Board of Equalization adopts escaped land assessments and audit value changes; all motions pass unanimously

The State Board of Equalization voted unanimously on March 25, 2026, to adopt a series of escaped land assessments for utility companies and to approve audit-based valuation changes for several state‑assessed entities.

Board staff presented the items as part of the agency’s constitutional duty to ensure the property tax roll accurately reflects reportable property and values. Pam Denopoli, manager in the state assessed properties division, asked the board to adopt escaped­assessment findings for DCR Transmission LLC (two parcels in Riverside County), Pacific Gas and Electric Company (one parcel in Santa Clara County), Pacific Bell Telephone Company (three parcels in Humboldt, Placer and Yuba counties) and Mendocino Railway (one parcel in Mendocino County). “I am here this morning to present land escaped assessments for the board’s consideration,” Denopoli said.

Separately, Michelle Cruz, manager of the unitary section, presented four audit items that resulted in valuation changes covered under the board’s audit authority. Cruz summarized the audit process and confidentiality limits around audit materials: “The state assessed property division performs routine audits of state assesses under the authority of Revenue and Taxation Code section 828 and Government Code section 15618,” she said.

Jack McCool, chief of the state assessed properties division, answered members’ questions about statutory terminology for a line item in one audit: “It is an assessment in lieu of interest. It’s not technically interest,” McCool said, explaining that the statute labels certain missing-roll amounts as an assessment in lieu of interest and that staff have no mechanism to abate that amount by board vote.

Votes at a glance

- Item 2 — DCR Transmission LLC: Motion to adopt escaped assessments (moved by Vice Chair Gaines; seconded by Member Vasquez). Roll call: Chair Lieber — Aye; Vice Chair Gaines — Aye; Member Vasquez — Aye; Member Schaeffer — Aye; Controller Cohen — Aye; Deputy Controller Amron — Aye. Outcome: adopted (unanimous). - Item 3 — Pacific Gas & Electric Co.: Adopt revised escaped assessment (moved by Member Vasquez; seconded by Vice Chair Gaines). Outcome: adopted (unanimous). - Item 4 — Pacific Bell Telephone Co.: Adopt escaped assessments (moved by Member Vasquez; seconded by Vice Chair Gaines). Outcome: adopted (unanimous). - Item 5 — Mendocino Railway: Adopt escaped assessment (moved by Member Vasquez; seconded by Vice Chair Gaines). Outcome: adopted (unanimous). - Item 6 — Alamitos Energy Center LLC audit: Approve audit value changes (moved by Member Vasquez; seconded by Vice Chair Gaines). Outcome: approved (unanimous). - Item 7 — Huntington Beach Energy LLC audit: Approve audit value changes (moved by Member Schaeffer; seconded by Vice Chair Gaines). Outcome: approved (unanimous). - Item 8 — China Telecom Americas Corporation audit: Approve audit value changes (moved by Member Vasquez; seconded by Vice Chair Gaines). Outcome: approved (unanimous). - Item 9 — Lightspeed Networks audit: Approve audit value changes (moved by Member Vasquez; seconded by Vice Chair Gaines). Outcome: approved (unanimous).

What the votes mean now

For escaped assessments and audit-driven value changes, the affected parties were provided notice and a 30‑day review window before the board hearing; after adoption they have a 50‑day statutory window to file an appeal, as staff noted. Staff also told the board that some assessments were revised following additional information submitted during the 30‑day period.

Why this matters

Adopting escaped assessments and audit findings ensures taxable values on the roll reflect property that state assesses failed to report or that audits show was misreported. Those items affect county rolls and may lead to adjustments in local allocations and future tax bills if appeals are unsuccessful.

What comes next

Affected assessees may file appeals within the statutory timeframes; staff will publish adopted determinations and proceed with required outreach and notice. The board’s next regular meeting is scheduled for April 22, 2026.