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Sonoma County. The chosen spot of all the earth as far as nature is concerned, according to the famed plant wizard Luther Burbank Diverse County, with 1,010,000 acres of land on 1574 miles of scenic roadways, Sanoma County is rightfully famed for its agriculture. Did a culture, industry

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and recreation as well as for the amazingly successful ethnic and economic mixture of its more than 340,000 residents on for the forward looking philosophy of its local governing bodies. Now we invite you to take a closer look at Sonoma County in the eighties with your host,

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Rich McGlinchy. Glad you could join us on this tradition of cinema countin eighties. We're going to meet a new county official, always not new to the county government family. His name is James Jim Gallagher, and he is our newly elected or not really all that newly

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now Sonoma County assessor Jim. Before we actually get into the questioning anything about you and the assessor's office a little bit about your background, I want to mention first the paintings on our wall, this tradition of cinema canon eighties, thereby Alice Petricka, Alice has been painting

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the beautiful redwood scenes for the past 10 years that we think their splendid Dallas. We thank you very much for letting us have them here on the show. It was nice to see you, Mr. See you. Really? Yeah. Uh, Jim, your elected county assessor in 1986

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took over office January 1st or right after January 1st 19 eighties. But prior to that comfortable background about Jim Geller, where we from? What did you do before that? Well, I was originally born in Minnesota, moved to California. Spent most of my life in San Francisco,

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and I've been here in Sonoma County for the last 18 years. I came to work in the assessor's office 18 years ago and have taken all types of real estate courses and preschool courses. And that's what we are not. So you were with them with the

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state of the county assessor's office for about 18 18 years prior to being elected to head the office, OK, And our congratulations. A little belated, a pure but thank you. Congratulations for winning the election, Jim. A lot of people know that they come into the assessor's

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office periodically. They may look upon mapper or something of that nature, but that only begins to scratch the surface. So why don't you tell us? What exactly does the assessor or the assessor's office do? Okay, well, the actual book description that is given on the assessor

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the assessor is responsible to locate and identify and value all taxable property within Sonoma County. We are guided by the state Legislature, the laws that have been created and we're watched also by the State Board of Equalization. They come in and periodically sample our work to

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make sure that we're doing everything by the books. They keep a very close. Yes, Most state agencies keep a close eye at all. Not that we would do anything wrong. But how are values established for property? Well, the values are really established by the marketplace. Theus

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Assessor is obligated since the passage of Prop 13 to value properties at their market value. We only now value properties when there is a change of ownership for when there is new construction. And at that time we look at the market value and we put that

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value on many people think that we are obligated to put on the sales price, but we're finding that 95% of the time the sales price does reflect what the property is really worth. But we do have the option to go to another value, and we arrive

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at these values through ah, market approach for the cost approach for the income approach. Yeah, what you said about the door. I think it's very important that, generally speaking, the property it's assessed value pretty much represents what the property is, Lord. Yes, that I think that's

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very true in our county now, right to me that I've met the initial time and then from then on it can only increase 2%. So after a few years, your value really doesn't reflect market. But that's one of the good things about Prop. 13. Exactly Jim,

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who establishes this value? We have 22 appraisers in the office, and they look at all the properties, all the transactions, and they determine the value, and then it's placed on the assessment roll. That assessment roll is presented to the Board of Supervisors and the tax bills

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air generated from that assessment Roll. The assessors are not a part. You're the assistant there's appraisers basically are skilled in evaluating property. Yes, I think this is their This is their forte. Yes, yes, were required under the State Board of Equalization to take a certain amount

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of training every year to keep our skills and to learn new skills. No. What if I disagree with my assessment? For instance, I get a bill and it says my property $85,000. And I say, Don't $85,000. It's only worth 65 or something like that. What rights

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do I have is a taxpayer? OK, well, whatever you I'd encourage you to come into the office and talk to our appraisers or myself. Many times we're not aware of some problems that take place with the property, and we value it at market, not knowing that

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maybe there's something wrong. Other times, people aren't aware of just how we arrive at the value, so I'd encourage you to come in and talk to our office. If we can't reach some resolution at that point, then you do have the opportunity to go before the

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appeals board. It's a very informal proceeding. You come in and you state your case to the board. It's not. The Board of Supervisors is separate. A group of three men and then the assessor's office will present our case. And then that board determines who has the

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proper value you Onley have between July 1st and September 15th. File an appeal, or if you get involved in the supplemental assessment, you have 60 days after you receive notice. So it's important that, you know, if you are upset about your value, that you come in

