Tax Information on the Web*

R1

All San Luis Obispo County property tax bills should provide a good faith estimate of how much goes to support at least the six government agencies that receive the largest share thereof. Response: This recommendation will not be implemented. The recommendation addresses a subject that has not been an issue in the past. Each year, the Tax Collector sends over 100 customer surveys along with randomly selected tax bills giving taxpayers an opportunity to make comments about the tax bill. Prior to this report, we have never received a request for tax breakdown information of individual tax bills. The current method of providing tax information is in full compliance with state laws. The detailed information that would be added to each bill would be significant. In our judgment, a cost-benefit analysis of the Grand Jury's recommendation would not justify the cost of implementing a system modification to provide the requested information. A new computer system in the future may make this recommendation more viable. The IT Master Plan for San Luis Obispo County was written in 2002, and it recommended replacement of the aging mainframe based property tax systems. One key goal of the plan was to move the County off of the mainframe computer and onto client-server platforms. The property tax system replacement remains a priority of the current IT Master Plan. There have been several attempts to get a project started since 2002, but a reasonably priced solution has not been identified. As a result, funding has not been provided for in the County budget. One possible source of funds was a state program called the Procurement Technical Assistance Program (PTAP) that was intended to enhance efficiency of property tax systems across the state. Unfortunately, PTAP funding was eliminated several years ago in a budget cutting move by the Legislature. At such time as a new property tax system solution is selected and funded A-24 July 27, 2010 Response to 2010 Grand Jury Report Frank L. Freitas, CPA Re: Property Tax Bill Information Tax Collector July 27, 2010 Gere W. Sibbach, CPA Auditor-Controller it would be appropriate to consider including more readily accessible disclosure of revenue distribution information for taxpayers.

R2

The web site "Tax Information on the Web" that is referred to on the tax bill should provide detailed information on how tax payments are disbursed to various schools districts and other agencies. Response: This recommendation will not be implemented. The current method of providing tax disbursement information is in full compliance with state law. The Auditor-Controller's web site found at http://www.slocounty.ca.gov/AC/Property_Tax_Information.htm includes two publications that provide extensive information about property tax rates and allocations to local agencies. The publications "Property Tax Rates, Allocations, and Assessed Values" and "Property Tax Perspective" are available for the current fiscal year and several prior years.

R3

The County Treasurer-Tax Collector and the Auditor-Controller should proceed promptly to implement recommendations 1 & 2 above. Response: This recommendation will not be implemented. See detailed responses to recommendations 1 and 2 above. Conclusion: Additional review of the recommendations provided in this report will be considered at the time of the procurement of a new and more robust property tax assessment and collection computer system. Frank L. Fréitas, CPA W. Sibbach, CPA San Luis Obispo County San Luis Obispo County Auditor-Controller Treasurer-Tax Collector cc: San Luis Obispo County Board of Supervisors James Grant, County Administrative Officer A-24 July 27, 2010