How the proposed
”
solution
”
for recovering $6 million in property tax the school district
failed to collect makes any sense at all baffles the mind.
GUSD’s honest mistake should be corrected as soon as possible
How the proposed “solution” for recovering $6 million in property tax the school district failed to collect makes any sense at all baffles the mind.
A clerical error – not filing the proper paperwork with the Santa Clara County Office of Education – led to a Gilroy school tax being left off the last property tax bill.
A resident noticed it, called the district and Gilroy Unified School District Trustees promptly and correctly voted to ask the Santa Clara County Supervisors to direct the tax collector to issue a corrected tax bill sooner rather than later.
Then the lawyers got involved.
Now, for some inadequately explained reason, the “better solution” is for County Supervisor Don Gage and company to loan GUSD Superintendent Debbie Flores and company the money to make up the tax shortfall. This would allow GUSD to pay its $5.3 million bond obligation due this September, and then the tax collector, presumably by order from county supervisors, would issue a doubled up tax on the next property tax bill.
$100,000 cost estimate to send a new bill is outrageous, but …
What on earth is going on? It seems incredibly overcomplicated. Perhaps it’s a textbook case of public officials listening to the all-knowing, all-seeing attorneys rather than relying on their own good common sense.
Why can’t supervisors pass the resolution to direct the tax collector to issue a corrected tax bill? Certainly our own Don Gage would carry the banner for Gilroy schools?
The school district should pick up the estimated $100,000 cost (outrageous as it is) for putting together the bill and sending it out. And it should have been done weeks ago.
If it’s a fear-of-getting-sued issue, that makes no sense whatsoever. Isn’t waiting a year to issue a double tax just as likely to spark a taxpayer lawsuit against the county or school district? In fact, it seems more likely.
Waiting for a year likely to further complicate the tax issue
Consider:
– Property will be bought and sold. Who’s responsible for the 2008 Measure J school district property tax? The new owner who hadn’t yet purchased the property?
– What happens with the thousands of impound accounts which hold taxes. Those accounts are based on the prior year’s tax bill so there won’t be enough money to pay the tax bill after refunds, in accordance with the law, are issued this year.
– What about lowered assessments? As property values decrease, the amount collected will be less. That’s a potential complicated mess for County Assessor Larry Stone and the tax collector. Both are likely to face howling protests when the double tax bill hits.
The longer this goes on and the more drawn out it is, the more potential there is for lawsuits, trouble and misunderstanding.
GUSD Trustees should reconsider.
It’s hard to imagine supervisors wouldn’t support a resolution that means so much to the school district and merely corrects a clerical oversight.
The obligation to pay the tax has always been there. Paying it now as a corrected tax bill soon after the mistake came to light makes sense. Waiting to take care of it later will only exacerbate the issue and may very well fall fatally into the realm of short-term gain, long-term pain.
