeal processes. Property owners would also not be allowed to appeal their assessments in person due to the public health crisis.

Letters with new property assessments were initially scheduled to be sent to homeowners on April 24.

However, the coronavirus has continued to spread nationally and globally since March, and Younger said Wednesday that her office did not want to increase the economic burden that many are now facing as businesses close and unemployment numbers skyrocket.

Is your home's value going up? PVA assessments have some residents on edge

Reassessment notices will now be mailed June 26, Younger said.

2020 PVA conferences for those wishing to appeal assessments will be offered online through jeffersonpva.ky.gov or by teleconference from June 26 through July 20.

Property owners can make teleconference appointments by calling the PVA office at 502-574-622. A property does not have to be reassessed in 2020 for its owner to file an appeal.

“These are extraordinary times,” Younger said. “They are unprecedented.”

The Kentucky Department of Revenue approved Jefferson County's delay, Younger said, and the virus is postponing tax collections throughout the state.

Kentucky Department of Revenue Commissioner Thomas Miller wrote in an April 3 letter to county property valuation administrators that a state-issued executive order will delay property tax calendar due dates by 60 days due to the COVID-19 pandemic.

Local governments must set their tax rates now by mid-November, instead of mid-summer, according to Miller, with 2020 tax bill collections now starting in November and December.

The reassessment delay does not mean the Jefferson County PVA is without work to do over the coming months.

Instead of the 100,000 or so properties, Younger's office said this year it will reassess this year new construction, 2019 sales and improvement permits.

LOUISIANA

Major issues with New Orleans property assessments: many skipped and more wrong, audit says

Orleans Parish Assessor Erroll Williams inaccurately appraised more than a third of the city's commercial and residential properties and ignored another fifth, according to a recent report issued by State Legislative Auditor Daryl Purpura.

The report, issued March 27, says that because Williams failed to appraise every parcel, some residents did not pay their fair share in taxes. Others paid more in taxes than they should have, the report said, because so many of the appraisals were inaccurate.

Among other steps, the auditor is recommending that Williams appraise all of the city's properties within a single year and that he stop basing appraisals on sales prices.

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Williams disputed many of the report's findings.

"Lost in all of this analysis is the fact that fair market value is not an exact science, but an estimate of value as of a specific date," he wrote.

Almost a quarter of New Orleans properties missed by citywide reassessment, at least for now

Williams came under fire in recent months as overall property values in New Orleans shot up by 18% and residents grappled with higher tax bills.

At the request of state legislators, Purpera agreed to review the assessor's methods.

New Orleans' reassessment, spiking tax bills will force out many residents, advocacy group says

Based on the report, Purpera's office found that Williams did not assess 18% of the 152,254 city properties for tax year 2020, and more than 7,000 of the untouched properties had not been considered in more than four years. Williams should be valuing all property at the start of a four-year cycle, the report said, and not merely a quarter of properties per year as he has long done.

For another 38% of properties, Williams only considered the land, but not the buildings, also problematic under state rules. That should stop, as should Williams' practice of valuing properties based on their most recent sales price, which can inflate value, the report said. Orleans Parish assessor's budget, methods questioned by nonpartisan research group

The Greater New Orleans Housing Alliance, a housing advocacy group, said Purpera's findings are worrisome and "validate our concerns."

But Williams asserts that state law allows him divvy up his appraisals as he sees fit, as long as he gets to them all within four years.

Williams admitted last year that he missed some properties Uptown. People who weren't assessed last year will be assessed this year.

New Orleans City Council wants nonprofits to pay more in taxes, but obstacles are many

The assessor also said the Louisiana Tax Commission does not require him to consider both land and buildings. And his use of home sales prices falls in line with International Association of Assessing Officers standards, he said.

Williams pointed out that less than 4% of property owners last year appealed their assessments to the Orleans Parish Board of Review.

"Our practice, while open to public scrutiny, is done with the intent of following best practice guidelines, tax commission rules and state laws," Williams said.

Assessor disputes auditor's critical report There is a saying in politics: Power is not given, it is taken. And the recent Legislative Auditor’s report on the operations of the Orleans Parish Assessor’s office is just that: A fundamentally flawed missive which upholds Louisiana Tax Commission (LTC) rules declared by our court system to be unconstitutional and beyond their authority.

Rest assured that every property in Orleans Parish will be reassessed within a four-year period, as required by the state Constitution I am bound to uphold as a state official. However, I am not required to revalue all properties simultaneously in one four-year interval.

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My practice, instituted after 2011 when I became the sole assessor in Orleans, staggers property revaluations by neighborhood over a four-year period, thus eliminating the long lines that used to occur during the quadrennial Open Rolls period. This practice has been upheld by the 19th Judicial District Court.

My office increased the annual open rolls period for property owners from 15 to 30 days, opened multiple remote offices, and provided an online appeals form: all steps that have worked to the taxpayer’s advantage, until the LTC mandated in 2017 that we stop doing revaluations in digestible chunks in favor of the “all properties at once” method.

Nevertheless, before this policy was ruled on by the court and found unconstitutional, I informed the LTC that a section of the city would not be completed for 2020 but would be completed for 2021 based upon their Jan. 1, 2019 valuation date before the open rolls period we completed last summer.

It is precisely because of the LTC’s ill-mandated requirement that my office again saw a much-maligned open rolls period last year, which prompted state Rep. Stephanie Hilferty to ask for the audit. She now carries a constitutional amendment this session, HB 504, at the request of the LTC, to require the unconstitutional ‘all-properties-revalued-at-once-every-four-years’ mandate.

The Orleans Parish Assessor’s Office and the Louisiana Assessors Association will vigorously oppose this legislation, just as I will strongly oppose and speak out against a power grab at the state level from elected assessors. The LTC is not an elected body.

Despite the high number of approximately 134,000 revaluations which resulted from this ill-advised and unconstitutional action by the LTC, only 4% formal appeals were heard by the Orleans Parish Board of Review last fall. This is because we correct any assessment errors when a property owner brings valid evidence that our valuations are in error.

My work, subject to public scrutiny, is done with the intent of following best practice guidelines, tax commission rules and regulations, and state laws. I will not let that record be questioned without a vigorous fight, as I submitted in response to the auditor’s report.

Erroll G. Williams, Assessor, Orleans Parish New Orleans

MAINE

Governor Mills Extends State’s Property Tax Exemption Deadline

The State of Maine offers several types of Property Tax Exemptions for Mainers who meet the eligibility requirements, so we encourage you to take advantage of savings and complete an application now.

The exemptions are as follows: Homestead Exemption; Veteran Exemptions; Blind Exemption; Solar and Wind Energy Equipment; Property of Institutions and Organizations; and Exemption of Business Equipment (BETE).

Due to COVID 19, Governor Janet Mills has issued an Executive Order (PDF) extending the State’s property tax exemption deadline. The order, which took effect March 31st extends the statutory April 1st deadline to either the commitment date of the municipality (the Town of Kennebunkport’s commitment date is traditionally the end of July), or 30 days after the termination of the Governor’s Proclamation of Civil Emergency, whichever comes first.

The extended application deadline includes all of the above exemptions.

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MASSACHUSETTS

Coronavirus impact: Springfield delays property tax due date

The city has extended the due date for fourth-quarter property tax bills by one month to June 1 due to the coronavirus, Mayor Domenic Sarno announced Friday.

Sarno said the move follows Gov. Charlie Baker signing municipal relief legislation that allows extensions. Any changes in the date require state approval, he said.

The original due date for the quarterly bills was May 1.

“During these challenging and extraordinary times, my administration is committed to trying to provide any relief and assistance possible to our taxpayers while following local and state legal statutes to maintain our city services and operations,” Sarno said in a statement.

He thanked Baker and local legislators “for working together to provide this much needed relief to our tax paying residents and businesses.”

Timothy J. Plante, the city’s chief administrative and financial officer, said the city must collect taxes to maintain city services.

“In light of these extraordinary circumstances and at the direction of Mayor Sarno, the city will provide some relief for our residents by delaying the collection of these taxes,” Plante said.

MINNESOTA

Minnesota Property Tax Appeals Amid COVID-19: Important Deadline Change

The Minnesota Legislature has extended the deadline to file property tax appeals in connection with 2020 property taxes from April 30, 2020 to May 30, 2020 in response to the current COVID-19 pandemic and related “stay-at-home” directives by the CDC, local departments of health and state executive orders. Unfortunately, the statutorily required tax petition filing process continues to be antiquated and cumbersome, requiring personal service of paper copies of the petition on four separate county officials before e-filing the petition with the district court in the county in which the property is located. The process will be significantly hampered this year by the COVID-19 emergency and the closure of most, if not all, county offices to public access at this time.

Fortunately, the property tax department at Fredrikson & Byron is operating at full capacity and is monitoring and tracking the status of each county and its policies with regard to filing 2020 tax appeals. We have developed a process to accomplish service in light of these challenging and unusual conditions, but we do anticipate that the process may take longer than typical to complete. If you have any properties you would like us to review for a possible 2020 appeal, please contact us as soon as possible. That will provide assurance that we have sufficient time to carefully review the case, make our recommendations and complete the appeal filing process in a timely manner.

Nearly all published sources predict the COVID-19 emergency to cause immediate and significant downward pressure on the market value of nearly all commercial, industrial and apartment properties—regardless of property type. With that in mind, carefully consider whether your property should be considered for a pay 2020 appeal. Since the fair market value is likely to decrease significantly in the future, your case for future appeals will be made even stronger. The sooner an appeal is filed, the more likely it will be placed at the front of the line for tax court scheduling orders, deadlines and settlement discussions. An appeal filed in the near term will likely accelerate its resolution.

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Please also note that the first one-half 2020 property tax payments continue to be due in Minnesota no later than May 15, 2020—even amid the current COVID-19 pandemic. Despite being closed to the public, most counties continue to accept property tax payments by U.S. Mail or through electronic means. Please check each county website for specific information and instructions.

NEBRASKA

Activists suspend Nebraska property tax ballot campaign due to COVID-19

Activists who pushed for a statewide ballot measure to lower property taxes in Nebraska have suspended their campaign due to the coronavirus, organizers said Monday.

The group TRUE Nebraskans posted the announcement on its website. Organizers said the state’s social-distancing restrictions have made it too difficult to collect enough signatures by the July 2 submission deadline.

The group pulled its circulators off the streets on March 19. If they had gathered enough signatures, their proposal would have appeared on the November general election ballot.

The proposal would have given a state-funded rebate to Nebraska taxpayers equal to 35% of the taxable value of their property. Some prominent conservatives backed the proposal, but critics, including Gov. Pete Ricketts, argued that it would lead to major cuts to services or tax increases elsewhere.

