Logo courtesy of Butte County

OROVILLE, CA (MPG) – Butte County officials are recommending no changes to the county's Williamson Act direct charge, saying the revenue remains an important part of the county's budget as officials work to maintain public safety and library services.

Deputy CAO Kevin Taggart presented the issue to the Butte County Board of Supervisors on June 9 during a review of the county's participation in the AB 1265 direct charge program.

The Williamson Act, formally known as the California Land Conservation Act, provides property tax savings to landowners who agree to keep their land in agricultural production or open space rather than development. In Butte County, nearly 1,500 parcels encompassing more than 200,000 acres are enrolled in the program, Taggart said.

From 1972 through 2009, the state reimbursed counties for property tax revenue lost through Williamson Act contracts. After subvention payments were eliminated in 2010, the California Legislature approved Assembly Bill 1265, allowing counties to impose a direct charge equal to 10 percent of a participant's Williamson Act tax savings.

Landowners continue to retain 90 percent of the tax benefit, officials said.

Taggart said Butte County's decision to adopt the direct charge was supported at the time by both the Farm Bureau and the Cattlemen's Association.

The direct charge now generates approximately $650,000 annually for the county's general purpose revenue fund, which supports discretionary services including public safety and libraries.

Taggart warned that eliminating the direct charge would create an immediate and ongoing loss of revenue that would require immediate cuts to services only recently restored.

"The change would effectively reassign Measure H revenue to Williamson Act properties and be a contradiction of promises made to the voters," Taggart told supervisors.

According to county estimates presented during the meeting, replacing the lost revenue could require reductions equivalent to 4.5 deputy sheriff positions, 6.25 correctional deputy positions, 7.25 probation officers, 3.9 deputy district attorneys or 8.5 library positions. The library reduction would represent about 21 percent of current staffing and could require reduced operating hours

Taggart said the county spent years struggling with structural budget deficits before voters approved Measure H, the countywide sales tax measure that restored funding for sheriff's patrols, jail staffing, probation services, district attorney positions, fire protection and libraries.

He also noted that recent changes in state capitalization rates used to assess Williamson Act properties are expected to lower assessed values on participating agricultural land. While that means lower tax bills for landowners, it also reduces property tax revenue received by the county.

Given those declining revenues, Taggart said staff is not recommending any change to the AB 1265 direct charge at this time.

The Board of Supervisors received the report and took no action on the matter.