Board of Equalization adopts 2026 unitary values, overall rise of 2.3%; votes unanimous

The California State Board of Equalization on Wednesday adopted staff-recommended unitary values for 2026, recording an overall 2.3% increase from the previous year after adjusting for appeals. The action covers 374 state-assessed entities whose total unitary values will be allocated to counties for local property-tax billing.

Jack McCool, chief of the State Assessed Properties Division, told the board the increase was smaller than recent years and that the gas-and-electric industry remains the dominant share, accounting for about 76% of the total unitary value. "This year the gas and electric industry as a group increased by about 3% overall compared to last year," McCool said during his presentation.

Why it matters: The BOE’s unitary values are used by counties to prepare property tax rolls and bills. After adoption, staff will allocate each company’s total unitary value to counties (work expected to conclude by mid-June); the board will adopt the final role, including non‑unitary values and any adjustments, at its July meeting.

What the board voted on: The board took votes by industry group and on four specific entities where a member recused. Each industry vote approved staff recommendations. Key results included:

- Gas & electric industry (excluding three items flagged for recusal): motion moved by Member Vasquez, seconded by Member Schaefer; roll call vote recorded unanimous approval by participating members.

- Pipeline industry: adopted after discussion about wildfire risk adjustments and ongoing regulatory changes related to SB 254 and AB 1054.

- Railroad industry: adopted; staff discussed collection mechanisms for large penalties when an assessed company may no longer be operating; counties, not the BOE, handle tax collection and tax‑sale remedies.

- Electric generation industry: adopted; staff said declines for some generation assets were tied to contracting terms that reduced expected future income streams.

- Telecommunications industry: adopted after questions about newly assessed VOIP entities and a small number of zero-value recommendations that can still carry statutory penalties; staff noted the addition of 61 VOIP entities this year.

Board members asked technical and procedural questions during the presentation and votes. Vice Chair Gaines announced he would not participate in votes for four specific entities (Pacific Corp.; Sierra Pacific Power Company; Kern River Gas Transmission Company; BNSF Railway Company) because of financial interests; the remaining members voted on those items and approved the staff recommendations.

Staff note and next steps: McCool emphasized that the staff-recommended values are confidential until formally adopted (citing Revenue & Taxation Code §833 and Government Code §15619). SAPD will mail notices of unitary value to assessess with instructions on how to appeal. Allocation to counties is planned for mid-June, and the final role (including non-unitary values) will be presented for adoption in July.

The board recessed for a lunch break and planned to reconvene at 1:00 p.m.