“With public gatherings and even personal contact limited, there is no reasonable expectation that we can finish the task without needless risk to the health and safety of our circulator network and to Nebraskans in general,” the group said in a statement on its website.

Two other ballot campaigns to legalize casino gambling and medical marijuana have said they’re confident they’ll have enough signatures to qualify for the November ballot.

NEW JERSEY

Will NJ delay property tax payments due to coronavirus? State finances may get in the way New Jerseyans struggling to stay financially afloat amid the coronavirus emergency are now facing uncertainty about another deadline just weeks away: Property tax bills come due May 1.

While the state has taken extraordinary efforts to prevent evictions and foreclosures in the wake of coronavirus' economic destruction, there's been little action when it comes to property tax bills, a highest-in-the-nation burden that shows up in the form of four bills every year.

One lawmaker wants to move the due date back to July, and introduced a bill to do so on Thursday. Another bill that would extend the payment grace period is waiting for action in the Senate.

But Gov. Phil Murphy has been hesitant when asked about property tax forgiveness or postponing the payment, citing the impact of the pandemic on the state's budget.

Murphy on March 27 said the state was "bleeding money" and he had to be careful about giving too many tax breaks. "I've got to make sure we keep the lights on," the governor said. He said earlier this week he had no updates on residents' property taxes.

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Property taxes support the services of local and county governments, like police and health departments working to combat coronavirus, but most of the payment goes to school districts. Last year, New Jerseyans paid an average of $8,953 in property taxes, about $186 more than the prior year.

Several other states have adjusted their property tax collections because of the coronavirus sweeping the nation. Florida extended the payment date by two weeks. In Iowa, the governor suspended fees for late property tax payments the same day she halted evictions. And Murphy's predecessor made changes after Hurricane Sandy hit the state in 2012.

The economic toll of the coronavirus has already hit the Garden State's finances. In March, the state froze nearly $1 billion in planned spending, citing decreased revenues from the state shutdown of businesses and the delayed income tax filing deadline. Part of that was nearly $142 million in the Homestead Benefit Program, a tax credit program for certain homeowners who meet income eligibility requirements.

More than half a million residents have claimed a credit through the Homestead Benefit Program, which is worth on average $255, according to data from the New Jersey Department of Community Affairs. The credit shows up on the May 1 tax bill.

"Although I am not in truly dire straits, this Homestead Benefit freeze does create a hardship for me," said Cathy O'Neill, a 68- year-old retiree who lives in Brick. "If New Jersey is going to treat its tax relief programs as optional, it gives me one more reason to think about moving out of the state."

Suspending the Homestead Benefit makes it even more important to help residents amid a time of record-setting unemployment, said Stephanie Hunsinger, AARP New Jersey’s state director.

"An extension that coincides with the state and federal income tax deadline of July 15 would reduce confusion and further promote public health, financial relief and peace of mind for all Garden State residents," Hunsinger said.

Senate President Stephen Sweeney, D-Gloucester and a gatekeeper of what gets done in Trenton and what doesn't, has signaled support for delaying the due date as one of many ways to ease the financial burden on residents. His idea was deferring property tax payments for 45 to 60 days, but he has not taken action in the Legislature to make the change.

Assemblyman Robert Karabinchak, D-Middlesex, filed a bill Thursday to delay the May 1 due date to July 15, when state and federal tax returns are now due, for commercial and residential properties. Moving the due date would allow more financial flexibility for cash-strapped families and small businesses with tight budgets, he said in a statement.

The Assembly has passed another bill, A3902, which gives the state more authority to control municipal deadlines, such as filing budgets, during a state of emergency. The bill, which has not been vetted by the Senate, also allows for extending the grace period for property tax due dates. It is unclear which, if any, of those proposals will move forward.

A slate of bills, the majority of which are meant to provide financial relief from coronavirus, were introduced in the Legislature on Thursday, and the Senate and Assembly are scheduled to vote on the bills Monday. They will conduct their business by phone to accommodate social-distancing restrictions.

It would be rare but not unprecedented to delay the payment date.

After Hurricane Sandy pummeled New Jersey, then-Gov. Chris Christie extended the grace period for fourth-quarter property tax payments by 5 days and allowed municipal governments to extend the grace period through the end of the year. Bills were due three days after the hurricane hit the state.

Christie did so via an executive order, which cites the financial hardships facing many hurricane victims and in some cases their inability to access their homes and financial records.

LOCAL GOVERNMENTS FACE FINANCIAL CRUNCH FROM CORONAVIRUS

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The coronavirus pandemic has wrecked state finances – ballooning its spending, decimating its tax collections, requiring a federal rescue to keep it afloat. Similar stresses, though not as severe, are faced by local governments.

“What they have in common primarily is uncertainty,” said Marc Pfeiffer, assistant director of the Bloustein Local Government Research Center at Rutgers University. “There is an enormous amount of uncertainty on the revenue side that municipalities and state government are facing over the next year.”

Pfeiffer said expenses are not the biggest problem facing counties and municipalities because of the disaster declaration approved by the federal government.

“So, municipalities will have a short-term issue they’ll have to deal with where they have to put the money out, but they’ll get reimbursement from FEMA on that,” Pfeiffer said.

Revenues could be an issue. Laid-off homeowners and small businesses that are shuttered could have a hard time paying property taxes, and the next quarterly bill due is due in about three weeks.

“The most significant challenge that municipalities face right now is the May 1 property tax collection date,” said Pfeiffer, who noted that in addition to collecting revenues to fund their own operations, municipalities “are in the tax collection business” and have to transfer money to schools and counties.

“For some residents that have suffered a financial collapse, yes, paying property taxes is going to be a problem, and we need to figure out some solutions for that,” he said.

Direct payments of $1,200 per adult and $500 per child should start arriving in bank accounts this week from the federal government. Pfeiffer says “that’s not a whole lot of money” when compared with the average property tax bill in New Jersey, which tops $2,200 a quarter.

For people who pay their property taxes through their mortgage, the May 1 payment shouldn’t be an issue. Mortgage services are expected to be able to make those payments through the escrow accounts of their customers.

For those who pay their taxes directly, municipalities can reduce interest rates due for property taxes that aren’t paid by the end of the normal grace period. But they need that cash, or to borrow it, in order to pay staff – including police and other first responders. Pfeiffer says municipalities might turn to tax anticipation notes, which would incur interest costs but address short- term cash-flow needs.

“There’s going to be a time where we have to muddle through this, and hopefully it’s three to six months and then we’ll be back to some sense of normalcy,” he said. “So our solutions have to be ones that will just get us through this period.”

Pfeiffer said municipalities have a limited surplus to fall back on. And he said it’s not a simple thing to delay the May 1 property tax payments, as some have called for.

“The problem with deferring the tax payment date is that if you do it for two months, the homeowner is then going to be faced with two payments within a month of each other. And that puts extra stress on a family budget,” he said.

Small businesses that receive Paycheck Protection Program loans, which can be converted into grants, or other support from the U.S. Small Business Administration or state Economic Development Authority can use those funds to help cover property taxes, Pfeiffer said.

In some cases, local governments will lay off workers. But Pfeiffer said he expects that will be limited, given that some local workers are on the front lines of responding to the emergency. He also said many municipalities in New Jersey never reversed cutbacks made after the Great Recession and Superstorm Sandy, in part due to the 2% cap on annual growth in property tax levies.

Jersey City expects a $70 million budget impact, including $20 million in added costs and $50 million in lost revenues, and is offering buyouts to more than 400 nonessential employees with at least 15 years of service. They earn a combined salary of $22.7 million and will be eligible to receive $20,000 or 25% of their salary, whichever is greater.

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“I wouldn’t look at Jersey City as a typical municipality,” Pfeiffer said. “I think Jersey City is an outlier in this case of the actions that they’re going to have to do.”

NEW YORK

Too late to halt L’pool’s property-tax reassessments

Salina Town Supervisor Colleen Gunnip said she favors continuing property-tax reassessments in the village of Liverpool despite protests from the village’s board of trustees.

“We’ve already done the rest of the town,” Gunnip said on April 9. “We have to fairly and equitably oversee the distribution of the tax levy.”

For instance, she said, it would be unfair for a Galeville homeowner who has already been reassessed if reassessments are delayed for Liverpool homeowners.

Gunnip and Tax Assessor Denise Trudell declined to discuss the percentage of increases so far across the town.

“Denise is still reviewing all the data,” Gunnip said.

At a special meeting on April 1, village of Liverpool trustees unanimously passed a resolution requesting that the town suspend its ongoing reassessments of real property within the village until after the COVID-19 pandemic has run its course.

“We believe in fairness,” wrote Trustee Christina Fadden, “but unfortunately the revolving assessment process through segments of the town means that once it is a community’s ‘turn,’ the jump in values can be dramatic, and a shock to a household’s finances or a business’s costs.”

Fadden shared her observations in an April 2 letter to state Sen. Rachel May (D-53rd District).

The trustees’ April 1 resolution – posted in its entirety at villageofliverpool.org – was offered by Trustee Jason Recor and seconded by Fadden.

Trustees Matt Devendorf and Michael LaMontagne and Mayor Gary White completed the unanimous approval.

Five days later, on April 6, White and Gunnip shared a conference call also including Trudell, at which the town officials insisted that the reassessment process would continue.

“I just think it’s inexcusable what they’re doing,” White said at the time.

The issue would be discussed along with Trudell at the next town board meeting on Monday, April 13, Gunnip said.

Trudell is a state-certified assessor with 30 years of experience. She heads an office that also includes appraiser Marc DiCerbo and his aide, Tom Cardinal. Trudell has worked as a tax assessor in Jefferson County and in at least 10 different Upstate towns, including Lewis, Montague, Osceola and Salina. She lives in Williamstown.

‘Higher tax burden’

The village resolution argues that “said reassessments/revaluations will result in a higher real property tax assessment for many properties within the Village of Liverpool and a higher tax burden.”

White expressed two primary concerns: senior citizen residents on fixed incomes and commercial properties housing businesses now closed due to the pandemic.

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“We have quite a few elderly homeowners in the village who will find it difficult to deal with raised property taxes,” he said. “And with so many businesses closed now, those closures have significant impact on the fair market value of these businesses and properties that won’t be accurately reflected in the revaluation process.”

Fadden agreed.

“Many homeowners and businesses in the village will be asking whether their property truly is the value they will be told, when other assets have taken a dramatic downturn in value during this extraordinary pandemic crisis, and businesses are closed or operating at a severely reduced level,” she wrote.

But the town resists the calls for reconsideration. After checking in with several other area municipalities and with county officials, Gunnip said she found most municipalities moving ahead with their reassessments.

As to residents’ right to grieve their reassessments, Gunnip said that new technologies should make that process quick and easy.

But White thinks otherwise.

“Here in the village we have many senior citizens, some of whom don’t have computers or smart phones,” he said. “These residents will have a hard time grieving their assessments.”

