Board authorizes start of $10M+ tax roll correction process after winery audit

The Napa County Board of Supervisors on May 20 authorized the auditor-controller to begin processing roll corrections after an assessor’s audit identified more than $10 million in unreported business property at a large winery.

Assessor John Tudor told the board the case involves business equipment — primarily tanks — that were reported or processed incorrectly after the county moved from paper to electronic filings. “In my 39th year, this is the largest one we’ve brought to you,” Tudor said, adding, “my job is to locate and value all property in Napa County.” He described the board’s vote as the start of a process, not a final determination.

Tudor and staff said the item stems from the assessor’s legally required audit program, which examines business property reporting and can go back four years. County staff said the winery’s chief financial officer has been in active contact with the assessor’s office and that the firm’s fixed-asset accountant was on site the week of the meeting to review audit findings.

The board’s authorization triggers mailing of a corrected tax bill. Tudor explained that after the bill is mailed, the property owner has 60 days from the date the tax bill is mailed to file an application for change or appeal to the Assessment Appeals Board. Tudor said he did not expect an appeal because of ongoing communication, but he described the board action as “authoriz[ing] the beginning of a process.”

Board members pressed staff on audit procedures and safeguards. Tudor said the assessor’s office is required to audit four years by law and that some audits produce refunds while others produce additional assessments. He noted roughly half of the office’s audits result in refunds. Supervisor questions also covered how large audits are selected and how the office handles errors arising from changes in reporting formats.

Supervisor discussion emphasized transparency and outreach to the property owner. Supervisor O’Lascio described conversations she had arranged between county staff and the winery’s CFO and said both sides were “in a good space and in a good understanding.” The board then voted, with the motion carried unanimously.

County staff said the audit’s figures reflect assessed value (not tax amounts) and that penalties in the case include a single-year 10% penalty for failure to file for one audited year. Staff also noted the assessed amounts will be refined during follow-up communications with the property owner and, if necessary, through the Assessment Appeals Board process.

The board’s action was limited to authorizing the auditor-controller to process the assessed changes and to start the formal notification and billing process. Any subsequent appeals or adjustments would follow the county’s normal review procedures.

Votes and next steps: supervisors moved and seconded the authorization and voted unanimously to proceed. County staff will mail corrected bills, continue direct communication with the winery’s finance staff and accept any timely appeals to the Assessment Appeals Board.

Ending: The assessor reiterated that the board’s vote begins an administrative process; it does not itself finalize assessed values. The county expects additional communication with the winery over the coming weeks before any appeal window would open.