Farm Bureau Policies 2022
No. 703 Restoration
Weurge that theStateConstitutionbeamended to reflect that all improvements including, but not limited to, barns, sheds, pumps, motors, irrigation and filtration systems, shall be valued on a de- preciated basis. We urge that the Revenue and Tax Code be amended to place the burden of proof to establish the correctness of assessment upon the assessor. We recommend that the Legislature cause a study to be made of the operation of the division of intercounty equalization of the state Board of Equalization for the purpose of determining the va- lidity of the intercounty equalization procedure presently utilized. The responsibility of hearing appeals fromcounties relative to the Board of Equalization determined assessment ratio for that county having to dowith intercounty equalization should not rest with the Boardof Equalizationbut shouldbe the responsibility of a separate uninvolved agency. M. Taxpayer Appeal fromAssessments We recommend that the Legislature broaden the scope of judi- cial reviewof taxpayers’ assessment appeals by providing the right to a trial de novo in the Superior Court in resolving issues of fact suchasdetermining the truecashvalueof propertybeingassessed. We recommend that theprovisions of theRevenueandTaxation Code relating to assessment appeals be amended to permit the introduction of all testimony and evidence germane to the value of the property, to include the record of appraisal procedures and assessed value findings for prior years. Members of local assessment appeals boards should be re- quired to take aproperty tax valuation course offeredby theBoard of Equalization. N. Timber Taxation Non-industrial timberlandownerswhensellingtimber toanother partyshouldhave theoptionofpaying theyieldtaxbasedonthehar- vestvaluescheduleorontheamountactuallyreceivedfor thetimber. Timberlandvalues for taxpurposes shouldremainat sucha level soas tomaintainthecontinuedproductionandharvestingof timber. O. Utility User Taxes Weoppose theuseof utilityuser taxes to fund local government without a vote of those affected. P. Funding County Government The legislature should complywith its statutory commitments to county governments and fully fund theWilliamsonAct Subvention, TrialCourtFunding,andtheCountyRevenueStabilizationprograms. Q. Environmental Fines Fines collected by governmental agencies for violation of en- vironmental laws should be used only for the remediation of the cause of and direct effects of the cited violation. These fines may not be used to fund agency operations including the payment for staffing that agency. (Rev. 2022) No. 702 Program Fees and Special Assessments User fees and other service program fees as well as environ- mental programfees, hereinafter collectively called programfees, or assessments should not be substituted for taxes, and should be limited to the amount necessary to provide the service or com- modity furnished. These feesor assessments shouldbeused for the purpose for which they were levied. In the case of environmental program fees, the amount should be based on the direct cost of processing the programenrollment application or renewal. Unless initiated or supported by those directly affected, we are opposed to any user fees imposed by government agencies in lieu of, or inaddition to, tax revenues to support programregulations or enforcement. These fees represent taxationwithout representation and are detrimental to the economy. Services historically paid for through general fund revenue should not be switched to program fee funding without specific authorization by the affected voters. We are opposed to any changes in laws authorizing benefit changes/assessments or program fees that: (1) Diminish voters’ rights of protest/referendum; (2) Diminish existing limitations on charges/assessments/ fees; and (3)Diminishexisting exclusions for charges/assessments/fees. Any governmental agency authorized to imposebenefit assess- ments, program fees or taxes should be directed by a governing bodywhosemembersareelecteddirectly to that officeby thevoters in theaffectedarea. Adequatenotice shouldbeprovidedwhenany newor increased fee or benefit assessment is proposed. The governmental agency should be required to semi-annually classifyallparcelssubjecttocharges/assessmentsaccordingtouseand toadopt,byordinanceorotherappropriate“LegislativeAct,”asched- uleof benefitsandassessments/charge, basedon theclassification. All levels of government which conduct operations financed primarilyby charges or fees for servicesprovided thepublic should be required toestablishenterprise fundaccountingprocedures for those operations. (Rev. 2012)
affecting the property tax should require approval of two-thirds vote of the qualified voters voting. A reasonable limit shouldbeplacedon the total amount of such debts or commitments that may be imposed on any property in relationship to the value of the property. F. Power to Levy Property and Special Taxes The use of the power to levy ad valoremtaxes shouldbe limited for local government. Such power for state purposes should con- tinue to be constitutionally limited to serve the exclusive purpose of maintaining the state’s credit. We are opposed to a statewide property tax for education or for any other purpose, including the shift of property taxes from local agencies to offset state funding for education. We oppose any form of property taxation which results in a transfer of local revenues to other agencies. The imposition of parcel taxes should require a two-thirds vote of the electorate. If a parcel tax is assessed on a legal parcel and an inconsistency is found between the legal parcel and assessor’s parcel number, it should be the obligation of the local taxing juris- diction, rather than the landowner, to utilize the appropriate legal parcel identificationmechanism. Agricultural or timber produc- tion zonedproperty shouldbe exempt frompayingmore thanone parcel chargeas longas theparcels, whether contiguous or not, are