Gunnip expects the reassessments to be completed by May 1, and grievance day is scheduled for May 26, the fourth Tuesday of that month.

Property taxes in New York

How is the value of property assessed for tax purposes in your state? Which types of property are subject to tax?

In New York, all real property is subject to: real property tax; special ad valorem levies; and special assessments (unless exempt by statute).

Personal property is generally not subject to property tax. However, tangible personal property that is affixed or erected on real property is subject to property tax.

State rate

What is the state property tax rate?

There is no state property tax in New York. The property tax is a local tax, raised and spent locally to finance local governments and public schools.

Local rates

What is the range of local property tax rates levied in your state?

The property tax rates are determined annually based on the budget of the locality imposing such tax. The tax rate is imposed on the assessed value of the real property, which may be lower than the fair market value of the property. New York State imposes constitutional limits on the percentage of the tax and the allowance for inflation.

Exemptions and deductions

What exemptions and deductions are available?

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New York State law provides various exemptions from property tax that are based on a variety of factors, including ownership, location, or use of property (or a combination thereof). Available exemptions include: charitable organizations; government-owned property; educational organizations; and housing programs.

Filing requirements

What filing requirements and procedures apply?

Property taxes are assessed by the local jurisdiction imposing such tax and furnishing a bill to the property owner. The deadlines for when assessments are finalized and payments are due varies by each assessing district. In New York City, property tax bills are finalized in June and the payments must be made quarterly, although prepayments are allowed.

Real estate transfer tax

How is the transfer of real estate taxed in your state (including tax base, rates, exemptions, and filing formalities)?

New York State and New York City impose transfer taxes on the transfer of real property or an interest therein (each jurisdiction has a complex definition of ‘interest in real property’, which includes the transfer of a controlling interest in an entity that owns real property in such jurisdiction—certain transfers of interest may be aggregated for this purpose). Transfer tax is also due on the creation of certain leasehold interests. In New York State, the rate is generally $2 for every $500 of consideration or fraction thereof. New York State imposes an additional 1% transfer tax (mansion tax) on the transfer of residential property where the consideration is $1 million or more.

Other local jurisdictions also impose real estate transfer tax. For example, in the Peconic Bay region, there is a 2% transfer tax (the basis of the tax varies depending on the township and whether the land has been improved).

In New York City, real property transfer tax applies when the consideration is greater than $25,000. Generally, for residential property, the rate is:

1% if the consideration is $500,000 or less; and 1.425% if the consideration is more than $500,000.

For all other types of property, the real property transfer tax is:

1.425% if the consideration is $500,000 or less; and 2.625% if the value is more than $500,000.

Excluding mansion tax—which is the primary obligation of the grantee—both New York State and New York City transfer taxes are primarily the responsibility of the grantor (although the grantee is secondary liable). Consideration for transfer tax purposes includes any obligations of the grantor (including transfer taxes) that are paid by the grantee.

New York State and New York City statutorily exempt certain entities from transfer tax, including the U.S. government and its agencies. However, if the other party is not exempt and the transaction is not exempt, the tax still applies and is paid by the other party. Further, both jurisdictions exempt certain transactions from transfer tax, including to the extent that the transfer represents a mere change in form with no change in the beneficial ownership and transfers to nominees. New York City also exempts transfers to and from charitable organizations.

NYC Provides Guidance For Programs Available To Property Owners For Relief From Property Taxes In the midst of the global COVID-19 (Coronavirus) pandemic, the New York City Department of Finance (“DOF”) recently publicized several programs aimed at assisting property owners experiencing hardships with making their property tax payments. The programs are not new but may provide relief for homeowners and other property owners experiencing

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hardship during these difficult times. Among the DOF programs available to eligible property owners are the Property Tax and Interest Deferral (“PT AID”) Program, standard payment plan options, and exemption programs that lower the amount of taxes owed. I. Property Tax and Interest Deferral (PT AID) Program In the event that an unexpected event or hardship makes it difficult for a property owner to pay its property taxes, eligible property owners can defer their property tax payments or pay only a small percentage of their income towards their property tax payments under the PT AID program. Accordingly, this program allows property taxes to be deferred for a given length of time, such as a fixed length for a temporary hardship or for a longer period because of a chronic hardship. The amount of taxes that can be deferred depends on the type of home you own. For example, you can defer an amount equal to: (a) up to twenty five percent (25%) of the equity in a one, two, or three-family home, and (b) up to fifty percent (50%) of the equity in a condominium unit. The following three payment plans are available under the PT AID Program for eligible homeowners who have fallen behind or are in danger of falling behind on their property taxes: (1) Extenuating Circumstances Income-Based (“ECI”) Plan, (2) Fixed-Term Income-Based (“FTI”) Plan, and (3) Low-Income Senior (“LIS”) Plan. 1. Extenuating Circumstances Income-Based (“ECI”) Plan Under the ECI Plan, homeowners experiencing a temporary loss of income due to extenuating circumstances can enter into a payment plan that limits their payments to a maximum eight percent (8%) of their adjusted gross income during the duration of the hardship. Extenuating circumstances are defined as (i) loss of income, such as a job loss, (ii) the death or illness of a property’s owner or immediate family member, or (iii) enrollment in the Department of Environmental Protection’s Water Debt Assistance Program. To be eligible for the ECI Plan: (1) the applicant must own a property that is a one, two, or three-unit class 1 residential property or a condominium unit; (2) the property must have been the applicant’s primary residence for at least one year; (3) the applicant must have a federal adjusted gross income of $58,399 or less; and (4) the applicant must provide supporting documentation of the alleged extenuating circumstance. 2. Fixed-Term Income-Based (“FTI”) Plan Similar to the ECI Plan, homeowners experiencing financial difficulties that are likely to continue into the foreseeable future can enter into a payment plan that limits their payments to a maximum eight percent (8%) of their adjusted gross income under the FTI Plan. Moreover, the FTI plan may include only the delinquent amount or the delinquent amount plus charges projected to be due over the next year. To be eligible for the FTI Plan: (1) the applicant must own a property that is a one, two, or three-unit class 1 residential property or a condominium unit; (2) the property must have been the applicant’s primary residence for at least one year; and (3) the applicant must have a federal adjusted gross income of $58,399 or less. 3. Low-Income Senior (“LIS”) Plan Homeowners that are 65 years of age or older and are experiencing hardship can fully or partially defer payment of their delinquent and future property taxes for a fixed or indefinite period of time under the LIS Plan. Under the LIS Plan, eligible property owners can choose to pay 0% (full deferral), 25%, 50% or 75% of the delinquent and future property taxes. Accordingly, an eligible homeowner can defer delinquent taxes and charges until the property is sold or at another future date. To be eligible for the LIS Plan: (1) the applicant must be 65 or older; (2) the applicant must own a property that is a one, two, or three-unit class 1 residential property or a condominium unit; (3) the property must have been the applicant’s primary residence for at least one year; and (4) the applicant must have a federal adjusted gross income of $58,399 or less. II. Standard Payment Plan Options The DOF also offers flexible payment plans for all property owners who have missed payments or have outstanding balances on their property tax bills or other property charges. However, you cannot enter into a DOF payment plan if your property has been placed into a tax lien sale or an in rem action has commenced. The DOF payment plan comes with a significant cost, however, if your property is at risk for a lien sale or in rem action then you may be able to take advantage of the payment plan to avoid loss of the property. For property owners possessing properties with an assessed value of less than $250,000, the annual interest rate under the payment plan would be seven percent (7%), whereas for property owners possessing properties with an assessed value of more than $250,000, the annual interest rate would be eighteen percent (18%). Under the DOF payment plans, property owners can chose a payment plan for a term of up to 10 years and agree to make payments over a period of time such as monthly or quarterly. Moreover, eligible property owners may select a payment plan with no up-front payment. However, the property owner is required to keep current on the payment of property taxes while the payment agreement for the delinquent taxes and charges is in place. Accordingly, the property owner must pay both the installment payments under the payment plan agreement and all new property taxes. The failure to make any payments under the payment plan agreement or property taxes for a period of 6 months triggers a default under the payment plan agreement and possibly termination of the payment plan agreement, which would subject the property owner to collection actions including tax lien sales. International Property Tax Institute IPTI Xtracts- The items included in IPTI Xtracts have been extracted from published information. IPTI accepts no responsibility for the accuracy of the information or any opinions expressed in the articles.

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III. Exemption Programs The DOF offers several tax exemption, abatement, and money-saving programs for property owners and renters. Exemptions lower the amount of tax owed by reducing a property’s assessed value, whereas abatements reduce taxes by applying credits to the amount of taxes owed. One such DOF exemption program is the NYC Rent Freeze Program, which includes the (i) Senior Citizen Rent Increase Exemption (“SCRIE”) Program and (ii) Disability Rent Increase Exemption (“DRIE”) Program. As the name implies, the NYC Rent Freeze Program freezes eligible renters’ rent, and, as such, gives landlords property tax credits to cover the difference between the actual rent amount and what the tenant is responsible for paying at the frozen rate. (1) NYC Rent Freeze Program for Seniors – SCRIE Program To be eligible for the SCRIE program, a property owner must: (1) be at least 62 years old; (2) be the Heath of the Household as (i) the primary tenant named on the lease/rent order or (ii) have been granted succession rights in a rent controlled, rent stabilized or a rent regulated hotel apartment; (3) have a combined household income for all members of the household that is $50,000 or less; and (4) must spend more than one-third (1/3rd) of their monthly household income on rent. If an applicant for the SCRIE program lives in a Housing Development Fund Corporation (HDFC) or Mitchell-Lama development apartments, then the applicant must contact the NYC Department of Housing, Preservation and Development (HPD) to apply for the SCRIE program. (2) NYC Rent Freeze Program for Tenants with Disabilities – DRIE Program To be eligible for the DRIE program, a property owner must: (1) be at least 18 years old; (2) be (i) named on the lease or the rent order or (ii) have been granted succession rights in a rent controlled, rent stabilized, rent regulated hotel apartment or an apartment located in a building where the mortgage was federally insured under Section 213 of the National Housing Act, owned by a Mitchell-Lama development, Limited Dividend housing company, Redevelopment Company or Housing Development Fund Corporation (HDFC) incorporated under New York State’s Private Housing Finance Law; (3) have a combined household income that is $50,000 or less; (4) must spend more than one-third (1/3rd) of their monthly household income on rent; and (5) must have been awarded one of the following: (i) Federal Supplemental Security Income (SSI), (ii) Federal Social Security Disability Insurance (SSDI), (iii) U.S. Department of Veterans Affairs disability pension or compensation, or (iv) Disability-related Medicaid if the applicant has received either SSI or SSDI in the past. The aforementioned DOF programs can provide relief for certain property owners in New York City experiencing hardship, however will fall short to protect many commercial property owners that will experience hardship due to the profound economic impact of the COVID-19 pandemic. If you are an owner of a one, two, or three-family property or condominium or own commercial property that is at risk for a lien sale or in rem action you should consider these programs before making your next property tax payment.

