GONZALES — Monterey County officials have confirmed an administrative error in the implementation of a 2020 Gonzales Unified School District (GUSD) bond measure that resulted in inaccurate property tax charges for nearly 3,000 parcels over the past four years — with approximately $1.8 million in incorrect tax levies.
The issue, discovered by the Monterey County Auditor-Controller’s Office earlier this year, involved Measure K, a school bond measure approved by GUSD voters in November 2020 to fund upgrades and repairs at local schools. The mistake led to an estimated 2,100 parcels being overcharged and 850 parcels being undercharged between fiscal years 2021-22 and 2024-25.
“This grave error impacts approximately 3,000 properties within the Gonzales Unified School District boundaries,” said Supervisor Chris Lopez, chair of the Monterey County Board of Supervisors, whose District 3 represents the region. “I am perplexed that this was not brought to light earlier. A third-party review of this key process within the Auditor-Controller’s Office is warranted and necessary to affirm that we are accurately levying property tax assessments per the will of the voters.”
According to County Auditor-Controller Rupa Shah, the error stemmed from a misapplication of bond repayment calculations for Measure K. Instead of applying the appropriate tax rates separately to the broader GUSD boundary and the smaller School Facilities Improvement District No. 1 (SFID) within it, both tax rates were mistakenly applied only to properties within the SFID. As a result, taxpayers in the SFID area were double-billed, while those in the remainder of the district were not billed at all.
The impacted parcels saw mischarges ranging from $150 to over $1,000 per year, depending on assessed value. The estimated fiscal impact of the error is $1.8 million, according to the county.
Shah said the mistake was discovered in January 2025 during a review of property tax assessments. The Auditor-Controller’s Office worked with its software vendor, Megabyte, to trace the source of the issue. County officials were formally notified in June.
“I apologize to the impacted property owners, acknowledge the implications of this administrative error, and firmly commit to its rectification,” stated Shah in a county news release on June 24. “I welcome a third-party review and its recommendations to identify potential system gaps and planned constructive audits of our system processes.”
The county provided an update on the correction process during its weekly news briefing on June 25. Shah, along with Assistant Treasurer-Tax Collector Jake Stroud, outlined next steps for notifying property owners and correcting the tax records.
Refunds to overcharged property owners will be issued automatically and are expected to be completed by August — no action is required by property owners to receive a refund. Notices to undercharged property owners are now being mailed. The County Treasurer-Tax Collector’s Office will issue revised bills, and fee-free payment plans will be available.
County leaders emphasized that the error originated within the Auditor-Controller’s Office and did not involve GUSD or the City of Gonzales.
In response, the Board of Supervisors has ordered a third-party audit of all bond-related assessments implemented by the Auditor-Controller’s Office. The audit will verify current processes and recommend improvements to prevent future errors.
“This error will be rectified, impacted property owners will receive clarifying information, and we will work with those that need assistance to understand the changes to their property tax bills,” Lopez said.
The County has prioritized four immediate actions:
1. Notify all affected property owners in writing;
2. Host a town hall in Gonzales to answer questions from the public;
3. Expedite reimbursement to those who were overcharged; and
4. Establish fair repayment plans for undercharged property owners.
For more information, the County has launched a dedicated webpage with FAQs and updates at tinyurl.com/GUSDmeasureKfaq.
UPDATE (7-2-25): A town hall meeting with county officials has been scheduled for Tuesday, July 8, from 6:30-7:30 p.m. at Fairview Middle School gym, 401 Fourth St., in Gonzales.
