(endorsed) March 10, 2022 The Honorable Theodore C. Zayner MAR 1 5 2022 Presiding Judge Clerk of the Court Santa Clara*

At the start of the investigation, the Annual Property Tax Bill and Supplemental Property Tax Bill did not show the computed amounts of the tax bonds and levies and did not show the value for the "ASSESSED VALUE TAXES" and "TOTAL LAND & IMPROVEMENT TAXES" in the 'DETAIL OF TAXES" SECTION. A taxpayer wanting to verify these calculations was faced with a lack of transparency. During the investigation, DTAC followed through on the commitment to provide this information on secured property tax bills. The Civil Grand Jury commends the County for addressing this issue. <b>Response:</b> The County agrees with this finding. No recommendation. Board of Supervisors: Mike Wasserman, Cindy Chavez, Otto Lee, Susan Ellenberg, S. Joseph Simitian County Executive: Jeffrey V. Smith County of Santa Clara, Finance Agency's Response to Civil Grand Jury Report: PROPERTY TAX BILLS: More Than Meets the Eye, December 16, 2021

In the "DETAIL OF TAXES" section of the Annual Property Tax Bill and the Supplemental Property Tax Bill, line items ending in "S" show a tax rate for a group of bonds, not individual bond tax rates. This places the burden on taxpayers and the public to determine the individual bond rates, and it lacks transparency regarding how taxes are calculated and represented on the tax bill. <b>Response:</b> The County agrees with this finding.

The WhereDoTaxesGo.org website does not provide details of calculated values so that the taxpayer can understand the dollar amounts that correspond to percentages in the One-percent Tax Distribution Table or the Debt Levy Rate Table. County of Santa Clara, Finance Agency's Response to Civil Grand Jury Report: PROPERTY TAX BILLS: More Than Meets the Eye, December 16, 2021 <b>Response:</b> The County agrees with this finding. The redesign of the application is discussed below. <b>RECOMMENDATION 3</b> DTAC should include on their Tax Distribution website the ability to show the secured property's net assessed dollar value and the calculated dollar amount of each tax represented in the One-percent Tax Distribution Table and Debt Levy Rate Table. This should be implemented by June 30, 2022. The initial purpose of the County's Tax Distribution website, WhereMyTaxesGo, was to display the 1% distribution and bond rates for each tax rate area (TRA)1, not to display the 1% maximum tax distribution of individual property tax bills. This presentation format is very similar to other Bay Area Controller-Treasurer websites (see Appendix B). While the WhereMyTaxesGo application does include a function to look up a TRA based on a property ID (APN), none of the individual tax distribution data by property is currently housed in its database, that information resides in the property tax system instead. Some systemic changes would be required but this information could be made available on the payment portal where other bill information, such as charges and bill details, a PDF copy of the tax bill, and payment tracking is currently accessible. The Agency will add a new link to each displayed bill in the payment portal that can access a popup window with the tax distribution details, as shown in the image below. Property Address: 594 PARK JOHNSON PL SAN JOSE CA 95111 Tax Rate Area: 017-031 ☑ Envelope Tracking Tax Distribution Annual Tax Bill Last Payment Additional Amount Pald Balance Pay By Payment Tax InstallmentAPN Tax Pay In Full Status To Date Date Date Amount Number Suffix Amoun Charges Due 12/07/2021 $0.00 12/10/2021 PAID 2021/2022 $0.00 $4,656.44 $4,656,44 04/11/2022 PAID 12/07/2021 $4.656.44 $0.00 $0.00 00 