A Missed Opportunity To Reform New York’s Inequitable Property Tax System Our city’s property tax system is overly complex, inequitable and unfair. After decades of inaction, another report was issued with some suggested reforms. Earlier this year, the New York City Advisory Commission on Property Tax Reform released a new set of recommendations that explicitly recognize the inherent inequalities at play.

After a year of deliberation and study, the commission unveiled 10 actions that New York City can pursue to reform this broken system, including reclassifying coops, condominiums and smaller rental buildings into a new residential-class; assessing each property in the residential class at its full market value and implementing comprehensive reviews of the system every 10 years. While it is important that the city acknowledges that the current system is broken, the report is, unfortunately, light on details. It also puts forward some suggestions that will lead to further inequities and stops short of calling for the changes that New York desperately needs.

The commission missed the chance to recommend broad, systemic reforms that would address NYC’s housing affordability crisis. The fact is that our property tax system does not align with our policy goals. The current property tax system discourages the creation and preservation of rental housing, and the reforms proposed do nothing to fix this misalignment.

New York is a city of renters. In many instances, a third of a tenant’s rent is paid to cover property taxes. Apartment buildings are taxed at a disproportionally high rate, which makes it extremely difficult to develop and preserve affordable housing. At a time when families are struggling to pay rent in the five boroughs, studies show that multifamily housing can be a viable solution.

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Addressing our housing crisis means finding a way to reduce the tax burden on multifamily properties.

We believe that the report’s proposal to put single-family homes, co-ops, condominiums and smaller rental buildings into one property class and multi-family rental and commercial buildings into other classes will perpetuate continued inequities moving forward. Elected officials will favor the property class containing family homes, co-ops, condominiums and smaller rental buildings while continuing to punish multifamily rental and commercial buildings.

Going forward, there also must be a much closer examination of the way cooperatives and condominiums are treated. Any changes that are considered need to be phased in over a much more meaningful period of time to allow homeowners the ability to adapt to any significant changes.

Now that the commission has released its much-anticipated report, it is time for the real discussion to begin. The discussion needs to include the opaque and illogical manner in which commercial properties are treated. City officials have been discussing changes in the system for decades, but the release of this report represents a window of opportunity. We have the ability to introduce fairness and equality to the system — all while benefiting countless other New Yorkers.

REBNY hopes that a robust and widespread conversation across the five boroughs will follow about these proposed changes. We understand the process of reforming New York’s property tax system will not be simple. There will inevitably be many challenges ahead, but the commission’s report is the first step towards transforming the lives of New York taxpayers. We should seize the opportunity to implement the broad and systemic changes that New Yorkers deserve. James Whelan Real Estate Board of New York

Olean Council Considers Extending Property Tax Payment Deadline The Common Council will hold a special meeting on Tuesday to consider a proposal that extends the deadline for property tax payments. If approved, the collection period beginning on May 1 would be extended from May 31 to June 30.

“People are losing their jobs, and we need to be cognizant of that. We need to be compassionate and do whatever we can as an organization,” Ward 5 Alderman John Crawford said.

According to Crawford, approximately 60% of the city’s tax revenue comes from escrow account payments, which are the portions of mortgage payments set aside in advance to cover property taxes. The other 40 percent comes from property tax payments that residents pay on their own.

Crawford mentioned how escrow accounts would still create cash flow while residents get the extra time they need to pay the rest.

“Banks are going to pay so it's not like we're going to go with without that cash flow for an extended period of time…. It’s the other 40% of the taxes that they get a little additional time to help come up with their money,” Crawford said.

Payments made after the 60-day period will incur a penalty calculated at 2% after July 1, 3% after Aug. 1, 4% after Sept. 1 and 5% after Oct. 1.

This change only applies to 2020 tax payments.

The meeting will begin at 5:30 p.m. in the Council Chambers of the Olean Municipal Building. It will be closed to the public as a COVID-19 precaution. The meeting will be audio recorded and available on the city's website in the days following.

Property Taxes Are Probably Still Due Despite Coronavirus Local governments rely on them to pay for services like trash pickup and the public schools. But some are trying to give flexibility to homeowners in financial trouble.

Everyone has three extra months to pay federal income taxes because of the financial pain caused by the coronavirus pandemic. But what about the real estate taxes on your home? Any flexibility on paying those?

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Maybe. It depends on where you live, since property tax payments are governed by a patchwork of state and local rules.

Extra time to pay could help people struggling with furloughs or layoffs. The average property tax bill on a single-family home in 2019 was about $3,600, but average bills are three to five times higher in some areas of the country, including parts of New York, New Jersey and California, according to Attom Data Solutions, which tracks property trends.

It’s generally harder for local governments to postpone tax payments because they rely on the money — usually paid in lump sums once or twice a year — to finance essential services. And while the federal government has vast financing power, counties, cities and towns have limited reserves of cash and credit to fill budget gaps.

Cities and towns rely on property taxes to fund the very services that are heavily strained because of the virus, said Christiana McFarland, research director for the National League of Cities. “It’s a huge hit on their budgets,” she said.

Some governments have extended spring property tax deadlines by as much as a month because of the economic dislocations caused by the virus. Others are effectively providing extensions to people who need more time by waiving penalties for late payments.

“We’re seeing a wide range of responses,” said Teryn Zmuda, chief economist with the National Association of Counties.

The extensions help people who pay their property taxes directly. People whose property taxes are included in their monthly mortgage payment don’t benefit because the money is already collected in an escrow account. (People struggling with mortgage payments should contact their bank or loan servicer. Relief has been granted for federally backed mortgages and some other home loans.)

Fewer than half of the homeowners in the United States paid their property taxes with their mortgages in 2015, according to a report in 2018 by the Lincoln Institute of Land Policy. The majority either didn’t have a mortgage or had one that didn’t put their property taxes in escrow accounts. (The share of people paying property taxes through escrow accounts varied widely by state.)

Older people are much more likely to pay their property taxes directly; just 20 percent of homeowners 65 and older had escrow accounts, the report found.

In many areas, homeowners are still expected to make property tax payments by the usual deadlines despite the economic strain caused by the virus. For a variety of reasons, “it is more difficult to change property tax filing dates than to change income tax dates,” said Jared Walczak, director of state tax policy at the Tax Foundation, a nonprofit organization focused on tax policy.

Local governments, typically counties or cities, set property tax rates and collect the money. But payment deadlines are often dictated by state law, and changing them may require an act of the legislature — many of which are now in recess — or an executive order.

Property taxes are used to pay for public schools, public health and emergency services, trash pickup, water and sewer operations, road maintenance and libraries. More than two-thirds of counties rely on property taxes for more than one-quarter of their revenue, Ms. Zmuda said. And during the coronavirus crisis, she said, counties are funding increased public health services, spending far beyond what they budgeted.

Postponing receipt of property taxes can cause havoc with local budgets, Mr. Walczak said. Unlike income taxes, which are collected over time through regular payroll deductions and estimated tax payments, property taxes are typically paid all at once or perhaps in a few installments.

Officials are struggling to find a balance between their needs and residents’ newly straitened circumstances. A group of county and tax officials in California urged the state to stick to an April 10 property tax deadline. Allowing all homeowners and businesses more time to pay, they said, “will tip local governments into insolvency at a time when our residents need us the most.”

Counties, the group said, “will use all existing authority” to cancel penalties for homeowners and small businesses affected by coronavirus “on a case-by-case basis.”

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In a statement on Saturday, Gov. Gavin Newsom of California praised the counties’ “commitment” to cancel penalties because of “demonstrated economic hardship” caused by the virus. “This is good news for Californians,” he said.

A spokesman for Mr. Newsom said on Thursday that his office was “looking into further actions as well.”

Taxpayer and business groups have urged the governor to extend the deadline by 90 days, arguing that applying for waivers is burdensome, and that counties may grant them inconsistently.

Florida has extended property tax deadlines statewide about two weeks, to April 15 from March 31, because of the virus. King County in Washington State, which includes Seattle, a city hit hard by the virus, has postponed its spring deadline by a month, to June 1. West Virginia approved a statewide one-month extension to May 1. San Francisco has moved its deadline from early April to May 4, when it expects a stay-at-home order to be lifted.

Some New York state and county officials have asked Gov. Andrew M. Cuomo to postpone May property tax deadlines. A request for comment sent to the New York governor’s office was forwarded to the State Division of the Budget. A division spokesman, Freeman Klopott, said Wednesday that the state was “open to discussing adjustments to those dates at the request of the impacted local taxing jurisdictions.”

New York City follows a different payment schedule. In a transcript of remarks on March 22, Mayor Bill de Blasio suggested that the city was unlikely to extend an April 15 city tax payment deadline for some homeowners, given “skyrocketing” expenses and “plummeting” revenue because of the coronavirus crisis. But he added, “We’re going to look at everything.”

Here are some questions and answers about paying property taxes:

What happens if I don’t pay my property taxes?

Failure to pay your property taxes can lead to financial headaches like penalties and interest and, eventually, more serious problems like a lien on your home. Local governments may auction delinquent properties to collect back taxes, or sell the liens to companies that, in turn, may foreclose. Some areas, however, have temporarily halted tax lien sales because of the coronavirus outbreak.

Are there programs that can help me if I can’t pay?

Even before the virus, most tax authorities offered programs that reduced property taxes for low-income, disabled or elderly people and veterans. Some also offer those suffering financial hardship the option to defer payment or arrange an installment plan.

“There’s a lot of variation in how flexible taxing authorities are,” said Sarah Bolling Mancini, a lawyer with the National Consumer Law Center.

To find out whether your local government has postponed payment deadlines, or for instructions on how to request a deferred payment or payment plan, contact your local tax collector or tax commissioner’s office. Some offices may be closed because of the virus, so it’s best to start by checking the agency’s website.

Can I challenge the assessment on which my property tax bill is based?

Yes, but usually you must do this well before the tax bill comes due. Most communities send property owners assessments months before bills are issued and set a deadline for appeals. If it is too late to appeal the assessment used to calculate your current tax bill, you can plan to challenge the assessment for next year.

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Pennsylvanians may get more time to pay their municipal and county property tax bills

House Majority Leader Bryan Cutler, R-Lancaster County, chastised Democratic lawmakers on Tuesday for opposing a GOP- crafted COVID-19 response measure that included what he described as "common sense fixes" to state government's reaction to the virus.

The state Senate approved a bill that would allow local and county governments to extend property tax deadlines to provide relief to Pennsylvanians hit hard by the economic toll of the coronavirus.

