Until the second part of the program, which will be a one hour question and answer session across the hall following the presentation. So save your questions until the second part. Before we begin, i like to introduce you to the woman behind todays program. San francisco elected assessor carmen chu. The work of her office helps provide over 3 billion in revenue for local services in public education. Last year, her office granted over 16 billion in property tax exemptions, including welfare exemptions. The assessor is continuously committed to providing improving services to the public. Im really happy to introduce assessor carmen. [applause] good morning, how is everybody . Good . I am so excited to see all of you. I want to thank you for spending your morning here with us at the Assessors Office. My name is carmen, i serve as San Franciscos elected assessor. Some of you may have interacted with me when i served on the board of supervisors representing district 4, the sunset district. During that time we worked with many of the nonprofits that are currently here in this room. We had seen many of your directors, many of your constituents and many of you who have come to the board of supervisors to advocate and tell us of your good works, and we appreciate the good work you do. Its not easy to do the work that you do. Its not easy to retain the talent and the staff to do the work that you do and in particular doing it in San Francisco makes it harder. One of the things we hope to do is to make things easier by bringing this workshop together for you. For many of you, you may or may not know about what the Assessors Office does so i want to share with you how it is that we do our work, what you may know about our office is that were always associated and tied to money, right . So many people say when they see me, theyre like oh, the money lady. What is it and how exactly is it that we do that . Well, we do it by making sure we are capturing the correct amount of value for property taxes across San Francisco county. In San Francisco, we have over 200,000 parcels of property and each one of those has an assessed value that we used in order to capture property taxes. Currently we have seen almost a 30plus growth in our property taxes in the last three years alone. Add up the assessment values of all the property in San Francisco, it grew by over 30 in three years. A lot of that is due to the construction youre seeing and the new condos, the buildings, the warrior stadium, all of these Construction Properties that are coming online adding value to our city and creating revenue for us. In the last five to six years, we exceeded our revenue expectations by half a billion dollars. Many of you probably have heard that the state of california return roughly 545 million to San Francisco partially as a result of strong property tax growth. We understand in our office how important it is for us to do our job well so that the city has the resources to support not only our operations, but to partner with many of your organizations to provide the services we most need for our citizens and residents. With that said, what people often dont know about is in addition to doing the valuations on properties, we also administer our welfare exemption program. Thats why many of you have come today. We understand that the welfare exemption process sometimes is very complicated and even in this room, we have such a Diverse Group of organizations that have so many different types of missions, whether it is to support our youth or to create Affordable Housing or it is to provide food for our food pantries. We have so many different groups and each one of you has the potential to benefit from a welfare exemption, in particular if you own a property in San Francisco. So, what we really wanted to do is to make sure that you understood how it is that we run our processes, make sure you know all the deadlines that are coming and also we have invited to come today with us the state board of equalization, if i could ask them to raise their hand for just a moment. They are our partners at the state level who are part of the administration of the exemption process. We dont do it alone. We actually rely on them to do a portion of the work and we follow up with the secondary component. So we want to make sure you walk away with a clear understanding of how it is that we do our work, we want to make sure you put faces to the names that you might be interacting with because we want to make sure you know that you can just call us and we can help you work through the process. More than anything, we know that this goal, the goal of todays workshop is related to making sure that you are successful. We in San Francisco cant do the things we like to do, we cant help our most needy Community Members or folks that need a little bit of help without all of you. I want to say thank you on behalf of the city and county and we look forward to making sure to provide good information to you. With that, im going to turn it over to holly and i want to thank my staff in advance for their good work. Please know that in addition to this presentation that youre going to see today, we also have a separate area where you can ask oneonone questions as well. So please know that if you dont get your questions answered here or you have a burning question, its not the last opportunity you will have to interact with us. Thank you for coming and we hope you have an informative day today. Thank you. [applause] its an honor to introduce our next