Pismo Beach was not paying property taxes, activist finds

August 20, 2025

By KAREN VELIE

It appears Pismo Beach is going to be responsible for another cost associated with the controversial recycled water project Central Coast Blue – property tax bills.

Activist Julie Tacker, a vocal critic of the costs associated with Central Coast Blue, discovered Pismo Beach was not paying property tax on two parcels they purchased for the water project. Tacker then reported her findings to Jim Hamilton, San Luis Obispo County’s Auditor-Controller-Treasurer-Tax Collector.

Even though government-owned properties are not generally subject to property taxes, if the property is owned in another jurisdiction, the government agency owning the property is required to pay property tax.

After expending millions of dollars and thousands of hours of time, Arroyo Grande and Grover Beach pulled out of Central Coast Blue. Delays and planning issues resulted in the cost of the project skyrocketing from an estimated $29 million to a current estimate of between $135 million to $158 million.

Pismo Beach is continuing on with the project, but without Grover Beach as a partner, and they will now need to pay property taxes. Portions of the tax go to the state, the county and the City of Grover Beach. More than 30% of Grover Beach’s general fund money is paid through property taxes.

Hamilton and SLO County Tax Assessor Tom Bordonaro looked into Pismo Beach’s tax responsibility. Bordonaro is now reassessing the properties because of the change in ownership, before he sends a notification to City of Pismo.

Because we believe the public needs the facts, the truth, CalCoastNews has not put up a paywall because it limits readership. However, we are seeking qualification as a paper of record, which will allow us to publish public notices, but it requires 5,000 paid subscribers.

Your subscription will help us to continue investigating and reporting the news.

Support CalCoastNews, subscribe today, click here.