It was one of two COVID-19 response bills that saw action in the General Assembly on Tuesday. The other one passed by the House, while far more controversial, had more to do with state government’s response to the virus and the impact it has had.

The bill the Senate approved by a 50-0 vote would give municipal officials the option of extending the discount period for paying municipal and county property tax bills through Aug. 31. It also would allow them to waive any penalty on those tax bills provided they are paid in full by Dec. 31.

It now goes to the House for consideration, which ended its session on Tuesday putting members on a 12-hour call.

Municipal and county officials would have to decide within 30 days after the bill’s enactment to make a decision whether to take advantage of this option to provide financial relief to their property owners.

The measure would also permanently give local governments permission to hold remote meetings. Another provision in that bill would give notaries emergency authorization to notarize documents remotely through the use of communications technology during this COVID-19 disaster declaration.

The bill also would authorize the Pennsylvania Health Care Cost Containment Council to issue a report on the cost of the pandemic on the state’s hospitals and health systems so that information is available should state or federal assistance become available to help them recover costs.

Over in the House, another COVID-19 response bill that focused on actions taken at the state level passed on a 108-93 party- line vote. It now goes to the Senate for consideration which is expected to occur on Wednesday.

This bill called for the formation of a 23-member bipartisan task force comprising representatives of all three governmental branches to craft a plan to help the state recover from the pandemic. It would require the governor to give legislative leaders timely notice of disaster declarations and regulations and laws that are suspended.

Additionally, it directs the treasurer, auditor general and budget secretary to look for ways to take advantage of historic low interest rates through refinancing the commonwealth’s outstanding debt.

House Democratic leaders complained of not being given the opportunity to have input in this measure with limited opportunity to try to amend and debate it. Further, House Democratic Leader Frank Dermody of Allegheny County saw it as an attempt by the GOP-controlled House leaders to take away power from the governor.

“We want to work with you and we should all want to work with the administration to make sure that they have the flexibility they need to address these problems right now right away,” Dermody said.

But House Majority Leader Bryan Cutler, R-Lancaster County, responded saying Democrats were given a week to offer input on ideas for emergency response legislation chance before this proposal was crafted but were silent.

“If we cannot do these simple common sense fixes achievable today on behalf of members of the commonwealth than this virus has taken far more than what we will lose because of the pandemic. We will have lost the public’s trust,” Cutler said.

The governor will review the bills if they his desk, said Lyndsay Kensinger, a spokeswoman for Wolf. International Property Tax Institute IPTI Xtracts- The items included in IPTI Xtracts have been extracted from published information. IPTI accepts no responsibility for the accuracy of the information or any opinions expressed in the articles.

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NEW MEXICO

State decides no property tax extension

New Mexico is not giving extensions for property taxes, although state officials are considering asking the New Mexico Legislature for penalty and interest credits.

Chaves County Treasurer Charlotte Andrade advises county taxpayers to make their second half of 2019 payments now.

Andrade said she and other county treasurers talked with Cabinet Secretary Stephanie Schardin Clarke, head of the New Mexico Department of Taxation and Revenue, about deferring payments, at least temporarily, given that many people across the state are experiencing job and income losses due to COVID-19 and the business and employment restrictions put in place to prevent its spread.

“Basically we just wanted to get feedback from the state as far as possibly extending the due date for property taxes,” Andrade said.

She said they were informed no extension would be given, because the money collected is needed right away by local school districts and other entities for their operations and debt payments.

“In order to keep everyone going and because they need that cash flow, we are going to maintain the April 10 due date, with May 10 being the 30-day date, which taxpayers can make their tax payments without penalties or interest,” Andrade said.

She added that penalties and interest actually would not kick in until May 11 because May 10 is a Sunday.

A Taxation and Revenue Department spokesman confirmed the state’s decision.

“Statute does allow us to extend the deadline to pay property taxes, but we have not done so because of the cash flow repercussions for political subdivisions,” said Communications Director Charlie Moore. “Counties, school districts, special districts (like water and soil conservation districts, for example), and to a lesser extent, municipalities, all depend on biannual receipt of property taxes to pay operating costs and bond debt service.”

But Moore added that the department is considering requesting legislative action to offset any penalties or interest that might accrue due to late payments.

“We do not have authority in statute to waive penalty or interest,” he said. “So we do plan to approach the Legislature to create a one-time credit equal to the amount of penalty and interest incurred as a result of the coronavirus pandemic.”

Although the Chaves County Treasurer’s Office is closed to the general public until at least April 30, Andrade said that taxpayers have four ways to make the payments.

They can pay online or by an automated phone system. Some fees are charged with those options due to the use of credit or debit cards or an electronic check. Taxpayers also can mail a check or money order. Another option is to drop off a check or money order to the Treasurer’s Office drive-up window on the east side of the Chaves County Administrative Center at 1 St. Mary’s Place.

Anyone with questions can call the Treasurer’s Office from 8 a.m. to 5 p.m., Monday through Friday, at 575-624-6618. An email also can be provided. Additional information is also available on the Treasurer’s Office page of the county website, www.co.chaves.nm.us.

Andrade said advertisements and reminder notices have provided local taxpayers with information as well.

The first half of 2019 property taxes were due no later than Dec. 10. What is now due is the second half.

Some taxpayers also have been participating in a pre-payment option that allows smaller monthly payments, Andrade said.

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“We have a lot of taxpayers who are utilizing the pre-payment option,” said Andrade. “We just have to wait to see. Hopefully by the May 10 (deadline), people will have started receiving the stimulus (checks). … We are hoping that will help. In general, we are just trying to (continue collections) because of the trickle down effect for all the entities that we collect for.”

Chaves County collects about $34.6 million worth of property taxes each year from about 40,000 accounts. The Treasurer’s Office collection rate has averaged 99.38% during the past 10 years.

NORTH CAROLINA

Late on your 2019 property taxes? Durham and Wake counties are giving thousands a break

People past due on their property taxes in Wake and Durham counties are getting a reprieve while businesses are closed and people are stuck at home to avoid spreading the coronavirus.

Both counties are suspending collection efforts until the pandemic begins to slow, their tax administrators said Tuesday. People with overdue tax bills will still owe the money and the interest that will accrue the longer those bills remain unpaid, they said.

“Our job in the tax office is not to issue punishments. It’s to be a partner with the community,” Durham County Tax Administrator Dwane Brinson said. “The reason people pay taxes is so that the county, the city, the jurisdiction can provide services, and that’s all that we want.”

Orange County is not suspending collections at this time, Orange County Tax Administrator Nancy Freeman said.

“It’s hard to look at somebody, knowing that they’re having trouble paying their taxes, but knowing that we need to get that money in here as well,” Freeman said.

Taxes on land and other real property are levied each year in July and due Sept. 1, although state law gives property owners until Jan. 5 to pay before charging interest.

Past-due bills are charged an initial rate of 2% in January, and 0.75% every month after that. Between March 1 and June 30, state law requires tax offices to publish taxpayers’ names and the amount they owe in the local newspaper.

Although an unpaid tax bill can lead to foreclosure, tax offices usually start with other tools, including garnishing wages, collecting from a bank account or state tax refund, or arranging a payment schedule.

If those methods don’t work, the tax office can seek foreclosure to pay the bill in District or Superior Court, depending on the amount owed. Freeman noted that a foreclosure process in Orange County can take six to eight months and usually starts only after the property owner has racked up unpaid taxes for multiple years.

Roughly 85% of past-due taxes are paid in full after the foreclosure process starts, she said.

Tax collectors can’t waive tax bills or interest on overdue taxes — that would take action by the General Assembly — but they do have some leeway when it comes to enforcing tax collection, local officials said.

While unpaid bills can trigger foreclosures, that process can take up to a year or more, they said.

MOST PROPERTY TAXES PAID

Wake County has collected about 99.3% of the taxes owed for last year, leaving about 8,000 bills — roughly $7 million — unpaid, Revenue Director Marcus Kinrade said. Although they are not enforcing collections at this time, he said, the office is reaching out to delinquent taxpayers by phone and by mail.

Orange County reported a similar collection rate last year, Freeman said. The county still has 1,944 unpaid bills, or a total of $3.2 million in past-due property taxes, she said.

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In Durham County, there are other challenges after a March 6 cyber attack that left roughly 1,000 computers and 100 servers contaminated, Brinson said.

The city of Durham had a similar number of computers and servers damaged in that attack.

Property owners can still mail in their payments or pay online through a third-party vendor, Brinson said, but the tax office staff can’t look up anyone’s bill or enforce collections. The office also is closed to prevent the spread of the coronavirus, he said.

Durham County had collected just over 98% of last year’s tax payments by March 6, Brinson said. His report to the Durham County commissioners in February showed that $13.7 million in property taxes was overdue.

Durham County’s tax office will send property owners another notice about overdue taxes and the suspension of enforcement measures once the computers come back online, he said. If the coronavirus shutdown lasts more than 30 days, they may need other options, he said.

“We understand it’s been tough times. Not only has Durham County’s system been down, but the unemployment rate has skyrocketed, everything is closing down, people are out of jobs, we understand that. It’s affected us, too,” Brinson said.

The News & Observer reported Tuesday morning that 140,000 new unemployment claims had been filed since March 16.

DELAYED CORONAVIRUS FALLOUT?

Tax officials from all three counties emphasized that collecting taxes is important, because counties, towns and fire departments rely on that money to meet the need for social services, police and fire protection, emergency services, and education, among other services.

The real challenge could be later this summer, Kinrade said, when new property tax bills arrive in the mail. Property owners and small businesses still could be struggling to recover from extended closures and lost business, he said.

“When we issue new bills in July, ... we might have a lot of people unemployed who won’t be able to pay,” Kinrade said.

Some counties also might see a drop in property taxes paid on motor vehicles, in part because the economy could discourage people from buying a new car or truck with a higher value, he said. Or people might delay renewing their vehicle registration and the property tax bills that accompany registration notices.

However, he doesn’t expect the economic effects of the coronavirus to affect real property tax revenues unless the real estate market takes a big hit. Even then, it should only be a problem in counties planning a 2021 tax revaluation, he said.

That includes Orange County, which last completed a revaluation in 2017. Wake County won’t do another revaluation until 2024, and Durham County is scheduled to complete one in 2023.

OKLAHOMA

Coronavirus in Oklahoma: Assessor 'must wait and see' virus effects on property values

Oklahoma County Assessor Larry Stein said Friday that it will be next year before his office can consider the effect of the coronavirus on property values, if there are any.

"The statutes require on January 1, 2020, the values for ALL property are set for the year of 2019," Stein said in a press release. "Appeals for 2020 are based upon the market conditions up to December 31, 2019, long before the COVID-19 virus impacted Oklahoma and the United States. The impact of the virus on property values in Oklahoma County will be evaluated as part of the decision-making process NEXT calendar year, as the law requires. International Property Tax Institute IPTI Xtracts- The items included in IPTI Xtracts have been extracted from published information. IPTI accepts no responsibility for the accuracy of the information or any opinions expressed in the articles.