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right away July 1 and shipped over 15. Yes, okay, now what? My current taxable value, in my opinion, is too hard. Can you review the value at any time? Yes, we can. There are provisions again in the law that say we can go in and look

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at the current market value and compare it to your base year value. For instance, I have instructed my staff to go out and take a look at the condominiums within Sonoma County. I'm aware that in the late seventies early eighties, condominiums were selling at a pretty

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high price, but over the years the man has dropped, so the condominiums have reduced come down quite a bit in value. So what I want to do now is take a look at those and actually reduce the values on those properties. And that law has been

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in effect since about 1979 and this is really the first time that anyone has gone in and suggested that we take a look at particular properties. But things do happen. You know, if there's a dead, a disaster or something, then we should take a look at

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what the market value is today. It's good to know that the door is open to if people do have you, the audience have a problem. Feel that your assessment is too high, and I think you have a legitimate complaint against the appraisal that was put on

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the property. You can come in and you can file between July 1st and September 15th for an assessment appeal, and then you will be heard by three men who are not members of your assessor's office. There, there, judges, if you will, and the assessor presents their

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reason for saying it's worth this and you, in turn, can make your presentation. That's correct. That's right. Okay, well, are there any other property tax relief programs available right now. Yes, there are a number of relief programs available. The most universal is the homeowners exception. All

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right, if you own an occupy your house, you're entitled to a reduction in taxes that amounts to between 70 and $75. And if you're a disabled veteran, you can get an exemption of $200,000 on your property, and then we also have some relief for senior citizens.

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If you're over 62 your income is below $12,000 you can apply for a refund. For example, if your income is $6000 you would get 50% of your property taxes back again. You have to be over 62 on a limited income. Then there is another plan, also,

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that you can postpone your property taxes if you're over 60 to your income has to be under $24,000. But you sign an agreement with the state and say that I just don't want to pay my taxes anymore. And the it's put a lien against the property

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and it collects interest. But when you sell the property than the taxes are collected, or if you die and then it comes out of your state, so it gives you the money today to work with if you need it, so you can actually do that is

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a very important factor. Glad you're bringing us out, because I don't know if you know that we're not. I wasn't aware that. Yeah, yeah, that's That's one of the things I want to do. You know what my term is? Let people know benefits that are available.

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Then there's benefits for the farm community. We have the egg preserved program. And there were two new bills that passed in November, Proposition 58 Proposition 60. Proposition 58 now says that parents can give their property to their Children and we won't reappraise it. The Children will

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bring along the charm of scanned value with Prop. 13 way have many times when, say, farm family just can't keep it up anymore. They want to pass it on to the Children. But with the increase in taxes, the Children just can't keep the farm, so to

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speak. This will allow Children come in and just pay the lower property taxes that their parents had great property in that family. Exactly what they want now we're familiar. You mentioned there were changes in value when property changes hands. All right, I think it's also truth.

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There's new construction. But how do you assess businesses? The business is we send out a personal property statement to the businesses and we happen to have one right here. And we said, send that along to the business and we asked them what kind of equipment they

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have to operate the business. And based on their reporting, then we we tax them again based on what they reported. We do, ah, appreciate their equipment on a yearly basis and index it. But, uh, that's how we get businesses. Uh, how do you get the name

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of a bit while we go through the city licensing in the State Board of Equalization and we obtain the light, had the names from there, And then we put the names into our system and requests that they provide us with information would be pretty difficult to

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hide a business. Yes, uh, run away. You just mentioned getting the name of businesses that a new tax? No, actually, years ago, they called it an inventory tax. But we've done away with inventories in California in the late seventies. And so now we're just looking at

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their equipment and things like that. So it's not really a new tax, everybody. New tax Uh, what is the final day to file? The form actually says April 1st. That form is designed primarily by the state, but the actual filing date is the last Friday in

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May is when you have to have it in, uh, look complicated. There's a business after hired accounting for No, not really. The form is hard to read. There's very small print on the instructions. But if you can get through that and you're still confused, then I

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would urge people to come in and we'll work with them and show them how to fill out the form. One of the things that I planned to do to during my term is to put on seminars for C. P A's or people that do the bookkeeping

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to instruct them how to fill out the form and give us the right information. And it will save us both time and money. We won't have to go back and forth, and many times people don't report properly and they're over. Since then I want to make

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sure that nobody pays more than they should. So what if a speaking in this business tax again? What if I sold the business? Do you prorate the taxes, then? No, we don't. Unfortunately, if you own the business on March 1st, you're liable for the entire year.

