Use Value Tax Revalidation Update




Update on the Revalidation Process for properties in the Use Value Tax Program




Messrs. Tucker, Foley, Davis, Wiggans and Willingham and Ms. Catlin






September 2, 2009


ACTION:                INFORMATION:   X



  ACTION:              INFORMATION:   











On October 1, 2008, the Board adopted an ordinance to require biennial revalidation of properties in the Use Value Tax Program.  On April 17, 2009, a work session with the Board was held to further discuss the revalidation requirement, including the form and process.


The purpose of this Executive Summary is to provide the Board with an update on the status of the revalidation process.  It includes a discussion on the current status of the submission of forms, a review of both completed and planned/proposed communication efforts, and a discussion of key milestones in the next several months of the program.




Objective 4.2:  By June 30, 2010, increase the protection of the County’s rural areas by implementing the key strategies of the Rural Area Plan.





Current Status of Forms Submission:


In June, 2009, the County sent a revalidation form along with information concerning the revalidation process to the owners of approximately 5,000 parcels in the Use Value Tax Program.  The owners were informed that:


- The filing deadline for the forms without penalty was September 1, 2009.

- Forms submitted from September 2, 2009 through December 5, 2009 were subject to a late filing fee of $125 per parcel.

- Failure to complete and file the form by the deadline(s) would cause the property to be removed from the Program and could result in the assessment of roll back taxes.  


As of August 18, 2009, the owners of approximately 3,000 parcels have submitted the revalidation forms.  At the Board Meeting on September 2, 2009, staff will provide the Board with an updated number.


Public Communication Efforts:


Attachment A provides detailed information on staff’s public communication activities to date and those planned or proposed for the future.  As the Attachment indicates, the County has provided an extensive amount of information to the public and has been available on numerous occasions to answer questions and assist in the completion of the revalidation forms.  In addition, staff will send certified letters to owners who have not filed the form by the September 1, 2009 deadline, informing them of the late filing deadline and the ramifications of not filing the form.  These efforts will remain on-going past the September 1 deadline, understanding the potentially significant impact of being removed from the program after the December 5 deadline.


Key Milestones:


Attachment B provides detailed information on the key dates and milestones over the next several months of the revalidation process.  As discussed above and indicated in Attachment B, owners who do not file their revalidation forms by December 5, 2009 will be removed from the Use Value Tax Program.  Their property will be assessed and taxed on its full market value in 2010, and if the use of the property has changed to a non-qualifying use, it will be subject to roll back taxes and interest at full market value for the current tax year (2009) and five previous years (2004 through 2008).  The roll back taxes and interest will be billed in 2010 following calculations by staff of the amounts.




As noted above, owners filing revalidation forms between September 2, 2009 and December 5, 2009 will be subject to a late filing fee of $125 per parcel.  Assuming all owners who have not filed by September 1, 2009 submit forms by December 5, 2009, late fees of approximately $250,000 will be collected.  The actual number of parcels subject to a late filing fee and the number of parcels that have changed to a non-qualifying use and will be subject to roll back taxes and interest is unknown at this time.




The Executive Summary is intended to provide the Board with an update on the status of the Revalidation Process and is for information only.  Staff welcomes suggestions from the Board on additional opportunities to provide public information.




A – Revalidation Public Communication Activities

B – Future Dates and Milestones
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