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"Our staff will undertake a complete re-evaluation of ALL of the nearly 330,000 parcels of property in Oklahoma County’s 720 square miles this year to determine any impact on property values. The results of that evaluation could have ripple effects for years to come. Our staff will do everything we can to address those impacted and consider any changes of value for ALL property at the appropriate time. My staff will do everything possible to take into consideration the impact of the COVID-19 virus has had on the value of homes or businesses."

Stein added, "We are hoping and praying for a tremendous economic recovery. Billions of dollars in federal help through loans/grants were made available to businesses. In addition, many businesses have insurance policies that protect them from lost revenue and actions beyond their control. Those funds and insurance protection may change the economic forecast and affect the property values in our county. The law requires we must wait and see."

PENNSYLVANIA

Pennsylvania’s Older Adults and Residents With Disabilities As part of the COVID-19 relief packages provided by the federal government, qualified United States citizens and resident aliens will be receiving an “Economic Impact Payment,” also being referred to as the “Stimulus Check.”

The COVID-19 Stimulus Check

The Stimulus Check will be automatically mailed to individuals who meet the adjusted gross income requirements. (Simply stated, “adjusted gross income” or “AGI” is your gross income minus certain deductions.) Single filers with AGI up to $75,000 and head of household filers with AGI up to $112,500 will receive a Stimulus Check in the amount of $1,200. Persons who are married filing jointly will receive $2,400 total provided their AGI is less than $150,000. In addition, each eligible person will receive an extra $500 per qualifying child. For individuals with AGI greater than these amounts listed, there is a reduction in the Stimulus Check payment, which is phased out at $99,000 for single, $136,500 for head of household, and $198,000 for married filing jointly. To receive the Stimulus Check, most citizens do not need to take additional action. Payments are to be issued to those who: have already filed their tax returns for 2019; have not filed 2019 tax returns but did file in 2018; Social Security and Railroad Retirement recipients; Social Security Disability Insurance (SSDI) recipients; or, survivor recipients for those programs. If you would like to confirm your status as a non-filer, please visit the IRS website.

The PA 2019 Rebate Program

Although the Stimulus Check will provide some welcomed financial relief, Pennsylvanian older adults and residents with disabilities who normally apply for the PA Property Tax or Rent Rebate Program (“Rebate Program”) are concerned about the impact that payment will have on their eligibility for the 2019 Rebate Program. The good news is that the Stimulus Checks will not be considered income for applicants of the Rebate Program. As a result, applicants should not include the Stimulus Check amount on their Property Tax or Rent Rebate Claim Form (PA-1000). Additionally, the Pennsylvania Department of Revenue has announced an extension of the deadline for applying for the 2019 Rebate Program from June 30, 2020, to December 31, 2020. Although the deadline has been extended, it is important to remember that rebates are distributed as applications are received; therefore, it is recommended that eligible seniors and persons with disabilities apply as early as possible to hasten their receipt of payment.

TENNESEE

Property tax relief: Shelby Co. Assessor seeks permission to act as housing market tumbles

The office of Shelby County Assessor Melvin Burgess has a plan to help property owners during the coronavirus crisis: Lower the assessed value of businesses that have closed because of COVID-19, update the market value of real estate in the county, and broaden eligibility for tax relief.

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Until then, Javier Bailey, the chief administrator for the Assessor's office, said people will be charged property taxes calculated in part by market conditions that no longer exist.

"Unfortunately, people will be getting tax bills before we see it reflected in sales files," Bailey said of the economic impact of COVID-19.

The current assessments, on which property taxes are based, were conducted over the course of the last year, Bailey said. Those values were determined by a set of key factors including the property's age and location — and sales in the area over the last three years.

The housing market has begun to show the signs of a COVID-19 slump.

Home sales tumbled 8.5% from February to March, the National Association of Realtors announced Tuesday. And that decrease is expected to drop further, according to a forecast from the Federal National Mortgage Association, more commonly known as Fannie Mae. A 14.7% year-to-year decrease in home sales from 2019 to 2020 is expected.

But in order to act, Bailey said, the Assessor's office first needs permission from Tennessee Comptroller of the Treasury, Justin Wilson, and then the approval of the county commission — at a time when local governments are desperate to maintain their revenue.

Without taking into account lost property taxes, the National Association of Counties found a $144 billion impact on county budgets nationwide through the 2021 fiscal year in a recent study, "Running on Fumes,", on the consequences of COVID-19 on county finances.

Lost revenue from business licenses and other charges and fees are attributing factors — as is a rise in expenditures, according to a writer with the association, Mary Barton.

"County budgets are being stretched to the limit, fielding 911 calls, overseeing emergency operation centers and administering human service programs for millions of newly unemployed residents," Barton wrote.

Bailey said the Assessor's office recognizes that relief for taxpayers will likely translate to less money for local government.

"We've looked at it. It would hurt the city and county some...But the Assessor's biggest concern right now is that it's crazy for us not to recognize that property owners are going to take a hell of a hit," Bailey said.

"Getting that current value update could, I believe, provide some relief to the average taxpayer," he said.

Permission from the Comptroller's office Burgess detailed that point in a letter a spokesperson said was emailed to the Comptroller on April 20.

"Homeowners are out of work, small businesses are closed...Very clearly local property values, sales volume, and taxpayers’ ability to pay their property tax obligations will be negatively impacted by this crisis," Burgess wrote.

As elected officials, the 95 county assessors in Tennessee are tasked with locating, classifying and appraising all taxable property in accordance with state law. The Comptroller's office oversees each of them.

To understand what help the Assessor's office could provide Shelby County taxpayers during the pandemic, Burgess said his office recently reviewed relevant regulations and statutes. "It appears that any relief that might be available would have to be directed by your office," Burgess wrote in his letter to Wilson.

Spokesperson John Dunn said the Comptroller's office could not provide immediate comment because it had not received Burgess' letter. The Comptroller was still reviewing a copy of the letter provided by a Commercial Appeal reporter, Dunn said early Wednesday evening. Burgess' office confirmed the letter was emailed April 20.

Tax relief expansion

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A smattering of state and county jurisdictions in California, Florida, Washington state and West Virginia have extended tax payment deadlines, as of an April 10 New York Times report. And in Cook County, Ill., which encompasses Chicago, the Assessor recently announced plans to reassess property values across the region.

At a press conference Wednesday, Burgess said his office is also seeking to expand the county's tax relief program. Eligibility is currently limited to people with disabilities; veterans or their surviving spouses; and property owners over 65 with a total household income of less than $29,860.

"We want to try to up that," Burgess said of the current ceiling on income to qualify. The Assessor's office also recommends decreasing the age to 50 and allowing relief for a new, special category of people — caregivers for those who've contracted coronavirus — Burgess said.

"That's what we would like to see happen," Burgess said. "We're working closely with the state to figure out what we can provide."

Feds not coming to Nashville's rescue, 20% tax hike possible The federal government is not coming to the city of Nashville's rescue in dealing with the financial fallout of the COVID-19 pandemic, Nashville Mayor John Cooper said.

He pointed specifically to restrictions placed on the federal stimulus program that prohibit cities from using the money to make up for budgetary shortfalls for existing services.

In an exclusive interview with NewsChannel 5 Investigates, the mayor cautioned that taxpayers could end up paying the price -- with a possible property tax increase of more than 20 percent.

Throughout this crisis, NewsChannel 5 is asking the questions our viewers want us to ask.

We began with the mayor, "Let's just start with some straight talk: how bad is the budget situation that you're facing right now?"

"Well, it's the worst in Metro's history. You know, there's no question about that," Cooper answered.

The mayor said the ongoing COVID-19 crisis -- and the virtual shutdown of much of the city's economic life -- has been devastating.

And Cooper had some bad news about the federal stimulus program.

"The federal relief program is fundamentally not going to help Nashville with its budget shortfall," he continued.

That's because restrictions placed on the program prohibit it from being used to help pay for anything for which a city government had previously budgeted, such as police, fire and schools.

"So cities have to deal with that revenue loss, created by COVID-19, on their own," Cooper said.

NewsChannel 5 Investigates asked, "So when it comes to our budget shortfalls, there is not going to be a cavalry riding into the scene to rescue us?"

"That's exactly right," Cooper said.

"Now, in some areas, such as transportation and housing there may be a little bit of cavalry assistance, but for the big numbers there is no federal cavalry here. We are on our own."

Take a look at these numbers.

Metro had budgeted for almost $479 million this year in local sales taxes.

That's now expected to come in at $383 million - a shortfall of $95 million.

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Other taxes, licenses and permits, budgeted for $192 million, now expected just under $135 million.

That's a shortfall of $57 million.

The total expected shortfall now projected to be just under $250 million dollars.

Because the city does not have a rainy day fund, that money will have to come from cash reserves, which the mayor said will need to be replaced in the next fiscal year.

"In the end, it's a sad, tough thing to communicate but I tried to do it directly and straightforwardly," Cooper said.

"There is no choice but to have a significant increase in property taxes."

NewsChannel 5 Investigates asked how much that tax hike might be.

"Well, that is what we're working every day," Cooper responded.

"Measured in a percent, it's going to be on the order of more than 20 percent to be sure."

The mayor said reopening Nashville will help, but what the city - and other cities - really need is more help from the federal government to allow stimulus money to be used for basic government services.

"The direct grant of $122 million to Nashville, we would be able to utilize to support things like our police department -- and that would make funding a ton easier," he continued.

"So we're all lobbying for that," Cooper said. "We join a lot of cities in feeling the same way."

Cooper said that he and his team spend every day, looking for additional savings or new revenue so that they will not have to slash essential government services.

He added that, if the Trump administration changes the way the stimulus is spent or if Congress comes up with a new plan, that could certainly ease the burden on Nashville taxpayers.

Impact on property taxes uncertain due to coronavirus fallout

While it is certain that we will have to pay property taxes and no virus will get us out of that, who is going to bear the burden of the downturn in the revenue received this year by property owners: the owners, the tenants, or the government?

While the answer should be all of the above, how do businesses make sure they are not carrying the entire burden?

Revenue from property taxes depends on two components: appraised property values (determined by county assessors) and property tax rates (set by local governments). Because it is politically unpopular to increase tax rates, local governments often rely on property values rising to increase their property tax revenue.

The next mass reappraisal of property in many counties, including Shelby, Davidson, and Hamilton, will occur in 2021. With this looming reappraisal, the uncertainty of what impact a prolonged coronavirus quarantine will have on those values should be of great concern to real estate owners and taxpayers in the state.

