City hears detailed property‑tax and sales‑tax outlook ahead of budget; consultants flag lag, pools and online sales

City of Milpitas staff and outside consultants presented a detailed briefing on property tax and sales‑tax revenues at the April 1 council meeting, offering context and forecasts staff said will feed into the upcoming budget.

Finance Director Luz Caffrese Howe introduced presenters from HDL Companies. Paula Cohn (HDL) reviewed property tax mechanics and trends; Tracy Vesely (HDL) presented sales‑ and transaction/use‑tax results and forecasts.

Paula Cohn outlined how property values are enrolled and taxed in California, emphasizing calendar and administrative timing: the lien date is Jan. 1; assessors use sales and events from the previous calendar year to build the roll; auditors extend and finalize the roll in June–August, and tax collections are allocated to jurisdictions on a schedule that creates a roughly 18–20 month lag between market events and city receipts. “By the time we get to the last payments being made to the city in July of 2025, we are 19 months down the road from the data that was used to develop this roll,” she said, explaining why recent construction or sales may not appear…