The following was sent in by George, CDF / BEU, in response to a discussion of SRA Fees on theysaid 10/13/03.
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SRA Fees
Questions & Answers
Updated 10/20/03

Certain California taxpayers will be billed an additional fee for fire protection in their property tax notice for 2004-05. The charge will be $35 per year for a total of $70 for the 2003-04 and 2004-05 fiscal years for each parcel of land located in the State Responsibility Area (SRA). Many property owners have questions about this new process. The following provides some clarification: 

Q: What is the SRA Fire Protection Benefit Fee?
A: In the 2003-04 Budget bill, the fee is referenced as a "State Responsibility Area Fire Protection Benefit Fee". Except as specifically exempted, this yearly $35 fee will be added to the tax assessment bill of all parcels in the State Responsibility Area (SRA) of California. The fee is being collected to replace a $50 million cut to the General Fund fire protection budget of the California Department of Forestry and Fire Protection (CDF). 

Q: Who will be charged this fee? 
A: The fee will be charged to the owner of every parcel of land in the State Responsibility Area (SRA). Approximately one third of our state (roughly 32 million acres) is considered SRA. 

Q: What is SRA? 
A: State Responsibility Area (SRA) is defined as those areas for which the responsibility of preventing and suppressing fires is primarily that of the State of California. These areas cover timber, vegetated, and adjacent rangelands that provide watershed value. They do not include federal ownership or incorporated cities. SRA is typically the more rural portions of the state including grassy oak woodlands, timber country and small communities. 

Q: How will the fee be applied? 
A: Except as specifically exempted, the fee will be charged to each parcel of land located, in whole or in part, within state responsibility land. If any portion of a parcel is located within SRA, the fee is applied to the parcel. The size of the parcel has no effect on the fee. All parcels or portions of a parcel are charged the same fee.

Q: If the annual charge is $35, why is the first year's bill $70?
A: The legislation is effective too late to be added to the 2003-04 tax bill. Therefore, the first bill will represent two years (03-04 and 04-05). 

Q: How does collecting this fee replace the CDF budget cut?
A: Each county must remit the collected fee to the state within 30 days of receiving it.
The fees will be deposited into a new fund, the State Responsibility Area Fire Protection Fund, created in the State Treasury.

Q: Will there be parcels that are exempt from the fee? 
A: Parcels owned by a public agency and located within the boundaries of the public agency, and parcels exempt from property taxes. 

Q: Who will collect the fee?
A: The fee will be collected by each affected county in the same manner and at the same time the county collects the secured property taxes. CDF shall notify each county treasurer by June 30, 2004, of the amount it anticipates owners to remit for the 2003-04 and the 2004-05 fiscal years.

The county may increase the benefit fees to cover its reasonable cost of levying, collection, and apportionment and retain that increased amount. For example, if the county charged 25 cents per parcel to complete its work, the levy on the property owner's tax bill would then be $70.25. All county charges are in addition to the SRA Fee on the tax bill and are retained by the county.

Q: Has this happened before?
A: Although a fire protection fee has been proposed several times in the past, this is the first time that it was approved by the legislature.

Q: Is CDF in favor of the fee?
A: The department has not taken a stand on this provision in the budget. We understand that these are extraordinary times and that this is one way that the legislature believes we can address the budget deficit. 

Q: What would the impact be to CDF if the $50 million were not recovered?
A: This cut represents 12% of CDF's base budget. CDF would have to cut its fire protection forces accordingly. 

Q: If you can't recover the money until the next tax cycle, what will CDF do for fire protection in the meantime?
A: The legislation also authorizes CDF to borrow $50 million from the General Fund for fire fighting purposes until the funds are replaced. 

Q: Is this a permanent fee? 
A: The legislation clearly authorizes fees for the 2003-04 and 2004-05 fiscal years. However, the bill is silent about authority to collect it beyond that time. Also, SB 1049 requires CDF to assemble a group of interested stakeholders and conduct a study of various aspects of the State's fire protection system. The results are due on January 1, 2006. 

Q: How will all of this affect CDF's firefighting response?
A: This fee provides a funding source for CDF's firefighting budget and it makes CDF whole. With this fee, CDF will continue to protect the people of California from fire and other emergencies with the same level of service they have come to expect.

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