speaker, a San Francisco native and california elected office honorable malia cohen. She represents 10 million californiians in the second district, comprised of 23 amazing and diverse countries such as San Francisco county. As chair of the board of equalization, she is responsible for ensuring that the 70 billion property tax system works in a fair and efficient and effective manner. Please join me in welcoming malia cohen. [applause] thank you. Everyone good morning. I came in just from sacramento to be here to talk about my favorite subject, property taxes. I just want to thank all of you for being here this morning. I want to recognize carmen and her amazing staff for pulling this workshop together and just by judging by the number of folks that have come this morning for questions and answers, it sounds like theres definitely a need that we are filling. One of the things i have learned, ive been in this role for one year now, few people know about either what the assessor is doing or what the board of equalization is doing, until theyre in trouble or they need you. You know, its just like a typical fair weather friend. They dont know they need you until they need you. Im delighted to be able to present a few things to you. My name is malia cohen. I served eight years on the San Francisco board of supervisors. Just finished my first term as chair of the board of equalization. Its really a pleasure to be here, to be working with carmen and her team again. Carmen and i served on the board of supervisors together. So to be here to talk about and to support the Assessors Office, to discuss welfare exemption workshop is a privilege. I also want to highlight that the work performed by assessor carmen and the staff is truly important and very vital to our local government system. This work at the Assessors Office, they make sure that Nonprofit Organizations can continue to deliver their services at a Cost Effective manner. The way we participate in doing that Cost Effective manner is by ensuring that people do not have to pay property taxes and we know that San Francisco has a high property tax. Welfare exemptions are vital to ensure that properties used for charitable, religious, or hospital purposes are free from obligation to pay property taxes. The law clearly states that. So, its my pleasure to help start off this important meeting because the board of equalization oversees californias 70 billion property tax system. Thats the second highest tax revenue generator for local counties and local municipalities, the first being personal income tax which brings in 124 billion annually. Part of the boards responsibility in this process is to help facilitate organizational clearance certificates which establishes that your Nonprofit Organization qualifies for the welfare exemption from property taxes. The exemption is unique in that it is coadministered by the county assessor. There are two board equalization members here that will be speaking, i think tess and brian. Shoutout to you. So this is a two step process. First we review the organization, making sure youre eligible for the exemption, making sure youre following the rules an operating exclusively for charitable or a scientific purpose. The second step comes in by the county assessor. So later on today, you will have questions and we will have answers. We as the board of equalization specifically answer the question, is this specific property operated for religious, scientific, hospital, or charitable purpose. I can go on and on. There are some good actors and bad actors, like in most cases. Let me give you some fun facts to set the tone. So in 2019, San Francisco, office of economic and Workforce Development found there were over 6,600 Nonprofit Organizations operating right here in the city and county of San Francisco. 6,600. Thats quite a number. These numbers tell us a specific story. As of 2011, there are 282 evangelical churches, 93 main line protestant churches, 54 roman catholic, 27 uncharacterized churches, 17 orthodox churches, 28 other religious organizations, 56 buddhist temples, 17 synagogues, 5 hindu temples, 5 mosques, 1 shinto temple. So as you can see, each one of these religious organizations, if they meet the requirements would qualify for a welfare exemption. E. M. Im really giving you these numbers to ill strait that the welfare exemption is an essential part of maintaining californias Spiritual Health and our physical health and wellbeing when you think of hospitals and research institutions. Honestly im delighted to be here. This concludes my remarks. Its with great pride we kick off this years welfare exemption work shop. I hope you have a great day everyone. [applause] thank you. Thank you very much. Its my pleasure to introduce the panelists. We have derek, the manager of Public Service and exemption and nicole, director of Community Affairs. From the california state board of equalization, we have brian, senior specialist, property appraiser. Please give them a warm welcome. Thank you. [applause] good morning everyone, thank you so much for coming. We want to kick off this morning by once again welcoming everyone. My name is nicole. Im the director of Community Affairs for our elected Assessors Office. Were going to start with the basics for you tord. Just starting off with some learning objectives, what we hope you can take away from the road map to welfare exemption. Were going to take you through the filing process for the welfare exemption. Todays goal is to provide you a road map, step by