Board of Equalization adopts audits and escape assessments for telecommunications and utility firms; sets appeals timelines

The California State Board of Equalization on March 26 adopted two state‑assessed property audits and approved a set of unitary land escaped assessments for investor‑owned utilities and a wireless carrier, actions staff said follow statutory audit and escaped‑assessment processes and leave taxpayers avenues for appeal.

Chief of the State Assessed Properties Division Jack McCool asked the Board to adopt audit adjustments for Extenet Systems California LLC and Vero Fiber Networks LLC. "I ask for your adoption of the audit for Extenet Systems California, LLC," McCool told the Board before members moved and voted. The Board approved both audits by roll call, with Chairman Gaines, Vice Chair Lieber, Member Vasquez, Member Schaffer and Controller Cohen voting aye on each item.

Nut graf: The actions change assessed values for corporations whose property is primarily valued at the state level. McCool told the Board audited companies were given 30 days to provide additional information and, after adoption, the assessee receives official notice and 50 days to appeal — a timetable the Board reiterated during discussion.

Why it matters: State‑assessed property audits and escaped assessments shift tax responsibility among jurisdictions. Board staff explained the procedural safeguards — notice, a review period, and an appeal window — that protect taxpayers and local governments while ensuring tax rolls reflect reported changes.

What the Board approved - Extenet Systems California, LLC (audit): motion to adopt audit adjustment — moved by Member Vasquez, seconded by Vice Chair Lieber. Roll call: Gaines, Lieber, Vasquez, Schaffer, Cohen — all Aye. Adopted. The staff summary noted the assessee provided additional information during the 30‑day review and staff adjusted the initial findings before the Board vote. - Vero Fiber Networks, LLC (audit): motion to adopt audit adjustment — moved by Member Vasquez, seconded by Member Schaffer. Roll call: Gaines, Lieber, Vasquez, Schaffer, Cohen — all Aye. Adopted. - Pacific Gas and Electric Company (unitary land escaped assessments): staff presented escaped assessments for three parcels (El Dorado, Plumas and Santa Barbara counties); PG&E provided additional information during the 30‑day review and staff revised several parcels before coming to the Board. Motion to approve by Member Schaffer, seconded by Vice Chair Lieber; roll call: Gaines, Lieber, Vasquez, Schaffer, Cohen — all Aye. Adopted. Each assessee will have 50 days after adoption to file an appeal. - Southern California Edison Company (unitary land escaped assessments): two parcels in Los Angeles County. Motion to approve by Member Vasquez, seconded by Member Schaffer; roll call: Gaines, Lieber, Vasquez, Schaffer, Cohen — all Aye. Adopted. - Selco Partnership (doing business as Verizon Wireless) (unitary land escaped assessments): three parcels (Calaveras, Mariposa, San Diego counties). Motion to approve by Member Vasquez, seconded by Vice Chair Lieber; roll call: Gaines, Lieber, Vasquez, Schaffer, Cohen — all Aye. Adopted.

Board and staff context: McCool described the legal bases the State Assessed Properties Division uses in audits (Revenue and Taxation Code Section 828 and Government Code Section 15618 were cited during the staff presentation) and for escaped assessments (Revenue and Taxation Code Section 758). He also noted the process: assessors/staff notify assessees, provide a 30‑day review window, make adjustments if new information is supplied, and then, after Board adoption, furnish official notice with a 50‑day appeal window.

Quote: "Audits also include an internal review of the methods, calculations, and assumptions used by the State Assessed Properties Division," Jack McCool said while presenting the two state‑assessed audits.

What didn't change: Board members repeatedly emphasized that adoption of staff adjustments does not remove a taxpayer's right to appeal; staff and members described the 50‑day appeal window that follows adoption as a standard protection.

Ending: The Board moved through these constitutional duties — audits and escaped assessments — with unanimous votes. Staff said unitary valuations will continue into May, and taxpayers notified of changes can seek administrative or judicial review as statute permits.