Pajaro Valley Healthcare District
Bond Repayment Tax Rate Correction
January, 2026
The County Property Tax Team, consisting of the Assessor, Auditor-Controller, Treasurer-Tax Collector Offices, is sharing information with property owners in the Pajaro Valley Healthcare District about a tax rate correction that is currently underway.
Background:
The District was created by state law (Senate Bill 418), and its boundaries became effective beginning with the 2025–26 property tax year. On March 5, 2024, voters approved Measure N, which allows the District to issue up to $116 million in bonds. These bonds are repaid through property taxes on parcels located within the District.
What happened:
Due to a software error, approximately 5,000 parcels were not correctly included in the District when the tax rates were calculated. As a result:
- About 5,000 parcels were not charged at all, even though they should have been.
- About 19,000 parcels were charged too much, because the total bond cost was spread over too few parcels.
Rapid Response:
The error was discovered in October, shortly after the 2025-26 annual tax bills were mailed. Staff from all three departments took immediate action to diagnose the issue, coordinate a solution, and ensure affected taxpayers were made whole.
Next steps:
- Corrected tax bills will be issued for the parcels that were undercharged.
- Corrected tax bills will be issued for parcels that were overcharged.
Affected Property owners will receive new bills or refunds when appropriate.
Going Forward
The County Property Tax Team has completed a comprehensive review of new district formations and are collaborating to ensure that this type of error does not occur again.
The County is committed to maintaining accurate, transparent, and reliable tax administration for all taxpayers.
FAQs
Pajaro Valley Healthcare Bond Tax Rate Correction FAQs
Sample Letter – Notice of Correction to Property Tax Bills