step working with the b. O. E. And the Assessors Office here locally and derek will handle most of the technical pieces of that. We want to make sure to highlight for you key deadlines that you should have in your mind both for filing for your initial exemption, as well as maintaining year over year. Finally we want to give you a sense of what to expect from our office, whether its a piece of mail or a deadline coming up. We want to make sure you come away with a good sense of what you will be receiving from us and that you know very well where you can find all of us if you need help along the way. My first slide here was to introduce at a high level the county assessors function and we will go through the high level definition of what the welfare exception is. Chair cohen and assessor chu have done a lot of the work to introduce this. California has 58 counties. So each one of these counties has an elected assessor. The work that we do, although its a county level function, its directed in a lot of ways at the state level. First off we follow the state revenue and taxation code. Its the same across every county here in california. Second, we share the same standards and oversight body. This is the board of equalizati equalization. Its just to make sure were standardized across the state. Here locally, we generate 3. 3 billion in property tax revenue for our city on an annual basis. As the assessor mentioned, this goes towards local services and public education. Our property tax revenue is the single largest source of funding every year. Just to reiterate, we have three Core Functions on what the office does. We are the assessor so the vast majority of the staff Value Property for each years property taxes. Were also the recorder for our county, which means we are the official Record Keeper for San Francisco county. We record over 400 different document types and we do hundreds of thousands of these per year. Finally, the function that everyone is interested in today, we grant exemptions. So as we mentioned, we have a small but mighty team that does this work each year. Last year, they did the work to grant 16 billi 16 billion in ee and they go towards nonprofits, churches, schools, veterans, and many overs who need this assistance with their property taxes. So now ill take you through the actual formula for generating property taxes each year. So, the generation of property taxes on an annual basis is actually a partnership. So its a string of functions that are performed by multiple county departments city and county departments here in San Francisco. It all starts in our office, the Assessors Office. Our job is to determine the assessed value of all taxable property, within the city and county. From there, we multiply the value by the tax rate. That tax rate is 1 across the state but here in San Francisco, its usually a little bit over 1 . That amount will fluctuate year to year, depending on the level of the citys bonded indebtedness. So once we have assessed value times tax rate, there are Additional Special assessment fees and leans that are added on to your bill. With those, they come from a variety of different sources and agencies. These actually do not have to do with your taxes for your property. They are voter approved measures that are tacked on to the bill in addition to the property taxes and they put it there as a convenient means of all that funding on one go, in one bill, instead of sending multiple bills. Once we have all of this information, all of this is transmitted to the treasurer or Tax Collectors Office and their role on an annual basis is to calculate the bill, to send that bill out to the taxpayers and then to collect the revenue. We do this process on an annual basis. The following year, we start the whole thing again. Oh, today for the purposes of exemption, well be focusing on the majority of our time on the work of our office and how exemptions go hand in hand with the assessed value. Thank you nicole for that introduction and overview. My name is derek and i oversee the exemption unit here in the office of the assessor recorder. So i want to take this time to answer this next question. What is the welfare exemption . It provides a partial or full reduction in the taxable assessed value which will reduce the amount of property taxes you pay for real and personal property that is owned and operated exclusively to a Nonprofit Organization. Now, lets take another look at this equation. This section right here is where the exemption is applied to the land and improvements for Real Property and interest. This is also the spot where the exemption is applied to business personal property items like machinery, equipment, fixtures and leasehold improvements. Before we get into defining the welfare exemption, i want to talk you through the different property types we assess here as an office. There are three buckets that we think of when we think of different property types in our office. The first one is probably what most people think of when they think of property. This is called Real Property. This represents the land here in San Francisco county. The improvements or the structures and buildings that are built upon that land. Our second bucket is called business personal property. An easy way to think about this is that b. P. P. Is everything inside of that Real Property. For you its nonprofits, that would be your desks, your computers, your supplies and your fixtures. Officially the definition that we say here in the office is business personal