Board of Equalization adopts audits, escaped-assessments and backs two veterans tax bills

The California Board of Equalization on March 26 adopted a package of state-assessed property audits and unitary land "escaped" assessments and voted to support two Senate bills that would expand property tax relief for disabled veterans.

The board approved audit adjustments for Extenet Systems California LLC and Vero Fiber Networks LLC after staff said both companies had been given draft reports and an opportunity to provide additional documentation. Jack McCool, chief of the State Assessed Properties Division, told the board the division "performs routine audits of state assesses under the authority of California Revenue and Taxation Code Section 828 and Government Code Section 15618" and that assessees are given time to respond before values are finalized.

The board also adopted unitary land escaped assessments for large utilities after staff reported parcels had been reported late. Richard Moon, chief counsel, explained a disclosure question raised by a member: because the items are nonadjudicatory the usual contribution-disclosure restrictions do not apply.

Members then returned to several board-member items, including approval of the board’s February 19 minutes and a one-date change to the 2025 meeting calendar. The board voted to adopt a report summarizing an earlier informational hearing on wildfire disaster relief and recovery; members discussed whether informational hearings should routinely produce a report and asked staff to agendize governance guidance on that practice.

Later in the meeting the board heard presentations from two state senators and voted to support two bills affecting disabled veterans’ property tax exemptions. Senator Bob Archuleta described Senate Constitutional Amendment 4 and related bills as measures to allow use of the homeowners’ exemption together with the veterans’ exemption and to exempt 100% service‑connected disabled veterans from property tax. Archuleta said, "Senate Bill 296 completely exempts disabled veterans from property tax." Senator (listed in the record as) Sciarto asked the board to exclude VA disability payments from the household-income calculation used to determine eligibility for a low‑income disabled‑veteran exemption for property tax; his statement summarized the bill’s purpose: to prevent disability compensation from pushing veterans over income thresholds.

Votes at a glance

- Item 2: Audit — Extenet Systems California LLC (adopt audit adjustments). Moved: Member Vasquez; Second: Vice Chair Lieber. Vote: Gaines Aye; Lieber Aye; Vasquez Aye; Schaffer Aye; Controller Cohen Aye. Outcome: approved.

- Item 3: Audit — Vero Fiber Networks LLC (adopt audit adjustments). Moved: Member Vasquez; Second: Vice Chair Lieber. Vote: Gaines Aye; Lieber Aye; Vasquez Aye; Schaffer Aye; Controller Cohen Aye. Outcome: approved.

- Item 4: Unitary land escaped assessments — Pacific Gas & Electric Company (three parcels). Moved: Member Schaffer; Second: Vice Chair Lieber. Vote: Gaines Aye; Lieber Aye; Vasquez Aye; Schaffer Aye; Controller Cohen Aye. Outcome: approved.

- Item 5: Unitary land escaped assessments — Southern California Edison Company (two parcels in Los Angeles County). Moved: Member Vasquez; Second: Member Schaffer. Vote: Gaines Aye; Lieber Aye; Vasquez Aye; Schaffer Aye; Controller Cohen Aye. Outcome: approved.

- Item 6: Unitary land escaped assessments — Selco Partnership (Verizon Wireless) (three parcels). Moved: Member Vasquez; Second: Vice Chair Lieber. Vote: Gaines Aye; Lieber Aye; Vasquez Aye; Schaffer Aye; Controller Cohen Aye. Outcome: approved.

- Item 7: Consent — Approve minutes, 02/19/2025. Moved: Member Schaffer; Second: Vice Chair Lieber. Vote: Gaines Aye; Lieber Aye; Vasquez Aye; Schaffer Aye; Deputy Controller (record) Aye. Outcome: approved.

- Item 8: Board calendar change — move July 23, 2025 meeting to July 29, 2025. Moved: Member Vasquez; Second: Vice Chair Lieber. Vote: Gaines Aye; Lieber Aye; Vasquez Aye; Schaffer No; Deputy Controller (record) Aye. Outcome: approved.

- Item 9: Informational hearing report — "2025 Wildfire Disaster Relief and Recovery" summary report (member-sponsored informational hearing report). Moved: Member Vasquez; Second: Vice Chair Lieber. Vote: Gaines Aye; Lieber Aye; Vasquez Aye; Schaffer Aye; Deputy Controller (record) Abstain. Outcome: approved.

- Item 12: Board position — support Senate Bill 296 (Archuleta) regarding expanded veterans’ exemptions. Moved: Member Vasquez; Second: Vice Chair Lieber. Vote: Gaines Aye; Lieber Aye; Vasquez Aye; Schaffer Aye; Deputy Controller (record) Abstain. Outcome: board will support SB 296.

- Item 13: Board position — support Senate Bill 56 (Sciarto) to exclude military disability compensation from household‑income calculations for the low‑income disabled‑veteran property tax exemption. Moved: Member Vasquez; Second: Vice Chair Lieber. Vote: Gaines Aye; Lieber Aye; Vasquez Aye; Schaffer Aye; Deputy Controller (record) Abstain. Outcome: board will support SB 56.

Why this matters

Audits and escaped assessments update local rolls or correct state-assessed values that feed into local property-tax rolls and subsequent revenues. The board’s support for the two veterans bills signals formal BOE backing for changes that could reduce assessed‑value taxation for particular homeowner populations; staff told the board the board’s analysis estimates a statewide property‑tax revenue shift on the order of the tens of millions of dollars if one of the proposed changes is enacted.

What’s next

Assessees who receive an adopted audit or escaped assessment will receive official notice and may appeal within the statutorily required appeal windows. The two bills will proceed through the Legislature; one (SCA 4 / SB 623 family) involves a constitutional amendment route and would require voter action if it advances. The board asked staff to return to the membership with proposed governance guidance about whether informational hearings should routinely produce a report or minutes.