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AB-920 Property taxation: tax bill information.(2013-2014)

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AB920:v96#DOCUMENT

Amended  IN  Assembly  May 07, 2013
Amended  IN  Assembly  April 22, 2013
Amended  IN  Assembly  April 09, 2013

CALIFORNIA LEGISLATURE— 2013–2014 REGULAR SESSION

Assembly Bill
No. 920


Introduced by Assembly Member Ting

February 22, 2013


An act to amend Section 5151 of, and to add Section 2611.8 to, the Revenue and Taxation Code, relating to taxation.


LEGISLATIVE COUNSEL'S DIGEST


AB 920, as amended, Ting. Property taxation: tax bill information: interest on refunds. information.

(1)Existing

Existing property tax law requires that each county tax bill, or a statement accompanying that bill, include specified information.
This bill would additionally establish the Property Tax Transparency and Accountability Program as a pilot program which would, commencing with specified fiscal years, require participating counties to provide specified information in each county tax bill, including information that indicates what percentage of the general ad valorem property tax is allocated to each local government entity, as specified, and a comprehensive account of all the services funded by local governments, as specified. This bill would additionally require those participating counties, after the cessation of the pilot program, to provide the Legislature with a report relating to the program, as described.
By imposing a new duty upon local tax officials with respect to information required to be included in each county tax bill, this bill would create a state-mandated local program.
 The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to these statutory provisions.

(2)Existing property tax law requires the payment of interest on property tax refunds at the greater of 3% per annum or the county pool apportioned rate.

This bill would eliminate the requirement of the payment of interest on those refunds at 3% per annum and would instead require payment at the county pool apportioned rate.

Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: YES  

The people of the State of California do enact as follows:


SECTION 1.

 The Legislature finds and declares all of the following:
(a) The general ad valorem property tax supports a large portion of the public services provided by local governments.
(b) For many taxpayers, the connection between the general ad valorem property tax and the public services they receive is not clear. While each parcel tax on a county tax bill is itemized, the general ad valorem property tax, which is usually the larger amount, is not.
(c) Increased transparency, by requiring a list of services funded by the general ad valorem property tax to be listed on the county tax bill, will promote taxpayer understanding of how the general ad valorem property tax is used by local governments in the tax rate area in which the taxpayer’s property is located.

SEC. 2.

 Section 2611.8 is added to the Revenue and Taxation Code, to read:

2611.8.
 (a) (1) In order to increase transparency about the use of general ad valorem property tax revenues by local governments, the Property Tax Transparency and Accountability Program is hereby established as a pilot program in each participating county. Under the pilot program, each participating county shall include in each county tax bill, in addition to the information specified in Section 2611.6, the following information:
(2) Participating counties shall include one geographically small, one geographically medium, and one geographically large county, and each participating county shall represent different population demographics and service needs.
(b) Under the pilot program, each participating county shall include in each county tax bill, in addition to the information specified in Section 2611.6, the following information:
(1) Beginning with the 2014–15 fiscal year, information that indicates what percentage of the general ad valorem property tax is allocated to each local government jurisdiction including the county, any city, and any special district, including any school district, in the tax rate area in which the property is located.
(2) Beginning with the 2015–16 fiscal year, a comprehensive account of all the services funded by local governments, including, but not limited to, services provided by the county, any city, and any special district, including any school district, in the tax rate area in which the property is located.

(b)

(c) The pilot program shall remain operative through the 2017–18 fiscal year. Upon cessation of the pilot program, each participating county shall provide a report to the Legislature regarding the implementation of the pilot program, including, but not limited to, any required technology upgrades, workload adjustments, tax bill designs, costs, and other factors, and any recommendations regarding how a county can best increase transparency about the use of general ad valorem property tax revenues by local governments.

SEC. 3.Section 5151 of the Revenue and Taxation Code is amended to read:
5151.

(a)Interest at the county pool apportioned rate shall be paid, when that interest is ten dollars ($10) or more, on any amount refunded under Section 5096.7, or refunded to a taxpayer for any reason whatsoever. However, no interest shall be paid under the provisions of this section if the taxpayer has been given the notice required by Section 2635 and has failed to apply for the refund within 30 days after the mailing of that notice. For purposes of this section, “county pool apportioned rate” means the annualized rate of interest earned on the total amount of pooled idle funds from all accounts held by the county treasurer, in excess of the county treasurer’s administrative costs with respect to that amount, as of June 30 of the fiscal year preceding the date the refund is calculated by the auditor. For each fiscal year, the county treasurer shall advise the Controller of the county pool apportioned rate, and of computations made in deriving that rate, no later than 90 days after the end of that fiscal year. Any interest paid on a refund at a rate provided for by this subdivision as it read prior to January 1, 2009, shall be deemed to be correct.

(b)The interest rate provided for in subdivision (a) does not apply to interest on refunds of those amounts of tax that became due and payable before March 1, 1993. Interest on refunds of amounts of a qualified tax shall be paid at that rate provided for by this section as it read prior to January 1, 1993. As used in this section, a “qualified tax” means a tax that became due and payable before March 1, 1993, and had not been refunded as of April 6, 1995. This subdivision shall not be construed to affect the interest paid on refunds of those amounts of tax that became due and payable before March 1, 1993, and have been refunded as of April 6, 1995.

(c)(1)The interest computation period shall commence with the date of payment of the tax when any of the following applies:

(A)A timely application for reduction in an assessment was filed, without regard to whether the refund ultimately results from a judgment or order of a court, an order of a board of equalization or assessment appeals board, or an assessor’s correction to the assessment roll.

(B)The refund is pursuant to a roll correction resulting from the determination or adjustment by the assessor or a local assessment appeals board of a base year value.

(C)The refund results from a correction to the assessment roll pursuant to Section 4831 or 4876.

(2)Interest on refunds of taxes on property acquired by a public agency in eminent domain shall accrue from the date of recordation of the deed.

(3)In all other cases the interest computation period shall commence on the date of filing a claim for refund or payment of the tax, whichever is later. However, in the event of the granting of property tax relief pursuant to Section 69, 69.3, or 170, interest is not payable on any resulting refund of taxes, provided that payment of that refund of taxes is made within 120 days after the county assessor has sent authorization for the reduction to the county auditor.

(d)The computation of interest shall terminate as of a date within 30 days of the date of mailing or personal delivery of the refund payment.

(e)The interest charged shall be apportioned to the appropriate funds, as determined by the county auditor.

(f)The amendments made to this section by Section 4 of Chapter 801 of the Statutes of 1996 shall apply to all refunds made after January 1, 1997.

SEC. 4.SEC. 3.

 If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.