We have been asked many times if there is going to be any property tax relief for Tennessee businesses. While we are in touch with local and state legislators across the state to monitor specific relief, there has been none at this point. We believe that, at best, there could be extensions of tax payment dates, but there is unlikely to be any specific forgiveness.

Counties are not reducing their expenses in light of this crisis, and so they likely can’t afford it. This is especially true in the state’s two largest counties: Shelby County, which recently announced a potential $84.9 million budget shortfall for 2021, and

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Davidson County, whose financial problems have been in the news for months even before the tornadoes and the current public health crisis.

So, what do businesses do for property tax relief? The only answer for property tax relief at this point is to file an appeal for your 2020 property tax value to protect your rights. If your value is changing for 2020, you should receive a notice. If you do not have a change in value, you will not get a notice. Even if your value does not change, you are still able to appeal your value.

Taxpayers should engage counsel early in the process when seeking a property tax reduction, because there are many pitfalls in the appeal process that can deprive them of the tax savings they deserve. There are statutes that may allow for some relief, but you will need to have someone familiar with the process to make the proper arguments to get relief.

The good news is that in the Volunteer State we know that all involved will pitch in so Tennessee comes back stronger than ever.

TEXAS

Online petition launched over Fort Bend County property valuations

Amidst an outpouring of complaints over property tax appraisals in Fort Bend County, a newly launched online petition is calling on the the Fort Bend Central Appraisal District to conduct a “publicly transparent” review of 2020 property valuations before the final certification of the appraised values on July 25, 2020.

“Public response has been LOUD to the skyrocketing numbers released by the Fort Bend Central Appraisal District (CAD) this week,” wrote Precinct 1 Commissioner Vincent Morales in an April 16 Facebook post. “Many of our residents are facing complete economic devastation. In the last three days, I’ve had hundreds of conversations, emails, Facebook messages, and video chat discussions with Precinct 1 property owners. These stories have ranged from infuriating to heartbreaking, and we have to take drastic action to make changes NOW.”

Property owners began receiving appraisal notices on April 11. The notices appraise property at its January 1st market value.

Those who disagree with their 2020 valuation can file a notice of protest. The deadline to file a protest is May 15 or 30 days from the date after the notice is delivered, whichever is later. Amidst the coronavirus pandemic, Fort Bend County Appraisal District requests property owners file their 2020 protest online.

For information on how to file a protest online, visit https://www.fbcad.org/protest/

Precinct 3 Commissioner Andy Meyers is among those protesting his 2020 valuation.

“The value of my 44 year old home was increased $140,000 from last year,” Meyers wrote in a blog post on his website. “70% increase, $100,000 adjustment from the decrease in value last year as a result of my home flooding during Harvey and $40,000 additional value, which I believe is unwarranted given the home’s age, condition, and the fact it flooded.”

Both Meyers and Morales said they’ve taken action in response to the property tax appraisals.

“I refuse to finance our county operations on the backs of people who are victims of the COVID-19 shutdown economy AND victims of the CAD’s improper valuations,” wrote Morales in a Facebook post.

Texas AG: Property Tax Texas AG: Property owners can’t use coronavirus as disaster exemption for property taxes Despite Gov. Greg Abbott declaring a state of disaster on March 13 due to the coronavirus health crisis, property owners can’t claim a disaster exemption to avoid paying property taxes, Attorney General Ken Paxton said.

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The Attorney General’s Office issued an opinion Monday in response to a request made by state Sen. Paul Bettencourt, R- Houston. Bettencourt asked if the temporary tax exemption in section 11.35 of the Tax Code applies to property that has suffered an economic loss, but no physical damage, as a result of the COVID-19 disaster declared by the governor.

Section 11.35 of the Tax Code was adopted by the 86th Legislature in response to the physical damage Hurricane Harvey caused to property in 2017. It created a temporary tax exemption for qualified property damaged by a disaster, as declared by the governor.

The law defined “qualified property” as a “tangible personal property used for the production of income,” “an improvement to real property,” and manufactured homes, which had been “at least 15 percent damaged by the disaster.” If properties met these criteria, the owner was entitled “to an exemption from taxation by a taxing unit of a portion of the appraised value” of that property.”

The opinion analyzes the definition of the terms “damaged by disaster” and “damage.” It concludes that the legislature solely referred to physical losses, and “not to the value of real property as a whole, but instead only to ‘improvements’ that suffered damage due to the disaster.”

The opinion states: “Had the legislature intended to address economic losses or a general decrease in property value due to factors beyond the physical condition of the property, it could have used different language that encompassed those losses.

“Instead, the Legislature limited the real property exemption to improvements damaged by a disaster,” the order concludes. “Construing section 11.35 as a whole, a court would likely conclude that the Legislature intended to limit the temporary tax exemption in section 11.35 to apply only to property physically harmed as a result of a declared disaster.”

Prior to 2020, taxing jurisdictions were allowed to request disaster re-appraisals, which resulted in a county appraisal district re- establishing new values, as was the case after Hurricane Harvey.

The Harris County Appraisal District, for example, already mailed roughly 1 million letters to residential and commercial property owners advising them of their Jan. 1 taxable valuations. If recipients of the letters disagree with the valuation, they have until May 15 to protest them.

Even though the physical office is closed, employees are still working, the district says. It encourages filers “to take advantage of our online services such as iFile or iSettle for filing and settling a protest.”

Selecting iSettle allows residents to submit their opinion of value and upload documents for an appraiser to review. The protest can be resolved without coming to the HCAD building, the district says.

It also adds that, “Changes in your market value caused by the current health crisis will be taken into consideration as of January 1, 2021.”

Coronavirus could threaten local property tax limits The coronavirus disaster could have a side effect in a seemingly unrelated area: New limits on increases in local property taxes can be suspended when disasters strike. And epidemics, under state law, are disasters.

You haven’t heard everything yet: The coronavirus could ignite a fight over local government taxes in Texas.

A law passed less than a year ago requires cities and counties to get approval from voters any time they’re increasing property tax revenue by more than 3.5%. The old restriction was 8% — an increase that lawmakers decided was too generous, especially at a time when voters were boiling mad about rising property taxes.

They did leave open some exceptions, though. Local governments don’t have to seek voter approval for increases of more than 3.5% that are attributable to disasters.

It’s not limited to hurricanes and tornadoes, either.

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The pandemic is a disaster, officially speaking. It says so right there in Gov. Greg Abbott’s mid-March proclamation, the one where the governor said, “In accordance with the authority vested in me by Section 418.014 of the Texas Government Code, I hereby declare a state of disaster for all counties in Texas.”

That same government code includes a handy definition: “‘Disaster’ means the occurrence or imminent threat of widespread or severe damage, injury, or loss of life or property resulting from any natural or man-made cause, including fire, flood, earthquake, wind, storm, wave action, oil spill or other water contamination, volcanic activity, epidemic, air contamination, blight, drought, infestation, explosion, riot, hostile military or paramilitary action, extreme heat, cybersecurity event, other public calamity requiring emergency action, or energy emergency.”

You saw it, right? Up there between “volcanic activity” and “air contamination?”

Epidemic.

State Sen. Paul Bettencourt, R-Houston, one of the authors of that legislation, doesn’t believe the coronavirus triggers that exception. He points to something the governor said when the disaster proclamation came out.

“We’ll have to take a look at it,” Abbott said then. “Pretty much the only type of governmental entity that would be affected would be a hospital district, and they weren’t subject to having the rollback rate change.”

That was before the pandemic ripped into the economy. All levels of government — much like all levels of business — face severe financial shock.

It’s not clear any of the local governments want to raise property taxes. At the moment, government folk, like the residents they serve, are wondering how bad the economy will get. City budget years start in October; it will be September before they know what they want to spend, whether that means an increase in property taxes and, if so, how much.

Like the state government, they’re watching business activity — or the lack of it — and waiting to see how bad things really are. Comptroller Glenn Hegar said earlier this month that he’ll revise his estimates of state revenues in midsummer. He didn’t put a number to it, but said lawmakers will have billions of dollars less than they thought in the budget.

“The only way out of the ditch is to get everybody back to work,” Bettencourt said Thursday. “The question is what will be the length of the ditch.”

As sales have fallen, so have state and local sales taxes. It will be another month and a half before Hegar has a hard look at the full extent of lost sales and lost sales taxes. Local officials, who depend on the local portion of that tax, will get a look at the same time.

That’s when they’ll start figuring out what the coronavirus has cost in extra services, how hard it has hit their revenues and what they need to spend to help their communities recover. That will tell them whether they need to raise property taxes to compensate.

At some point, this question about rollbacks — about how much property taxes can increase without voter approval — will come up. Bettencourt says 3.5% is the cap. The association that represents city governments in Austin says it’s 8%.

“It’s clear to us,” said Bennett Sandlin, executive director of the Texas Municipal League. “That’s different than saying we think cities should raise taxes; it’s not like this is a field day. But the way the bill is written, it’s clear that the [3.5%] rollback is suspended.”

Expect a debate. Bettencourt acknowledges as much, but he said it will come after state and local officials have seen the numbers, see the extent of the economic and public health damage, and get around to writing budgets and setting tax rates.

“The debate can wait until fall,” he said. “I don’t see the need for it right now.”

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Webb officials announce freeze in property values The chief appraiser at the Webb County Appraisal District reported to board members last week that most property values in the county will freeze at their 2019 appraisal for the 2020 tax year.

Martin Villarreal, chief appraiser at Webb CAD, said based on property values conducted by the Texas comptroller, the county has reached 100% market value.

“This will allow the Appraisal District to roll over the values from last year,” he said in a statement.

This applies only to residential and commercial properties; and new improvements will still have to be appraised at market value, he said.

Plus they will still need to appraise the values for oil and gas and business personal property accounts, which do not roll over automatically, Villarreal said.

The appraisal district board did not take a vote on this. Villarreal presented the information to them as a result of the district finalizing its appraisals for the 2020 tax year, he told LMT.

Webb County Tax Assessor Rosie Cuellar, who serves on the appraisal district board, said that this is a responsible step in the right direction for property tax relief.

“COVID-19 has drastically affected our residents financially and emotionally. This is certainly going to help our residents with their property taxes, and hopefully give them some peace of mind during this pandemic,” she said in a statement.

Legislation that takes effect this year allows local governments to only bring in 3.5% in additional property tax revenue, regardless of how much property values grow.

With this freeze in effect, local taxing entities will only be able to increase ad valorem revenue with building improvements, new properties added to the rolls, or by increasing in the percentage they tax.

Appraisal districts control property values; the city, county, school districts and college control the amount of that value they receive through taxes.

Laredo’s state Rep. Richard Raymond had been an outspoken proponent of these local revenue growth caps last legislative session. In the county’s press release he is quoted commending Villarreal and Cuellar on this decision.