property includes any tangible items like machinery, equipment, fixtures, and leasehold improvements held or used in connection with a trade or a business. All right, the final bucket that we think about when were assessing property is called posse possessery interest. So thats when we use Government Property for a private purpose. I want to unpack that a little bit. Its the least familiar of the property types. As a state, california grants an exemption for Government Property, which is used for a governmental purpose. In many cases, and in some of the cases of your own nonprofits, it can be a landlord. Their tenant could be using that property for a private purpose. Ill give you an example of right here in this building. Were in a public library, a government building, but just outside this theater is a cafe that subleases a space. With that a cafe, they are using it for their own private purpose. We assess it and we would consider it taxable. That is what possess ri interest is. Okay, now lets take a look and see how the exemption is handled a Real Property assessment. So imagine this, you are a Charitable Organization and you now have a valid organizational clearance certificate from the state board of equalization. You should qualify for the welfare exemption if youre the sole owner and operator of that building. Do you share that space with other nonprofits or for profit businesses . You may be qualified for the exemption based on the frequency of use by the other tenant. Are you engaging in any other activities this year, new improvements or construction from are you generating revenue from another fundraising event . Depending where you are, you may be qualified during the construction phase and for your revenue that you generate under unrelated tax income during the year. This does not disqualify for receiving the welfare exemption for this year. Now, same question and scenario, but now were going to look at how the exemption is handled under a business personal Property Assessment. Similar to Real Property, you should qualify if you are the sole user of the business personal property. Do you own multiple Business Property accounts . If the value of all your personal business accounts are less than 4,000, then you should be receiving a low value exemption from our office. If your value increases and exceeds 4,000, no worries, just file your welfare exemption if youre using your personal property for an exempted purpose. Lastly, the division will assess other users on the personal property and it is because of this your welfare exemption will not extend to the other users of the personal property. All right. So now lets take a look at possess ri interest. Just remember, possessory interest is Government Property used for a private purpose. You should qualify if youre the sole user of that space. Same question applies to our possessory nonprofit groups. Are you engaging in other activities this year . Are you generating extra revenue . Another fundraising event . Always keep in mind depending where you are with your renovation project, you may qualify in the construction phase and the business income you generate this year does not disqualify you from receiving the welfare exemption. Just like business personal property, other organizations leasing the space from the city . No worry, the possessory unit will receive its own separate assessment and its because of this the welfare exemption will not extend to the other users. So im going to start the next section of the presentation. Were going to talk you about how to apply for a welfare exemption. Chair cohen did a great job of summarizing this process, but i want to take it through visually here on a slide so you can see that there are two agencies which work together, hand in hand to grant the welfare exemption. We start at the state level with the california state board of equalization. As chair cohen mentioned, what the state is very keen to understand is whether or not you as an organization are eligible to receive a welfare exemption. The way that you work with the state is by applying for what is called an organizational clearance certificate or in some cases a supplemental clearance certificate. So once you started your work with the state, you will also work with us here locally at the county level. So you work with the Assessors Office. Now were looking for something slightly different than the state, than what we are focused on. Were focused on whether or not the use of your property is an eligible use for receiving an exemption. The way that you work with us here at the Assessors Office is by filing something that we call a first filing. One very Important Note before we get into the details on both the o. C. C. And the first filing is that your organization may not be approved for a first filing until you have approved you have been approved for your o. C. C. At the state level. Now im going to pass it over to our colleague with the b. O. E. , brian to talk you through the process for an o. C. C. Good morning, so im just going to briefly talk about some of the elements of an organizational clearance certificate or o. C. C. There are a number of requirements. If theres one thing you should take away from this, its that you should file for it. Most nonprofits do qualify for this. The issue is usually theyre just not aware of it, which is the purpose of todays conference. So, the welfare exemption is called the welfare exemption because its for Nonprofit Organizations that provide for the welfare of the