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I CI~
I From:
OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION
JAMES F. PENMAN
Subject:
MEASURE S QUESTIONS - REPORT
BY CITY ATTORNEY
Dept:
City Attorney
ORIGINAL
Date:
January 8, 1997
Synopsis of Previous Council action:
necessary documents
services.
June 17, 1996, City Attorney directed to prepare
for ballot measure for a Special Parcel Tax for police
December 10, 1996, Council adopted
to Special Tax for Police and Fire Protection.
MC-987 relating
November 18, 1996, Council adopted Resolution 96-352 submitting Police
and Fire Tax to voters on March 18, 1997.
Nomember 18, 1996, Council adopted Resolution 96-353 calling SFecial muni~i~
pal Election be March 18, 1997 and approving the wording of the ballot
measure.
Recommended motion:
None. Discussion item.
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Signature
Contact person:
JAMES F. PENMAN
Phone:
5255
Supporting data attached:
3 Memoranda
Ward:
FUNDING REOUIREMENTS:
Amount: -0-
Source: (Acct. No.)
(Acct. Description)
Finance:
Council Notes:
1/r!JJtl7
75-0262
Agenda Item No.2
STAFF REPORT
Council Meeting Date: JanUary 13. 1997
TO:
FROM:
DATE:
AGENDA
Mayor and Common Council
James F. Penman
January 8, 1997
MEASURE S QUESTIONS - REPORT BY CITY ATTORNEY
A number of questions have been asked about Measure S, the police and fire tax measure
to be decided by the voters on March 18, 1997. A great deal of misinformation has been
and is being disseminated on this issue as well.
Attached are responses to recent questions answered by the City Attorney's Office.
Additional information will be provided during the presentation on this agenda item.
Questions will also be entertained and either answered at this council meeting or the
questions will be researched and answered at the January 27, 1997 council meeting.
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CITY OF SAN BERNARDINO
OFFICE OF THE CITY ATTORNEY
INTEROFFICE MEMORANDUM
TO:
Eddie V. Negrete
Councilman, First Ward
FROM:
James F. Penman, City Attorney
DATE:
January 3, 1997
RE:
Response to your December 17 and 20.1996 Memorandum on Measure S
Copies:
Mayor Minor, Councilmembers, City Clerk, City Treasurer,
Acting City Administrator, Chief of Police, Fire Chief, Director
of Finance, Real Property Official
The attached memoranda to me from Senior Assistant City Attorney Huston T. Carlyle should
answer the questions posed in your above-referenced memoranda. I know these are not the answers
you necessarily want and it is not the ones we prefer to give. However, they are the correct legal
answers.
As with any exemptions, the property owner must file the appropriate application. Renters may also
apply for the renters' exemption. However, as Mr. Carlyle's memorandum states, "(h)ow the
landlord chooses to deal with that special tax, as with the regular property tax bill, is between the
landlord and the tenants."
Therefore, there is no way the city could establish a matrix as the amounts could differ from zero
dollars to the full amount of the tax based on what any given landlord works out with any given
tenant or tenants. This will always be the case. Therefore, there is nothing the city can do, either by
enacting a new ordinance, amending an existing one or changing the proposed tax in some other way.
Basic landlord /tenant principals apply as they do with every property tax.
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U~me~ F. Penman
City Attorney
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CITY OF SAN BERNARDINO
INTEROFFICE MEMORANDUM
TO: Jim Penman
City Attorney
FROM:
DATE:
December 18, 1996
RE:
Measure 5
The question has been asked concerning the taxing of our area golf courses
should Measure S pass. The City would impose the tax based upon the tax rates
contained in the four page Table I attached to the ordinance approved by the Common
Council which adds Chapter 3.65 to the San Bernardino Municipal Code subject to a
vote of the people on March 18, 1997.
All applicable and appropriate taxing information for purposes of applying the
special tax will be obtained from the County of San Bernardino, specifically the County
Assessor's Office. That office will provide the City with applicable exemption codes for
the 50,000+ parcels in the City, as well as the appraised values and the dollar benefit of
each exemption received. The information received from the County will be for property
tax bills and, where applicable and in lieu thereof, for possessory interest tax bills.
The percentage of benefit derived from the dollar amount of the
exemptions to the assessed value will be directly applied to the special tax and
will reduce it by that same percentage.
For example: If a residential piece of property is assessed at $70,000 and the
homeowner qualifies for and is receiving a homeowner's exemption worth $7,000, then
that homeowner is receiving an exemption benefit of 10% ($7,000 is 10% of $70,000).
In this scenario, the first year tax for a single family residence of $101.75 would be
reduced by 10%, or $10.18 so that the first year tax would instead be $91.57.
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If the residential piece of property is assessed at $140,000 and receives the
same amount of homeowner exemption, the benefit would not be 10%, but rather 5%
because $7,000 is 5% of $140,000. In such a case, the tax of 101.75 would be
reduced by $5.09 so that the first year tax would be $96.66.
The same analysis and calculations would apply to all parcels in the City,
including golf courses. The specific numbers and ultimate tax to be paid are
determined by the previously indicated information which is given to the City exclusively
by the County Assessor's Office.
Just to drive the point home at the risk of being redundant: If a piece of property
in the City is exempt from paying any property or possessory interest taxes, then it
would also be exempt from the special tax as well. In this case, the exemption benefit .
received would be 100%.
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CITY OF SAN BERNARDINO
INTEROFFICE MEMORANDUM
TO:
Jim Penman
City Attorney
FROM:
Huston T. Carlyle, Jr.
Sr. Assistant City Att
DATE:
January 2, 1997
RE:
Measure 5 - Exemptions
Several questions continue to be posited concerning whether or not certain
groups of people (low income, disabled, senior citizens) or types of real estate (golf
courses, mobile homes, churches) will be taxed if Measure S passes.
The only response which can be given is that if an individual or piece of property
is now receiving a tax bill which contains an exemption of some kind from the County of
San Bernardino, then the percentage of benefit derived from the dollar amount of
the exemption(s) to the assessed value will be directly applied to the special tax
and will reduce it by that same percentage.
All applicable and appropriate taxing information for purposes of applying the
special tax will be obtained from the County of San Bernardino, specifically the County
Assessor's Office. That office will provide the City with applicable exemption codes for
the 50,000+ parcels in the City, as well as the appraised values and the dollar benefit of
each exemption received. The information received from the County will be for property
tax bills and, where applicable and in lieu thereof, for possessory interest tax bills.
Nobody knows better than the person himself/herself whether or not he/she
receives a property or possessory interest tax bill from the County and, if so, whether
there is/are exemption(s) which reduce the assessed value. If a tenant pays rent but
the landlord receives the property tax bill, the landlord would receive the billing for the
special tax. How the landlord chooses to deal with that special tax, as with the regular
property tax bill, is between the landlord and the tenants. Again, whatever exemptions
the landlord receives would also apply in reducing the special tax bill initially sent out.
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