2021/2022 $4,656,44 The popup window would then display the 1% percent distribution details and corresponding dollar amounts, as displayed below: 1 Tax rate area is a map of the contiquous area that defines a unique set of taxing jurisdictions. County of Santa Clara, Finance Agency's Response to Civil Grand Jury Report: PROPERTY TAX BILLS: More Than Meets the Eye, December 16, 2021 Tax Charge Tax Rate 1% Tax Distribution Table 21.05 Bay Area Air Quality Management District 0.20% 1,708.11 Central Fire Protection Zone No. 1 16.23% County School Service 3.26% 343.10 East Side Union High 1,522.88 14,47% 1,295.56 <b>ERAF</b> 12.31% 2,823.70 Franklin McKinley Elementary 26.83% 4.21 Guadalupe Coyote Resource Conservation District 0.04% 730.39 San Jose-Evergreen Community College 6.94% 1,576.56 Santa Clara County 14.98% 54.73 Santa Clara County Importation Water-Misc District 0.52% Santa Clara County Library 2.74% 288.37 17.89 Santa Clara Valley Water District 0.17% 124.19 Santa Clara Valley Water District Central Zone 1.18% 13.68 Santa Clara Valley Water District West Zone 4 0.13% Total 100.00% 10,524.42 This addition to the payment portal would make it a convenient one-stop hub for taxpayers looking for information about tax charges and distributions for their bill. This new feature will be implemented for the new tax year FY 2022-2023. The County will also upgrade the WhereMyTaxesGo application to add a new "Tax Amount Per $100,000 in Assessed Value" column, as displayed below. This addition would not provide amounts for a specific property but would show how the percentage translates into dollars based on $100,000 assessed value amounts. These rates are common to any property in a TRA. The upgrade of the WhereMyTaxesGo application will also include a link to the property tax payment portal where taxpayers would be able to find the details of individual tax bills, also shown in the mockup image below. County of Santa Clara, Finance Agency's Response to Civil Grand Jury Report: PROPERTY TAX BILLS: More Than Meets the Eye, December 16, 2021 SCCTax Friday Jan 14, 2022 2:25 PM PST Tax Distribution APN: 49470032 Property Address: 594 PARK JOHNSON PL SAN JOSE Tax Rate Area: 017-031 Tax Distribution of the New Fiscal Year 2021-2022 This report shows the allocation of property tax in Santa Clara County for your tax rate area Per $100,000 Click here to see the exact allocation amount per tax bill <b>View Tax Distribution Chart</b> Assessed Valualtion 1% Ad Valom Tax= 1% Tax Distribution Table $1000 0.21% Bay Area Air Quality Management District 2.10 3.41% County School Service 34.10 15.12% East Side Union High 151.20 14.23% 142.30 ERAF 28.03% 280.30 Franklin McKinley Elementary 0.40 0.04% Guadalupe Coyote Resource Conservation District 133.10 13.31% San Jose 72.50 7.25% San Jose-Evergreen Community College 156.50 15.65% Santa Clara County 5.40 0.54% Santa Clara County Importation Water-Misc District 1.80 0.18% Santa Clara Valley Water District 18.90 1.89% Santa Clara Valley Water District East Zone 1 1.40 0.14% Santa Clara Valley Water District West Zone 4 1,000.00

The Annual Property Tax Bill and the Supplemental Property Tax Bill do not explain that cents are truncated and do not explain the rounding adjustment. Although these practices are consistent with legal requirements imposed by the Revenue and Taxation Code, the current information provided to taxpayers lacks transparency for how tax dollars are being calculated. <b>Response:</b> The County agrees with this finding. <b>RECOMMENDATION 4</b> DTAC should provide the taxpayer with an explanation for the truncation and rounding adjustment. This should be implemented in the next annual property tax