community. More specifically, this is one of those requirements. It means theyre organized and operated for qualifying purposes, which according to revenue and tax services 214, means for charitable or science purposes. Okay, so nicole was mentioning a first filing form with the county Assessors Office with the state board of equalization. We have our own versions of forms. Many have filed for corporations and associations. If there are any l. L. C. S here meant to own property, that will be form b. O. E. Number two, this exemption are only for nonprofits that are owned and operated qualifying purposes. L. L. C. S qualify if theyre set up to hold title 2 property in a qualified matter. Low Income Housing also qualifies but thats complicated and we dont have time to talk about it up here but well be able to take questions after this. So just very briefly some tips when you apply. Most of our filings are incomplete simply because they dont have a complete claim packet. So just some tips on that. Include a copy of articles incorporation, all amendments, all of this is on the forms themselves and theres a checklist that goes along with it to help you. Just reiterating that. A copy of your tax and status letter under the i. R. S. , under code section 702b, copy of financial statements. If the claim form says audited or certified, if you have those, thats great. Otherwise, standard Balance Sheets will work. If youre seeking one for 2017, we want one year prior to that so thats 20162017, et cetera. So please make sure you describe the primary purpose of your organization and what you do. We are definitely going to check out your website. If you write see website. Its helpful for us to know what the purpose of your organization is and how you accomplish that through your activities. Lastly, theres some specific language requirements that the code requires most organizations have to amend their articles to meet these requirements. Its not a huge deal and it boils down to two sentences, just making you aware that it exists. For l. L. C. S, its similar, but there are nine, basically nine sentences, nine clauses they have to have. One the o. C. C. Is granted, thats it. Youre good with us. Unless we tell you its revoked or we needed a decisi additio documentation, it remains valid from you dont have to file with us every year like you have to do with the county. It will last 4 to 6 weeks is our processing time right now. So if there is a second thing you can take away from today, file sooner rather than later because it takes a while. All right, so now going back to the local level with the county, as i mentioned, your next step will be to file your first filing with the Assessors Office here. That form number, in case youre occurrence is form 267. Lets talk in more particulars about that. Theres three steps that you will under take. So the first one is to fill out the form itself. We ask that folks fill out the form completely and fill out a new form for every new property for which youre applying for an exemption. After that, you will wait till you hear there from our office and we will reach out to schedule an inspection. What were keen to learn from you is whether these activities occurring on the property is an eligible use. Its helpful for our team to come out to your site, meet you, and see how it is that you are using the property. The final step is to wait for a letter from our office. This letter is called a 267f, thats the formal name for it. Its really a letter with findings that will let you know the outcome of your application. It state it is level of the exemption upon review of your application combined with your inspection. Derek will take you through the particulars now. Thank you. Now im going to go over our first filing application for a welfare exemption but before we get started, i know this is small and difficult to read. If you want to follow along with us, we have provided sample copies of the form 267 in your packet. I will begin. So i want to now go over some common questions we hear daily from our nonprofits that are filing a welfare claim in our office for the first time. For this slide and the next few slides, lets pretend the Nonprofit Organization is up and running and now we have a valid organizational clearance certificate issued by the state board of equalization. This highlighted section is where you would write your o. C. C. Number that is issued by the board of equalization. If youre still in the process of applying for an o. C. C. , just let us know. Remember, we can continue the op occasion process with your organization, but we will not be able to approve the exemption until you have a valid o. C. C. Now lets move on. Dereks nonprofit purchased a new building on january 5th, but dereks nonprofit started providing services to the community today. Todays date is what you would put on this line. This date represents the date that the exempt activity began. Were looking for your activity on the property. This can be direct services to the public or it can be the start of your new construction project. Therefore you would either list the date you opened your doors or the date you broke ground on the construction site. What property types should dereks nonprofit apply for the exemption . If dereks charitable nonprofit is the sole property, you should check all the property that applies. This is the land and improvement before business personal property or if youre operating on taxable possessory interest. So what should i do the im the owner and operator