Martis Valley Tax Information
The Truckee Fire Protection District is evaluating revenue sources and options in order to support its ongoing and future fire protection and emergency response services, with special emphasis on the area of the District that does not currently contribute ad valorem (AV) property taxes (“Martis Valley annexation area”) in Placer County. Large growth has recently occurred in the Martis Valley creating demand to improve and maintain fire and emergency medical services without a corresponding source of revenue. The information below summarizes an analysis of the tax base, property ownership and registered voters in the Martis Valley.
In 1974, the Truckee Fire Protection District approved Resolution 7-74, by which the District annexed a portion of the Martis Valley and imposed a property tax in this annexed area that applied to improved property only, and not to undeveloped land. From July 1975 to June 1978, these properties remained undeveloped, and the District did not receive ad valorem property taxes from these properties.
When Proposition 13 passed in 1978, property tax allocations for public agencies were recalculated to be “the average amount of property tax revenue” an agency received “in the three fiscal years before 1978-79.” Since the average tax allocation for the Martis Valley annexation was zero for the three prior fiscal years and therefore, the District was not entitled to receive property tax allocations for the Martis Valley annexation properties as they were not previously taxed.
Consequently, Proposition 13 reduced the District’s anticipated property tax revenue for improved property, and eliminated the District’s ability to collect future ad valorem taxes on improved properties within the Martis Valley annexation area. These Martis Valley properties are in Placer County and identified by tax rate area codes (“TRAs”) assigned zero percent (0%) ad valorem taxes. They are referred to as “No Pay TRAs”.
The District has explored the possible implementation of a Community Facilities District (“CFD”) with an associated special tax measure to provide revenue from these Martis Valley “No Pay TRAs”. Currently, the District is working with Placer County to explore the possibility of a tax share resolution.
More information on Placer County No Pay TRA Statistics as of 2017
Currently, there are 12 TRAs for which the District receives no ad valorem (“AV”) property tax revenue. These TRAs were identified using the Property-Related Tax Rates table from the Placer County Auditor’s Office. Figure 1 below is the current list of the No Pay TRAs in Placer County and the 2016-17 Assessed Value for the properties within the TRAs:
In Placer County, the District receives an average of 11.0814% of the 1% of assessed value. Based upon this, it is estimated that the District would have been receiving an additional $2,119,155 in AV from the No Pay TRAs. Currently the burden to support fire and emergency medical services in the Martis Valley rests on all of the other paying Tax rate areas. Exhibit A details the District’s share of the 1% AV by TRAs within the District boundaries.
Some of the “No Pay” Tax Rate Areas have been mitigated through special taxes over the years. One example is, the Fire District, in cooperation with property owners in Sugar Bowl, implemented a special tax for $358 per year on existing and future development to offset the eliminated property taxes and support fire and emergency medical services in their area.
Approximate number of Property Owners, Registered Voters, and Precinct Data in the No Pay TRAs as of 2017:
Number of Property Owners (Residents, Non-Residents, and Public parcels) = 1,095
Number of Voting Precincts = 8
Approximate Number of Registered Voters within those Precincts = 221
Number of Registered Voters who are Property Owners: 135
The Fire District is attempting to create fiscal stability to support the current and future fire and EMS needs. The District strives to create a fiscally responsible, sustainable model while planning for economic fluctuations and new demands.