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And this is something that people should be careful in escrow when they're selling a business that there are some arrangements for the taxes to be prorated in escrow. We're gonna pause right here him and let the station bring the audience a public service announcement. We'll come

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back. And I got a lot more questions to ask you about your first term as assessor and keep saying in my term, and I think you're probably gonna make that plural. We're talking to Jim Gallagher, Sonoma County assessor. We're talking about the assessor job, but what

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the officers does, and he told us a lot of interesting information already, and I hope you stay with us because it get better. When you lend a helping hand, you give yourself away, becoming something so much more than words could ever say. John Denver, asking you

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to make your United Way pledge now because thanks to you works for all of us. United Way. Hi, I'm Ricky. Shorter safety equipment is important. Everyone play sports. The right kind of helmets, pads, gods and supports could make the difference between having a good time and

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being put out of action by an injury. This message is from the Will Rogers Institute, White Plains, New York For many young Western boys who have faced overwhelming problems, a new life is being billed. Anna Boy Center in Sonoma, California This work requires the help of

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all adults of goodwill. Please give generously toe Hannah boy Center, Sonoma, California This is Bob Hope. Thank you. Welcome back. Ladies and gentlemen to this edition of cinema counting the eighties were talking to James Jim Gallagher, our newly elected by that I mean 1986 and Omagh

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County Assessor. We're talking about the assessor's office and the role it plays in all of our lives. And Jim has told us a number of things. One of the things that I did not know definitely was. The senior citizens can get a rebate in there and

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attack. Did you want to re go over that just a moment again. Yes, there's a number of things. If you're over 62 your income is under $12,000 then you file with the state and you can get a refund. For example, again, if if you makes $6000

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then you get 50% of your taxes back. And then, if you want to postpone your taxes indefinitely, you can also sign a contract and agree that the taxes will just become a lean. And then when you sell the house or if you die than the taxes

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are collected out of your state, there's another thing to for seniors that just passed in November. It's Proposition 60 and that entitles someone who is over 55 to move from their house. Say, it's a big family house and the kids are now moved out, and you

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really don't need all that space and you want to go to something smaller. A lot of people are hesitant to do that because of the increase in taxes. What Proposition 60 said is that you can now move into a house of similar value or lesser value

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and take your Jarvis scan or your Prop. 13 value with you so you could move out of this big house. That is maybe worth 150,000. Move into a condominium or a smaller house that's worth 125 140 take. Maybe your low taxes of three or $400 a

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year with you into the new house and you wouldn't have thes are marvelous things. I hope gentlemen consider paying attention to these. Because as we grow older, these things are going to apply to all of us, and they already do to me. I'm gonna go looking

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and just immediately. All right, listen, how will I know if I'm going to get a supplemental tax bill? Well, the supplemental tax bill, when you when we do the supplemental and actually what the supplemental is, it came into effect in 1983 and it's kind of the

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latest change in taxes. Prior to the passage of Proposition 8 13 we used to only look at properties on March 1st of every year since 1983. We now have to increase the value at the time you purchase the property are the time of new construction. In

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other words, If you bought a piece property in April, we would have to increase your taxes effective April and what that is. It's kind of a catch up bill and what it says. We're gonna increase your taxes for the remainder of the fiscal year so we

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would increase your taxes above and beyond what was on the property previously, uh, for the until the end of the year, told June 30th. Well, if I buy the house and I settle the property taxes for the year during the escrow, uh, rise into supplemental included,

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well, the supplemental takes place after the transfer, so the title company really isn't aware of how much the supplemental bill will be. That usually comes a few months after eso. That's something we want to do is get some notices to the title company to make people

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aware that you will get an increase in taxes and you will get an additional bill. This is again an additional billets in addition for the first year to your regular bill. So you do have to pay both bills, right? Here's another thought never just asked before

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what happens if I pay less for a property, then that is on the tax books. Okay, that does happen on occasion. You know, something's happened to the property. You will be entitled to a refund. You know, we will compare last year's value that was on the

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property with the new value created by your transfer. And if it is lower, then we will give you a refund. So, uh, would you ever seen the supplemental tax bill? Would I Would I then get one every year? No, it's just for that initial period. It's

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just kind of a catch up thing. So once we send you the supplemental than the next tax year, you will just get one tax and that will reflect your new value that's been created. Just one picture, just they payable, Uh, in a case like this, would