of the Real Property but im sharing the space with another nonprofit . This highlighted section is where you will identify any other users of your property. Please note, by checking yes to this question, you will be instructed to complete a supplemental form boe form 267o and this is used by our office to determine if the other occupants are covered under the welfare exemption. Now that we know about the other users, lets move on to the other uses of the property. This highlighted section is completed to provide more information about your nonprofits uses of the property. For each use, it is very important to look out for the Supplemental Information and or forms that are needed when you check yes to a question. For example, lets go back to dereks nonprofit. We provide low Income Housing under question 5, letter c. I would check yes and again i will be instructed to provide more information about the low Income Housing portion of my property. By doing this, i would complete form 267l and this form is used by our office to determine the total number of low Income Housing units covered under the welfare exemption. Financial statements in this highlighted section is required for all first filing applications. Remember to attach a copy of your balancing sheet and for any reason this is not available at the time you file your welfare exemption claim, make a note and lets us know when it will be available for you to submit. After youre done. You should not forget the most important section of the application. It is certification. Dont forget to sign and date the form before you submit. The application is not complete until the section is filled out. In general, the deadline to submit all of this information to our office is february 15. Thats the date you should always remember. February 15. Why is the february 15th date important . Well, its important for a reason and that reason is if you do not renew your welfare exemption on time you can lose your exemption and you will receive a property tack bi ta bill. Thats why its very important to remember that date. Now were going to take you through the process of renewing on an annual basis. I think its important for everyone to have a basic understanding of what our annual timeline looks like as the Assessors Office. Im going to take you through some key dates and let you know what to expect at different intervals throughout the year from the city. So the first date, actually, january 1st, we start the year with a date we internally call lean date. So for any type of property that you may have, whether its Real Property, business, personal, property or possessory interest, we will look at the assessed value of that property, as of lean date january 1st, and that is what we will base the Property Taxation upon. Then we just heard about this next date, very important for all of you. This is february 15th, this is the exemption deadline. You can see the rational behind the timing there. You will let us know that you are claiming for an exemption by february 15th relative to the assessed value of the lean date of that same year, january 1st. Next we have june 30th, which in our office we call roll close. The time between february 15th and june 30th is our processing time. So to give you a sense, our Exemptions Team is working on an average of 3,500 claims during this time. So once we done all that work, we hit june 30th. This is the date which the Assessors Office across the state close their books with a completed Property Assessment roll for the entire county and thats the roll we furnish to the Tax Collectors Office for the Property Taxation for the year. So now from here the process bifurcates and it depends on the property type you have that will direct what it is that you receive from us. So ill go through them one at a time. I want to start with Real Property. So if you are an owner of Real Property, what you can expect is in july, you will receive a notice of assessed value from our office. So this is a mailing. You may recognize year after year, this is not a bill. They will tell you two things, it will have the assessed value for the property for that year, and it will also have the level of the exception that you will be receiving that year. So its important that you check your n. A. B. To make sure you are receiving the level of exception you were anticipating for the year. Next you receive the tax bill in october from the treasurer Tax Collectors Office. That bill is due in two installments, the first on december 10 and the second on the following april 10. So this is what you would anticipate for Real Property. So for business personal property and possessory interest, its a little different. The timeline for receiving the notice, the bill, and having the bill due is shortened. So with this timeline, you can our normal hours of operation. 