We support landowners’ efforts in restoration projects on private property. A completed restoration project promotes a healthy environment. Landowners who engage in restoration projects that benefit water quality, wildlife or the public should be eligible for a waiver of any and all fees from federal, state or any other governmental organization that has oversight on the restoration project. (2007) No. 704 Assured Funding of State-Mandated Programs No state-mandatedprograms shouldbe imposedon local agen- cies without complete and timely funding for the lifetime of the programbeing provided for in the legislation. Allstate-mandatedprograms, includingexistinglegislation,shallbe reviewedbytheStateLegislativeAnalysteverytwoyearstoassureade- quatestatefundingandthecontinuedappropriatenessoftheprogram, andtheAnalyst’sfindingsbemadeamatterofpublicrecord.(Rev.1998) No. 705 Rural Fire Protection Funding We support state and federal funding for rural fire protection districts inorder tomaintainadequate standards of safety training and performance. We urge government agencies, when developing regulatory mandates, to recognize that in many cases rural volunteer fire protection districts have different needs than do urban fire de- partments. Furthermore, there is a great contrast in financial and personnel resources available to urban fire departments versus rural fire districts. When these differences are not addressed, severe strain on resources occur at the rural level. Government mandates shouldnot apply to rural volunteer firedistrictswithout the support and financial backing from themandating agencies. Except inthecaseof grossnegligence, theCaliforniaDepartment of Forestry (CDF) should not pursue fire suppression costs from private landowners\tenants\operators. (Rev. 2003) No. 706 Income Tax Liability Changes in the state and federal tax code should be enacted to provide relief for those taxpayers whose tax liability exceeds the amountof theirassetsbecauseof foreclosureorvoluntaryreconvey- ance. (Rev. 1989) No. 707 State Personal and Corporate Income Taxes Wherepossible, we favor amendment of theCaliforniaRevenue and Taxation Code to provide full conformity with the Internal Revenue Code, including without limitation to the provisions of Section 172 of the Internal Revenue Code providing for net oper- ating loss carryovers, the provisions of Section 179 of the Internal Revenue Code providing for expensing of qualifying capital ex- penses, and the provisions of the Internal Revenue Code affecting the taxation of sub-chapter S corporations. Propertyownersaffectedbyeminentdomainshouldbegiventhe optionof replacingthecondemnedpropertyor reportingthetaxable gainover a periodof years as inan installment sale procedure. California’s income tax system should include an automatic adjustment (indexing) procedure to compensate for inflation. The California income tax reporting procedure should be sim- plified to themaximumextent practical. (Rev. 2019) No. 708 Fuel Tax Reporting Procedures for reporting state gasoline and diesel fuel taxes shouldbemade part of the state income tax formas is done on the federal income tax form. Foresters (owners, lessees and custom foresters) involved in growing andharvesting timber should receive the samediesel fuel tax exemption at the point-of-purchase as other agriculturalists currently receive. (Rev. 1995) No. 709 Estate and Gift Taxes We support permanent repeal of the federal estate tax. Until permanent repeal canbe achieved, we support thehighest exemptionand lowest tax ratepossible,whileexcluding thevalueof agricultural real andpersonalproperty fromthevalueof thegrosses- tate, providedthereal andpersonal property remains inagricultural use. Topreventnon-agricultural interests fromusing theexemption as a tax haven, we support a requirement thatmore than50%of the estateconsistof agricultural real andpersonal property, andthat the decedentmateriallyparticipatedintheoperation.Establishinga full, unlimitedstepped-upbasis, at the timeof death, shouldhaveahigh priority as changes to the estate tax code are proposed.
under the same ownership. G. Property Tax Limitation
To themaximumextent possible, property taxes should only be usedtoprovidegovernmentalservicestoproperty.Othergovernment spendingprograms shouldbe financedbynet incomeor sales taxes. Consumption taxes are preferable to increases in income or property taxes. We oppose any legislation and/or election that would increase property taxes on agricultural land over the one percent limit in- curred by Proposition 13 unless approved by a two-thirds vote of the electorate. We support protectionof the intent and integrity of Proposition 13 for all individuals, residents, and businesses. Weoppose any suchpolicies, includingbut not limited to “split- roll” andamendments intended to increase the frequency of reas- sessment events. H. Local Sales Taxes Local sales tax leviespresently fail to recognize that a shareof the revenues derived is properly related to theplacewhere the taxable property is to be used or the place of the purchaser’s residency. A modification of the apportionment procedure should be made to provide for a more equitable distribution of local sales tax revenues. We oppose any legislation and/or election that would increase local sales and use or transaction and use taxes for specific pur- poses unless approved by a two-thirds vote of the electorate or the Legislature. We oppose the application of sales tax on services or intan- gible goods. I. Property Tax Relief Experience has demonstrated that increased subventions from the state to local units of government aremore likely to be used to expand programs than to reduce property taxes. We believe that meaningful property tax relief can be achieved by a recognition of the various levels of government that specific functions and services are properly an exclusive responsibility of an appropriate governmental entity. We urge an ongoing program of analysis of the capabilities of the various agencies of government and the needs of the people they serve. J. Corporate Taxation We oppose the imposition of double income taxes on the re- tained earnings of C Corporations and the dividends distributed to shareholders. K. Joint Powers Agencies A joint powers agency shouldbeprohibitedby law fromissuing revenue bonds connected with profit seeking activities which are not normally considered a function of government, without ap- proval by the electorate of the component entities. The authority of joint powers agencies to issue revenue bonds should be authorized only in those instances where the direct net income from the facility can reasonably be expected to retire the bonds and pay the interest. A joint powers agency shouldbeprohibitedby law fromissuing revenue bonds for any purpose where any of the parties to a joint powers agreement areprecluded fromindividually issuing revenue
bonds for the same purpose. L. Assessment Practices
Sales used by assessors in valuing property for ad valorem tax purposes often do not represent the sale of comparable property for comparable uses, and the sales of comparable property are many times utilizedwithout regard for the rateof absorptionor the market demand for like properties.
38 Ag Alert January 26, 2022
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