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Staff estimate up to $52.1 million of exempt value could become taxable; projected future‑year tax shift ≈ $811,000
Summary
Using its sample of reviewed cases, the assessor’s division estimated roughly $52.1 million in currently exempt value could be taxable upon review, producing an estimated future‑year tax burden shift of about $811,000 (not new revenue) under a district 3 mill rate.
During the presentation staff shared sample‑based fiscal projections about potential tax base changes if certain exemptions are found ineligible. The slide quoted in the meeting said: “Based on empirical review results to date, the division estimates that approximately $52,100,000 in exempt value may be potentially taxable, resulting in an estimated future year tax burden shift of approximately $811,000 using the district 3 mill rate.”
Presenters clarified this is a forward‑looking projection based on the limited sample the division has completed, not an estimate of money they could collect for prior years. As the assessor noted, pursuing arrears is a “completely different question” with additional legal and administrative challenges; staff said realistic recovery in arrears would be small (they estimated at best about one‑quarter of such amounts might be collectible in arrears in optimistic scenarios).
Assembly members pressed staff on whether the administrative cost of pursuing small shifts justifies the work. Staff replied the reviews are also a statutory and record‑keeping obligation and that correcting exemption records improves transparency and fairness in how the tax cap is allocated among taxpayers.
The presentation emphasized that correcting exemptions represents a redistribution of the existing tax burden (a tax cap allocation effect) rather than new money for the municipality.