8 00 a. M. Too 5 00 p. M. Now when you submit your sorry. Now when you submit your annual claim, please use your annual claim form, which is the 267a and use this form to note any changes to your organization for this year. Now you will note any changes by february 15th and you will let us know that you are still requesting an exemption and you can note any additional changes. These changes can be for example an increase in your Affordable Housing units, a use of vacant space or a tenant is moving out of your location. This can be changes to your organizational structure, changes to your articles of incorporation or bylaws, or you would also use this form to report any new construction in progress. So if at any point you have moved to a new location, you would report that on your 267a, letting us know youre no longer occupying that space and fill out a first filing application to report the new location where youre operating. Sorry. Thanks. So, remember the notice of assessed value is mailed annually in july and this is where youre going to find your propertys assessed value. The property assessed value is used to determine the property taxes for the upcoming year. Lastly for our business personal property accounts, dont forget to file your annual b. P. P. Statement in april and this is the form 571l. I should say, sorry we should have said this at the top, but well be happy to send out this presentation to everyone. Dont worry, youll receive a copy of all these details. All right, so this is a question that our office gets on a regular basis, which is ive done my first filing, ive done my o. C. C. , i maintained on an annual basis, so why after all that do i still receive a property tax bill . To answer that question, i want to draw your attention back to this formula which we discussed at the top of the presentation. So, as we mentioned, we are talking about assessed value and it applies to that assessed value. So what that looks like in regards to this formula is that it will exempt your assessed value and remove the tax rate. The welfare exemption does not apply to the Additional Special assessments fees and leans on the bill. So a reminder from that previous slide, these are voter approved measures that are essentially added to the bill as a convenient method for collection, but theyre not relative to your assessed value. When you do receive the bill, its these special assessments fees and leans is what youre being charged for on an annual basis. All right. Ill take you through a couple of images of the bill itself so you know what youre looking at when you receive your bill. So first off, these line items that are highlighted are where you will find your special assessment fees and leans. Those are the voter approved measures that youre still charged for regardless of whether or not you have been approved for your welfare exemption. These are administered by a variety of different agencies. Theyre not administered by the Assessors Office or by the state board of equalization. If you have questions about each of these charges, the bill does include a phone number, which you can call to understand more specifics on each of the things youre being billed for and if there are potential savings that you may be eligible for. While we have an image of the bill up, i also want to share where you would look if you were looking to make sure you received your welfare exemption. So right on this line here where it says less other exemption, that is where you should be seeing your welfare exemption applied to your bill. So, on this sample bill here, apologies that its small, but this individual organization is not receiving a welfare exemption because that line is blank. Now i would like to take this time to share some best practices when youre filing your welfare exemption. So the first one, advice on filing. Submit on time or early before february 15th and you can send your welfare exemption directly to us via email. This can be your first filing our your renewal, directly to you are inbox at asrexcepti asrexceptionunit sfgov. Org. Dont wait for the bill. If youre filing the first claim with the office, this will be the findings sheet. If its renewal, you will see this on your notice of assessed value sent in july. Youll look at that exception exemption line. You can visit our website 24hours a day, 365, where you will find forms. Exemption information, property info and recorded documents will be on our web page. At any point you want to speak to a specialist, you can give us a call at 4155545596 or you can come to city hall and visit our main Office Located in room 190. Thank you, lets give our presenters a warm round of applause. [applause] great. So this concludes the first part of our program. We will be starting our second part with the question and answer session across the hall in the latino room hi. My name is carmen chiu, San Franciscos elected assessor. Buying your first home is a big deal. For many of us, its the single largest asset that well own. Thats why its really important to plan ahead for property taxes so that there are no surprises. A typical question new homeowners ask is what is a supplemental tax. So understand supplemental tax, we need to start with proposition 13. Under californias prop 13 law, the value we use to calculate your property tax is limited to a 2 growth peryear, but when ownership changes, prop 13 requires that we set a properties assessed value to market value. The difference in value between the previous owners value and the new value is the supplemental assessment. How does the supplemental assessment translate to the tax you need to pay . Supplemental tax is calculated by applying the tax rate to the value and then prorating it for the amount of time that you owned it in that tax year. In generale, the tax rate is roughly 1 . Lets walkthrough an example together. Here dan is the original owner of a home with a prop 13 protected value of 400,000. With a tax rate of 1 , he pays 4,000. Dan sells his home to jennie at a market rate of 700,000. In this case, jennies home will be reassessed to 700,000, and jennie is responsible for paying property taxes at that level from the time she first owns it. Many times, people