Special Notice / Hearing: None__
Vote Required: Majority
To: Honorable Board of Supervisors
From: Michael P. Callagy, County Manager
Subject: Alternate Method of Tax Apportionment ("Teeter Plan")
RECOMMENDATION:
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Adopt a resolution authorizing the President of the Board to execute an agreement between the County of San Mateo and the Treasurer-Tax Collector regarding the financing of the alternate method of tax apportionment (the "Teeter Plan") for FY 2019 20.
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BACKGROUND:
On October 12, 1993, the Board of Supervisors adopted a resolution implementing the Teeter Plan for the 1993-94 tax year. This plan, which has been in effect in San Mateo County since that time, is set forth in Revenue & Taxation Code sections 4701 et seq. and allows the apportionment of all secured property taxes to the taxing agencies on the basis of taxes levied, not collected, with all rights to the collection of delinquencies and penalties belonging to the County. The Teeter Plan benefits the cities, school districts, and special districts because they regularly and predictably receive the full amount of taxes levied during a tax year through periodic apportionments from the County Controller. The County benefits because it collects penalties and interest on delinquent taxes which generally exceed the taxes advanced to the other agencies over time.
DISCUSSION:
Pursuant to State law, the second installment of countywide property taxes for fiscal year 2019-20 is due on April 10th of each year (the "Second Installment"). In light of the current novel coronavirus (COVID-19) pandemic, many taxpayers are experiencing financial distress and may be unable to make their Second Installment payment on time.
On April 15th of each year, the County Controller apportions property tax revenues to the taxing entities in the County (the "April Apportionment"). Pursuant to past practice, following the April Apportionment, taxing entities receive 90% of their secured tax...
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