“Bottom line, taxpayers will have a tax break they really need — especially now,” he said

Will coronavirus lead to higher property tax bills? It can, under new Texas law

Texas lawmakers last year passed a bill that limits how much cities and counties could raise property taxes.

They capped the property tax revenue increase at 3.5% over the previous year — and said local officials would have to get voter approval if they wanted to raise it more than that.

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But a provision in Senate Bill 2 could end up raising tax bills for many Texans this year — all because of the novel coronavirus.

Section 26.07 ( b) of SB 2 notes that cities and counties that need more money to deal with a disaster may raise property tax revenue at the previous limit, which was 8%, without an election, if the governor has declared that area a disaster.

“This opens the door for local taxing jurisdictions to increase tax rates more aggressively,” Lorri Michel, a Texas property tax attorney, said in a statement.

Lt. Gov. Dan Patrick recently cautioned cities and counties about using this loophole.

“No local government should even be thinking about raising taxes,” he said. “That is the worst thing that could possibly happen.”

Patrick said he believes the federal government will “step in and make most states whole, and cities and counties, as we go through this. So there’s no reason for anyone to have (to) raise taxes during this period of time.”

School districts will still be held to a 2.5% cap under SB 2.

DISASTER DECLARATIONS

State Sen. Paul Bettencourt, a Houston Republican, authored the bill and shepherded it through the Texas Senate last year.

In a statement, he said the disaster wording was to provide for situations such as Hurricane Harvey, which slammed into the Coastal Bend in 2017 before dumping more than 50 inches of rain on Houston in just a few days.

“It was designed to allow an area, at their request, to recover from a set of physical damages,” he said.

“The House Ways and Means Chairman Dustin Burrows and I support Governor Abbott’s interpretation that the 3.5% limitation is still in effect.”

Texas Gov. Greg Abbott on March 13 declared that the novel coronavirus is a statewide public health disaster. Tarrant County and Fort Worth leaders — along with communities across the state — followed with disaster declarations, issuing stay-at-home orders to try to slow the growth of COVID-19.

President Trump approved the disaster declaration for Texas, giving the state the ability to gain federal help through assistance programs.

PROPERTY VALUES

Tarrant property valuations generally are sent out mid-April, but the coronavirus pandemic delayed that. They now should be sent out around May 1.

The deadline to file a protest is May 15, but Tarrant Appraisal District Chief Appraiser Jeff Law said he will honor protest filings until June 1 because of the delay in sending out appraisal notices.

Many Travis County homeowners will see no change in 2020 home values

Travis County homeowners are starting to find out if they'll be paying more in property taxes. On Friday, they're getting a first look at their new tax appraisals. Updated market values were posted online on Friday and notices are being mailed out.

“Most residential property owners will not see a change in their market value from the appraisal district,” said Marya Crigler, Chief Appraiser for the Travis Central Appraisal District (TCAD).

Crigler says TCAD didn't have enough data available to make changes in market values for 2020.

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That means 258,203 homeowners will see no change in their values. 144,882 property owners will get updated market values due to new construction, changes to property characteristics or changes in ownership.

The lack of data has been a problem since the Austin Board of Realtors objected to having TCAD use its home sales data.

“It's an ongoing issue for us to continue to work to see if we can find some third parties that will provide us with market data that we can use in our appraisal models,” said Crigler.

Homeowner James Harkins says if his market value doesn't go up it would take the edge off what's been a stressful spring.

“I would be pretty happy with a level tax bill,” said Harkins.

Harkins feels lucky to still have a job but thinks the financial impact of the coronavirus will have many homeowners struggling to pay mortgages and taxes.

“I know a lot of folks are going to need help,” said Harkins.

There's a possibility some help could be coming. A disaster exemption went into effect this year that covers physical damage to property during disasters like hurricanes and floods. The coronavirus has tax officials questioning if the exemption might cover economic disasters, as well.

“We're waiting for guidance to see what the ruling will be from the Attorney General on that specific question,” said Crigler.

If it applies, the exemption could provide some discounts ranging from 15 to 100 percent.

“That really only contemplated physical damage. It's unknown if that can be translated to economic and if so, how they would translate that,” said Crigler.

Any homeowner who thinks their appraisal is incorrect can file a protest through May 15th. Because of social distancing guidelines protests will be handled online or by mail.

VERMONT

Lawmakers consider giving towns leeway to delay property tax payments

Senators will consider a plan that would allow towns to push back payment dates and waive interest and penalties on property tax payments.

The Vermont Senate is planning to pass legislation Monday that would give town officials the authority to delay property tax deadlines this year to provide relief during the Covid-19 pandemic.

The bill would give selectboards and other bodies governing municipalities the power to create new deadlines for property tax payments due in 2020. It would also give them the ability to decrease, waive or establish grace periods for penalties and interest on late property taxes.

A town can currently make changes to property tax requirements, but only if its voters decide to do so at a public meeting.

Sen. Jeanette White, D-Windham, the chair of the Senate Government Operations Committee, which approved the legislation on Wednesday, said towns heard from concerned taxpayers and asked her committee to make the change.

White noted that legislation won’t mandate towns to push back deadlines or waive penalties, but gives them flexibility to do so.

“Some towns may think it’s the right solution, some towns may think it isn’t the right solution,” White said.

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“The towns know their taxpayers and their budgets better than we do, and let’s just let them decide.”

But delaying the property tax deadlines could pose a problem for municipal and state finances.

Towns are responsible for paying the state what they owe for education spending, whether they have collected enough property tax revenue to pay for it or not.

And if towns don’t pay the state what they owe on time, they’re slapped with 8% penalties.

The Vermont League of Cities and Towns is urging lawmakers to add a provision in the legislation to eliminate the penalties towns face for making late payments, if they’re also pushing back deadlines for taxpayers.

“The reason that cities and towns would make incomplete education fund payments in 2020 is that people have no capacity to pay,” Karen Horn, a lobbyist for the league wrote in a letter to lawmakers this week.

The league is also asking the legislation to include a requirement for the state to borrow money to replace the funds towns may not have on hand to pay the education fund.

Sen. Ann Cummings, D-Washington, who chairs the Senate Finance Committee, said on Thursday that she had concerns about “giving towns blanket authority to reduce interest and penalties.”

She said she was open to towns abating individual residents’ property tax burdens, but giving the towns the authority to categorically push back deadlines could mean a lot less revenue for the education fund.

“I think if they do it on an individual basis, it’s fine. But if they do it on a townwide, ‘We’re just going to postpone’, that means some people who can pay, won’t pay. And we need to make sure we’re getting as much money in here as we can,” Cummings said.

The outlook for the education fund already looks bleak. Analysts predict it will face a deficit of at least $40 million by the end of the fiscal year, because other tax deadlines have been delayed and consumption tax revenues have plummeted.

But White said that towns aren’t going to make changes to their property tax requirements “in a vacuum” and may not all vote to move their deadlines.

“They’re going to do this in relation to their payment to the state … some towns have more of a reserve and some towns might be out straight already,” she said.

“But I think we can just trust them to make that decision for themselves.”

WASHINGTON

A New Amazon Tax Is Coming to a Council Committee Near You

The Seattle City Council is going to consider a new business tax to raise progressive revenue! Today, the council only voted on which committee to refer the legislation to. That decision took almost an hour. There was finger-pointing and bristling and no one has even talked about what's in the legislation yet.

We're in for a wild ride, folks.

To back up: It's been about two years since the notorious employee hours tax, or head tax, was passed and then quickly repealed by the Seattle City Council. A new business tax—this time a tax on Seattle businesses with more than $7 million in annual payroll—has been proposed by Councilmembers Tammy Morales and Kshama Sawant.

The Tax Amazon legislation, as Sawant and Morales have called it, is a package of three bills introduced to the council today.

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The legislation would put a 1.3 percent tax on the payroll of the 800 biggest Seattle businesses and, in doing so, raise around $500 million. In an effort to alleviate some of the COVID-19 pandemic's impact on Seattleites, the money from a tax for the remainder of this year—at this point around $200 million—would give 100,000 Seattle households $500 once a month for four months. In 2021, the full $500 million will be used to build social housing and to help buildings follow tenets of the Seattle Green New Deal.

But first, the council had to decide which council committee the legislation would be referred to.

Legislation has to be voted on and passed in a committee before it is heard and voted on in a full council meeting. Sawant wanted the legislation to be referred to the Sustainability & Renters' Rights committee that she chairs and Morales co-chairs. Sawant wanted her committee in charge "to allow the [Tax Amazon] movement to have a voice."

Other councilmembers were not too keen on this. There are only five members in Sawant's committee and she and Morales would make up two out of five of the votes.

Last week, Council President Lorena Gonzalez had already told Sawant no, she wouldn't be allowed to have the legislation heard in her committee. Instead, Gonzalez decided to refer Sawant's and Morales' "revenue legislation" to the Select Budget Committee chaired by Councilmember Teresa Mosqueda.

"The Select Budget Committee includes all nine councilmembers," Gonzalez told The Stranger in an email, "and by previous unanimous consent of this Council, is approved to hear all legislation pertaining to revenue generation and the City's budget."

Gonzalez continued: "This legislation is, at its core, a revenue bill that is appropriately considered by the committee responsible for City finances."

Sawant still tried to get the legislation sent to her own committee. That motion failed. A motion by Morales to get the legislation sent to the budget committee passed unanimously.

"I’m sort of bristling," Councilmember Lisa Herbold commented, "at the idea that the only way we’ll pass a strong progressive revenue bill is if it’s in the committee of Councilmember Sawant. This is promoting the idea of a divided council." She didn't think that it was helpful, particularly in the midst of a crisis, to promote that picture of how the council does its business.

As expected, Sawant bit back. First, she clarified that the reason she wanted the tax to be heard in her committee was because of how the council flip-flopped on the head tax back in 2018.

"Many council members voted to repeal the Amazon Tax in 2018 and that was done by 7 of 9 councilmembers," Sawant said. She then named names. "Councilmember Herbold you were part of that; Council President Gonzalez you were part of that."

Sawant continued: "While I welcome your positive words now I think it’s very clear why the Amazon Tax should be heard in my committee. You all have a historic opportunity to show that the council is not divided."

In addition to those arguments, tax-averse Councilmember Alex Pedersen wanted to point out that just because he was voting for the legislation to be heard in the budget committee doesn't mean he supports the idea. He expects the legislation to bring up lots of "hearty questions," he said.

So, a business tax will make its way in front of the Select Budget Committee sometime in the future. The earliest it can be heard will be next week since, due to COVID-19, regular council committee meetings have been suspended. Special committee meetings can be called, but the council is trying to only do those on Wednesdays.

If the legislation fails, Sawant and Morales have also planned to introduce a Tax Amazon ballot measure.