CFBF supplies form needed to protest water-right 'fee'

Holders of water-right permits and licenses have received notices about their "fee" for the 2014-15 fiscal year—and the California Farm Bureau Federation once again encourages those holders to file protests when they submit their payments.

The state Board of Equalization mailed "Notices of Determination" for the "fee" on Nov. 4.

CFBF considers the "fee" to be an unconstitutional tax on water rights permits and licenses, and has challenged the "fee" in court. Lawsuits filed by Farm Bureau and others seek refunds of all the "fees" paid by holders of water right permits and licenses—a sum that now totals in the tens of millions of dollars.

From the time the "fee" was first imposed in 2003, CFBF has recommended that Farm Bureau members pay it under protest. The protest document, known as a "petition for reconsideration," must be filed with the State Water Resources Control Board along with a copy of each Notice of Determination. A sample petition is available on the CFBF website at www.cfbf.com.

The water board must receive a protest within 30 days of the bill date. For example, for bills dated Nov. 4, 2014, the receipt deadline is Dec. 4.

CFBF Associate Counsel Carl Borden said filing the petition could improve the chance that a water right holder would receive a refund of the amounts paid, with interest, if the "fee" is ultimately ruled invalid.

In its lawsuit, Farm Bureau said the fee violates Proposition 13, the voter initiative passed in 1978 that requires legislation resulting in new or increased taxes to be approved by a two-thirds vote of both the California Senate and Assembly. The bill imposing the water right "fee" fell far short of that standard in both houses of the Legislature.

Farm Bureau contends the water right "fee" amounts to an unconstitutional tax, because the amount charged far exceeds the cost of the benefits received and burdens imposed by those who are billed for it.

Last November, Sacramento County Superior Court Judge Raymond Cadei issued a statement of decision ruling the "fee" invalid. Due to an appeal of that decision filed by the state of California, the case has returned to the 3rd District Court of Appeal, where attorneys are filing briefs in the case. Borden said resolution of the longstanding court case may take another couple of years.