The California State Board of Equalization unanimously adopted the $146.1 billion in state-assessed property values of 336 companies within California, which include telephone, gas and electric companies, independent power producers, regulated railroads and intercounty pipelines. In the upcoming fiscal year, schools and local communities statewide will receive a total of approximately $2.35 billion in property tax revenue resulting from the BOE fulfilling one of its core constitutional functions.
“Every year, the BOE sets and adopts property values directly assessed by the state,” said BOE Chair Antonio Vazquez. “As a result, the critical tax dollars generated will continue to fund schools and local communities across California.”
Whereas most property in California is assessed by county assessors, the BOE is constitutionally assigned to directly assess certain public utilities, regulated railroads, and intercounty pipelines throughout the state. Also, these properties are not subject to Proposition 13, and the BOE must annually determine the fair market value of the unitary property, which includes improvements, personal property, and land. The BOE develops the fair market value by considering market conditions, income generated by the property, replacement costs, investments in the property, regulatory climate, depreciation, and other factors as of the Jan. 1 lien date.
For fiscal year 2023-24, there was a 7.2 percent increase in the total value from last year in the amount of $9.8 billion, generating approximately more than $158 million additional tax dollars. County governments will use the values set by the BOE to levy local property taxes.