The California State Board of Equalization (BOE) has unanimously adopted the $167.2 billion in state-assessed property values for 322 companies, including utility and transportation entities. This decision will result in approximately $2.8 billion in property tax revenue for California’s schools and local communities in the upcoming fiscal year.
BOE Chairman Ted Gaines emphasized the importance of this action, stating it supports essential services in schools and communities. While most property assessments in California are conducted by county assessors, the BOE is mandated by the state constitution to assess certain public utilities, regulated railroads, and intercounty pipelines directly.
These properties are exempt from Proposition 13, which limits property tax increases, and the BOE is responsible for determining the fair market value of these unitary properties annually. This valuation considers various factors, including market conditions, income generated, and replacement costs, as of the January 1 lien date.
For the fiscal year 2025-26, the total assessed value has increased by 8.4 percent, or $13 billion, resulting in an additional $218 million in tax revenue. County governments will utilize these values to levy local property taxes accordingly.
Further details on state-assessed property values and the State-Assessed Properties Program can be found on the BOE website.
The California State Board of Equalization, established in 1879, is unique as the only elected tax board in the United States. It comprises four Equalization District Members and the State Controller. The BOE’s responsibilities include overseeing county assessors to ensure consistency in assessment practices across the state, directly assessing certain properties, and managing various taxes, thereby playing a critical role in property tax administration and ensuring equitable assessments for schools and communities.