might have already paid their property taxes in full by the time they sell their home. In that case, dan has paid 4,000 in taxes already for the full year. Jennie would likely payback dan through escrow for her share of the 4,000, depending on the proportion of the tax year she owns the home. However, shes also responsible for paying taxes at the higher market value from when she begins to own the home. How does that work . Lets say jennie owns the property for nine months of the first tax year, which is approximately 75 of the year. During the escrow process, shed pay dan back 75 of the 4,000 he already paid, which is 3,000. On top of that, she would owe taxes at the higher rate for the proportion of the year she owned the house. In this case, she owes the amount not already billed through dan or 700,000 minus 400,000, multiplied by a tax rate of 1 , and multiplied again by 75 to reflect the time she owned the home in that tax year. Here, jennies supplemental tax is roughly 2,250. Going forward, jennie will be billed at her new reset prop 13 value. Are you still with us . If this isnt complicated enough, some new owners might receive two supplemental tax bills, and this has to do with the date that you transfer property. But before we get to that, you first need to understand two concepts. First, what is a fiscal year . In california, local government runs on a fiscal year. Unlike the calendar year, where the year begins on january 1, a fiscal year begins in the middle of the year, on july 1. Property tax follows the fiscal year cycle. Second, state law requires property be valued as of january 1 every year, in other words, new years day. The value as of january 1 is used to calculate property taxes for the upcoming fiscal year. This means Property Value as of january 1, 2018 will be usedtor fiscal year 18 used for fiscal year 1819 covering july 2018 through june 2019. Similarly, the value of january 1, 2019 will be used for the fiscal year covering july 2019 through june 2020. Now back to whether you should expect to receive one or two supplemental tax bills. The rule of thumb is that if the property transfers happens in the first half of the fiscal year, in other words between july and december, then you should expect only one supplemental tax fill. If the transfer happens in the second half of the fiscal year or between january and june, you should expect two supplemental tax bills. Heres the reason why. Using dan and jennies example again, dans 400,000 value as of january 1 is used to set the tax bill for the following fiscal year beginning july through june of the next year. Jennie buys the property from dan in october. The taxable value is reset to 700,000 as of october, but the bill issued still reflects dans lower value. In this case, jennie would expect to receive one supplemental or catchup bill to capture the difference between her assessed value and begans fr begans dans from october through june. Because of january 1 we already know of the sale, we would have used the following year to set jennies property taxes and no other supplemental bill should be received. However, if dan sells the property to jennie in march, instead, jennie should expect two supplemental bills. Like before, jennie would receive one supplemental bill to cover the time in which she owned the home in the current tax year from march to june. But because as of the next january used to set the tax base for the following tax year, dan still owned the home, the following years entire bill still reflects the values not updated for jennie. In this instance, jennie receives a second supplemental for the following year covering july through june. After the supplemental tax bills, new owners should receive only one regular tax bill peryear going forward. Remember our office values the properties, but billing and collections are handled by another Organization Called the treasurer and Tax Collectors Office. If youd like to learn more, please visit our website at sfassessor. Org. Thank you for watching. Once i got the hang of it a little bit, you know, like the first time, i never left the court. I just fell in love with it and any opportunity i had to get out there, you know, they didnt have to ask twice. You can always find me on the court. [ ] we have been able to participate in 12 athletics wheelchairs. They provide what is an expensive tool to facilitate basketball specifically. Behind me are the amazing golden state road warriors, which are one of the most competitive adaptive basketball teams in the state led by its captain, chuck hill, who was a National Paralympic and, and is now an assistant coach on the national big team. It is great to have this opportunity here in San Francisco. We are the main hub of the bay area, which, you know, we should definitely have resources here. Now that that is happening, you know, i im looking forward to that growing and spreading and helping spread the word that needs that these people are here for everyone. I think it is important for people with disabilities, as well as ablebodied, to be able to see and to try different sports, and to appreciate trying different things. People can come and check out this chairs and use them. But then also friday evening, from 6 00 p. M. Until 8 00 p. M. , it will be wheelchair basketball we will make sure it is available, and that way people can no that people will be coming to play at the same time. We offer a wide variety of adaptive and inclusion programming, but this is the first time we have had our own equipment. [ ]