bill. The proposed solution is to add two explanatory statements to the Detail of Taxes section of the tax bill, as shown in the mockup image below. County of Santa Clara, Finance Agency's Response to Civil Grand Jury Report: PROPERTY TAX BILLS: More Than Meets the Eye, December 16, 2021 DETAIL OF TAXES TAXING AGENCY RATES (%) AMOUNT VALUE LAND, IMPROVEMENTS, PERSONAL PROPERTY 1.000000 1% MAXIMUM LEVY 818,077 8,180.77 0.006100 49.90 CO BOND 2008 HOSP FAC 818,077 818,077 0.038800 317.41 CO RETIREMENT LEVY 818,077 0.012660 103.56 CO. HOUSING BOND 2016 0.033100 270.77 COMM COLLEGE BONDS 818,077 0.010000 81.80 EL CAMINO HOSPITAL 2003 818,077 265.85 ELEM OR UNIF SCH BONDS 818,077 0.032500 0.041600 818,077 340.30 HIGH SCHOOL BONDS 818,077 0.001500 12.27 MID PENINSULA OPEN SPACE 2014 1.176260 9,622.63 TOTAL ASSESSED VALUE TAXES LAND AND IMPROVEMENTS 818.077 0.005100 41.72 SCVWD-STATE WATER PROJ TOTAL LAND & IMPROVEMENT TAXES 0.005100 41.72 Rounding adjustment of -0.01 made to create -0.01 two equal installments TAXES DUE $9,664.34 Note: Tax amounts less than 0.01 are truncated per CA R&T code 2152 Taxpayers can request a copy of the full details of each bond on their bill by calling (408) 808-7900 or visiting our website to view or print a copy at https://payments.sccgov.org/propertytax The rounding adjustment message will only appear for two installment bills where taxes sum to an odd cent and -0.01 will be displayed in the Amount column. This change will be effective for the new tax year FY 2022-2023.

DTAC collects customer feedback via an online survey available only in English that addresses website interaction but gives little opportunity for customer input regarding other concerns. There is limited effort to gather input from the public about how best to improve the overall taxpayer experience using alternative methods. Response: The County partially disagrees with this finding, specifically where it states that the customer has little opportunity to provide input regarding other concerns. County of Santa Clara, Finance Agency's Response to Civil Grand Jury Report: PROPERTY TAX BILLS: More Than Meets the Eye, December 16, 2021 Prior to the pandemic, the payment portal was the most visited County website. The survey was designed to solicit information from the public on how best to serve their needs when making online payments. The feedback received from the survey has resulted in annual and ongoing improvements to the portal. <b>RECOMMENDATION 5</b> The County should create a way to capture concerns from taxpayers in multiple languages, independent of an online communication channel, such as surveys included with the paper property tax bill, focus groups, and advisory boards. This should be implemented by June 30, 2022. Please see the response to Recommendation 2 above regarding the estimated costs associated with sending additional pages in property tax mailings. As an alternative, the Agency will conduct market research for feasibility and cost implications surrounding the use of a telephone survey, available in multiple languages, for taxpayers to provide feedback. This effort will begin during tax year FY 2023- 2024. Furthermore, the online survey will be translated and offered in Spanish, Vietnamese and Chinese and a link for the survey will be provided on the property tax bill. These changes will be effective for tax year FY 2022-2023. County of Santa Clara, Finance Agency's Response to Civil Grand Jury Report: PROPERTY TAX BILLS: More Than Meets the Eye, December 16, 2021 <b>Appendix</b> Appendix A USPS Postage Rates and Additional Annual Ongoing Costs Source: https://www.USPS.Com First-Class Mail Retail—Single Piece Letters (Stamped) 1,4 