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my him if I went to what we're talking about right now with my impound account? Pay the supplemental tax bill. Not normally that the supplemental bill that what no goes directly to you and it is your responsibility. I do recommend that depending on the time of

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the year that you buy it in the time of the year that your supplemental comes that you should check with your lender. Maybe they would have enough funds built up in your impound to cover that that additional bill. But as's faras, we know it's primarily the

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responsibility of the buyer. That Bill goes to you, it doesn't go to your bank lender. Jump back to me. Let me let me refresh the audience in mind on this. This, uh, we used to just value property on the front of March 31st March, which it

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was. But now we do that. But it runs at your every Whatever You brought it right. And that's why you get your supplemental tactical basically is to make up for it wasn't covered as of March 31st. People wonder why am I getting that? You know, you

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want to be sure you're making that clear to them, it is very confusing, but it it just is because most people think if they impound the money, Yeah, let's go take care of the taxes and all of sudden boom. Here's another tax bill, and I think

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if they don't know the change in the law problem on March 31st March March 1st, much for which it used to be in the past to every month. You might say Now, when you buy the property starts right, then yes. On a lot of people not

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knowing that are really upset, I guess. What? Really? I mean, they weren't warned by the realtor or someone, and they just they say, My gosh, I beg borrow and steal to get the down payment. I don't have the money for this extra bill. I had no

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idea that it was going. So that's again part of our project. We want to get that information out. Let people know that that it is coming. Yeah, education in the public on this is really an important fact. I'm glad that you were planning Jim. I think

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that's a very advanced idea. Because throughout the state, I've heard people mention the supplemental tax roller bill as really shocking them, mainly because they were not told in the process of s graders escrow whether or when they bought the property. And there hasn't been maybe as

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good enough educational process go on statewide during to alert people to that. But I'm glad you bring it out today. I have recently talked with some escrow companies and they have been agreeable. If I put together a little form that they will hand it out to

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the taxpayers. That's where the buyers and we're also working with the recorder's office when she males the deed back to have a little flyer in there that says, You may be getting a supplemental bill. So I want to do away with surprises. Great. That many surprises

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in the assessors. That's really great. Yeah, I'm really pleased to hear you say that, because I think that, yeah, they're better off a lot of strength surprises in that way we could do without those. Listen, you mentioned that or rather you mentioned the egg culture preserved.

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That's a firm of tax relief. Now I've read on that a little bit. Sure, Thank. Preserved is a zit says it's to preserve agriculture. It was initiated back in the mid to late sixties and what it says If a person is willing to donate or commit

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their property to agricultural use for 10 years, then the assessor will give them a tax break. And what we do, we look at the income that's derived from the property and your taxes air based on your income And, uh, so it's It's a very good program

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for someone who is seriously into agriculture. Because many times, depending on the crops and things like that, the income is quite low. So, in driving your new taxes, we've seen some particular crops where taxes air down to 10 to 25% of what they would have been

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had they not been in the egg preserved. And all right, um, recently I was there when you asked the Board of Supervisors to allow you to value the preserves in a more beneficial way. Now, how did you How do you plan to do that? Okay, that

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was a law that passed back in 1980 and we're seeing, especially with the great prices and vineyard prices, that the income is climbing considerably. And again, we're basing our values on income. And so the when the income gets so high, we're finding that some of the

00:23:52.280 - 00:24:11.280

incomes air actually above the base year value. So people are being paying more than they would if they weren't in the egg preserved. This new legislation that the board has adopted will allow me to goto at least a minimum of 10% below the Prop. 13 value,

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and it's always 25%. So some of the people in the vineyard production in this case will only pay 25% of her 75% of their Jarvis can value. So we will acknowledge that that they have restrictions on their land. That's great. That he'll get. That may be

00:24:31.150 - 00:24:47.520

the step that necessary to keep agriculture land in agriculture and keep people on the farm. Because nationwide people are losing the farm from the farms are going the way of the whole development. That's another thing, and that that's the best part of Sonoma County. It's the

00:24:47.520 - 00:25:05.930

agricultural in its been our primary a crop, if you will, a primary source of income for many, many years and pure it still is, and I, for one, and I know you feel the same way, would hate to see that change and add cultural preserves have

00:25:05.940 - 00:25:24.480

been one way of helping people stay on the farm. Uh, do you anticipate any other changes? Let's say in the next year occur that could benefit agriculture, regard taxation well, one of the things that bothers me their value does change every year, based on this capitalization

