Property Tax Admin Fee Cost Recovery

Property Tax Administrative Costs (PTAC) also known as SB2557 costs became law in 1989-90 to provide a formula for counties to be reimbursed for their costs for assessing, billing, collecting and distributing property taxes. Revenue and Taxation Code Sections 95.2 and 95.3, authorize the counties to recover these costs from all taxing agencies except schools and ERAF.

The calculation of the Property Tax Administration Fee (PTAF) is a complex, detailed, and involved process performed by the automated property tax system. Allocation factors are determined based on property tax revenues. PTAF is then recovered from applicable taxing entities.

Recalculation of PTAF based on the ruling in the case of City of Alhambra vs. County of Los Angeles had to be performed manually. Triple Flip and VLF Swap revenues were removed from the allocation bases for the fiscal years 2006-07 through 2011-12. Revised allocation factors were determined for each year then applied to the net property tax administration costs for those years. The difference in what was charged and the recalculated PTAF overpayment is the amount to be refunded.

The calculations for a representative year, 2011-12, are shown in the PDF files at the links shown. The other years are similar in methodology.