Large Envelopes (Flats)2 Weight Not Over (oz.) Weight Not Over (oz.) 1 $0.58 1 $1.16 2 0.78 2 1.36 3 3 0.98 1.56 3.5 1.18 4 1.76 5 1.96 Letters (Metered)1,4 6 2.16 Weight Not Over (oz.) 7 2.36 $0.53 1 8 2.56 2 0.73 9 2.76 3 0.93 10 2.96 3.5 1.13 11 3.16 12 3.36 13 3.56 First-Class Mail Postage Rates Commercial Flats Standard Letter Sizes (Large Envelopes)1 Weight Not Over Weight Not Postage (oz.) Over (oz.) <b>Current Postage</b> Potential Heavier Increased cost Annual cost Mixed AADC Mixed ADC Costs (x600k bills) Bill Postage per piece increase 1 $0.49 $291,000.00 1 $0.89 $0.41 $243,600.00 $534,600.00 2 2 $0.49 $291,000.00 $363,600.00 $0.61 1.091 $654,600.00 3 3 $0.49 $291,000.00 1.291 $0.81 $774,600.00 $483,600.00 3.5 $0.49 $291,000.00 4 4 $603,600.00 N/A $1.49 $1.01 $894,600.00 5 5 N/A $723,600.00 $1.69 $1.21 $1,014,600.00 6 6 N/A $1.89 $1.41 $1,134,600.00 $843,600.00 County of Santa Clara, Finance Agency's Response to Civil Grand Jury Report: PROPERTY TAX BILLS: More Than Meets the Eye, December 16, 2021 Appendix B Example of 1% Distribution Information Provided by Contra Costa County Source: https://www.contracosta.ca.gov/6581/Where-Your-Taxes-Go Rent and Utilities Help for Tenants and Landlords Ayuda con la renta o los servicios públicos ŧ <b>COVID-19 RENT RELIEF</b> Verifique elegibilidad y aplique Check eligibility and apply in many languages CONTRA COSTA OUR COUNTY <b>DEPARTMENTS & OFFICES</b> SERVICES DOING BUSINESS HOV COUNTY, CALIFORNIA Cities, 8% Special Supplemental Bills Districts, 20% Warrants (Checks) Schools, 48% Budget Tax Rate Area Allocations Enter the Property Address or Tax Rate Area number shown on your property tax bill to see how the basic 1% tax is allocated for fiscal year 2021-22 in your area: CIRCLE V SAN RAMON Address: 6201 Lakeview v Look up OR Tax Rate Area # How does this data relate to the taxes on my tax bill? Your annual property tax bill lists separately all of the tax rates, including the basic one percent tax and voter approved additional taxes (mostly for school bonds), as well as all of the various special taxes, assessments, fees and charges that apply to your property. All of the taxes listed in separate lines on the bill are distributed directly to the agencies levying the charge, except for the one percent tax, which is shared by many agencies. The Tax Rate Area Allocation shows how the one percent tax levied in each Tax Rate Area is allocated." Tax Rate Area 17003 Allocation of Basic 1% Property Tax Fiscal Year 2021-2022 Tax Rate Area 17003 This report shows the allocation of your basic 1% Property Tax to t Allocation of Basic 1% Property Tax various taxing agencies in Contra Costa County. Fiscal Year 2021-2022 View as Chart This chart shows the allocation of your basic 1% Property Tax to the various taxing agencies in Contra Costa County. COUNTY GENERAL 11.63900 % View as Report COUNTY LIBRARY 1.64873 % COUNTY GENERAL STREET C C FLOOD CONTROL 0.19339 % COUNTY L'BRARY 19 0.03953 % CO WATER AGENCY CICIFLOXODICONTROL CO WATER AGENCY SAN RAMON VLY FIRE 14.76300 % SAN RAMA'N VLY FIRE 0.01790 % CC RES CONSV CC RESIDENSV CO CO MOSQUITO ABA 0.17225 % CO CO MOSQUITO ABA I CENTRAL SANITARY CENTRAL SANITARY 1.70802 % EAST BAY MUD EAST BAY MUD 1.64301 % BART BAY AREA AIR MIGNINT | BART 0.69758 % EAST BAY REISN, PK BAY AREA AIR MGMINT 0.20340 % CITY OF SAN RAMON EAST BAY REGNL PK 3.31675 % CO SUPT SCHOOLS 9.59267 % K-12 SCHOOLS ERAF CITY OF SAN RAMON SAN RAMON UNIFIED CO SUPT SCHOOLS 2.04899 % CO CO COMM COLLEGE 11.97590 % K-12 SCHOOLS ERAF COMMICCULEGE ERAF SAN RAMON UNIFIED 33.34842 % 15 20 10 25 30 35 0 5 5.20825 % CO CO COMM COLLEGE Close Window COMM COLLEGE ERAF 1.78321 % 100,00000 % TOTAL Close Window