00:25:24.480 - 00:25:40.340

rate that's issued by the state of California, and that rate is tied into government bonds, which are pretty secure. And to me, that doesn't really reflect the problems that the farmer has. I would rather see that rate tied to, say, their their mortgage rate or something

00:25:40.340 - 00:25:56.930

like that that's a little more consistent. We're seeing a fluctuation now where rates have dropped considerably and it's reverse proportion. Their value goes up. So I would imagine that throughout the state that will be looking at some way of making their their rates more stable. Another

00:25:56.930 - 00:26:13.070

thing that is kind of bothersome to me is that again we talked about families owning farms and the parents get a little older and can't work it, and the Children want to stay there and work on it. They can't build a second house for the kids

00:26:13.080 - 00:26:26.890

on the property, and I would like to see a little more lead way there where there could be a second residence in AG preserves so that the Children could have their own house and stay on. You know, they're not going toe make a subdivision out of

00:26:26.890 - 00:26:45.130

it. They just maybe one another house. Yeah, there's so there. There's some things that I would like to work with the Farm Bureau on get and it was very, very helpful. Jim or movie of homes. Tax money? Yes, they are. Since July of 1980 any newly

00:26:45.130 - 00:27:02.120

constructed mobile homes are taxed by the assessor. And when there's a change of ownership, they are. I've seen many people who give up the licensing of a mobile home and requests that it come onto the property tax rolls. I have a problem with that and that

00:27:02.120 - 00:27:17.480

once it's on, the property, tax rolls is treated as a residence and it's increased 2% per year. Or if they maintained their license would be like an automobile that continues to depreciate down. So I'd like to meet with mobile home groups and people that are interested

00:27:17.480 - 00:27:29.300

or maybe get another flyer out on the work. I understand that when they buy it, they're told that if they go on property taxes, they don't have to pay the sales tax. So I think they should look and see how long it will take to make

00:27:29.300 - 00:27:43.320

up on that sales tax, because I think they'd be further ahead the state license. Then over time maybe getting bad advice here. Um, a couple of things I want to ask you. We got a cup about two minutes left to us. How have you found the

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change from being a member of the assessor's office to being the headman? It's pretty exciting. Yeah, it's. I feel good in that. Many of the newer department heads are are cooperating more. We want to work together instead of each department having their own separate. I'll use

00:28:01.820 - 00:28:12.690

the term empire were working out, had one number come over and say, Well, don't you maintain this information? I said, Yes, I do. And he said, Well, when there's no need for me to do it because we can use your sources So I think overall, it's

00:28:12.690 - 00:28:25.820

gonna be a real benefit to the county. Eso I'm really enthused to be be part of what I call kind of a new look in the county system, and I've had a lot of cooperation from the people that I worked with and who are now working

00:28:25.820 - 00:28:39.920

for me and and I feel that we're moving ahead. There's a lot of changes to me, made some reluctance to change. But the general attitude is that there's a lot of things we can do for the taxpayer that we haven't done before that will just provide

00:28:39.920 - 00:28:53.610

better service for them. We've got about a minute left to what are some of the changes you have in mind? Well, as I've stressed very briefly, yeah, throughout this, I want to get more information on it. Really think it's important that people know what the assessor's

00:28:53.610 - 00:29:10.950

office is doing and what's available. We have, AH, wealth of information as faras record keeping and data and things like that and through some recent changes in the law, I'm able to give more of that information out. But, uh, it's primarily to make sure that nobody

00:29:10.950 - 00:29:25.440

is paying more than they should because that I feel that's really important. And if there's laws that have been created by Sacramento, the assessor should enact those laws and that's what I've done with a couple of these things here and make sure that people get all

00:29:25.440 - 00:29:38.140

the benefits because we're always there to take your money but not really willing to give it back. And I think if the laws are made, then everybody should receive the benefit of those laws. Jim, thanks very much for taking the time to come visit with us.

00:29:38.620 - 00:29:57.730

I think it's very, very important. And what you've told us tonight on the program is violent permission to everybody, rather vital importance to everyone out there. Thank you. Our guest has been James Jim Gallagher, and he is the the county assessor, directed in 1986. And he's

00:29:57.740 - 00:30:09.370

been telling us about many, many things that are certainly were new to be in the assessor's office. And I hope that you thought it was interesting. My name is Richman TV programs to Know McCann in the eighties. I'll be back with you next week with another

00:30:09.370 - 00:30:16.590

member of the county government, family, all related agency until then. Good night. Good luck. Good health to you all.