Bill Text

Bill Information


PDF |Add To My Favorites |Track Bill | print page

AB-1959 Property taxation: assessment appeals: deferral of tax payment.(2019-2020)

SHARE THIS:share this bill in Facebookshare this bill in Twitter
Date Published: 02/14/2020 09:00 PM
AB1959:v98#DOCUMENT

Amended  IN  Assembly  February 14, 2020

CALIFORNIA LEGISLATURE— 2019–2020 REGULAR SESSION

Assembly Bill
No. 1959


Introduced by Assembly Member Mayes

January 21, 2020


An act to amend Sections 2605, 2606, 4833.1, and 4985.3 of, and to add Section 2606.5 to, the Revenue and Taxation Code, relating to taxation.


LEGISLATIVE COUNSEL'S DIGEST


AB 1959, as amended, Mayes. Property taxation: assessment appeals: deferral of tax payment.
Existing property tax law provides for the payment property taxes on real property on the secured roll in two installments, which are due and payable on specified dates. Under existing property tax law, unpaid property taxes become delinquent, and subject to a delinquent penalty of 10%, as provided. In Under existing law, the case of corrections or cancellations made to the roll following a decision of a board of equalization or assessment appeals board in an adopting county if the taxpayer has failed to pay an amount of taxes computed upon assessed value that is the subject of a pending assessment appeal, that taxpayer’s relief from penalties is limited to the difference between the county board’s final determination of value and the value on the assessment roll for the fiscal year covered by the taxpayer’s application for reduction in assessment.
This bill, notwithstanding any other law, would require, upon the filing of an application with a county board of equalization or assessment appeals board for a reduction in an assessment as provided, that the date on which the taxes on the secured roll for the subject real property are due and payable be tolled during the pendency of the assessment appeal. appeal as to the disputed amount of the taxes. The bill would authorize tolling only for real property that the taxpayer both owns and occupies. The bill would provide that any taxes owed by the taxpayer are due and payable on specified dates after the resolution of the assessment appeal, as provided, and, if unpaid, deemed delinquent and subject to penalty. The bill would authorize the Governor to suspend operation of these provisions by executive order when, in the Governor’s judgment, economic conditions affecting the market in real property on a statewide basis warrant such a suspension. The bill would also make various conforming changes.
By adding to the duties of local tax officials to administer these provisions, the bill would impose 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 the statutory provisions noted above.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: YES  

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


SECTION 1.

 Section 2605 of the Revenue and Taxation Code is amended to read:

2605.
 Subject to Section 2606.5, the following taxes on the secured roll are due and payable November 1:
(a) All taxes on personal property.
(b) Half the taxes on real property, and if the amount is not evenly divisible by two, the odd cent is also due and payable unless the roll shows the odd cent as part of the second installment.

SEC. 2.

 Section 2606 of the Revenue and Taxation Code is amended to read:

2606.
 Subject to Section 2606.5, the second half of taxes on real property on the secured roll is due and payable February 1.

SEC. 3.

 Section 2606.5 is added to the Revenue and Taxation Code, to read:

2606.5.
 (a) Notwithstanding any other law and subject to subdivision (c), upon the filing of an application pursuant to Section 1603, the date on which the taxes on the secured roll for the real property that is the subject of that application are due and payable pursuant to this chapter shall be tolled as to the disputed amount of the taxes during the pendency of the assessment appeal.
(b) (1) In the case of disputed taxes on real property for which the due and payable date is tolled pursuant to subdivision (a), any disputed taxes owed by the taxpayer shall be due and payable on the first November 1 or February 1, whichever occurs earlier, after the resolution of the assessment appeal. Taxes Disputed taxes due and payable pursuant to this subdivision that are unpaid as of the applicable due and payable date shall be deemed to be delinquent and subject to penalty, as provided in Section 2617 or 2618, as applicable.
(2) For purposes of this subdivision, “resolution of the assessment appeal” means that either of the following has occurred:
(A) The county board of equalization or assessment appeals board, as applicable, has determined to not make any changes to the assessed value of the property, or amount of taxes owed, by the taxpayer based on an application filed pursuant to Section 1603.
(B) The county board of equalization or assessment appeals board, as applicable, has determined to make changes to the assessed value of the property, or amount of taxes owed, by the taxpayer based on an application filed pursuant to Section 1603 and the auditor has corrected the roll with respect to that property pursuant to Section 1646.1.
(c) This section shall only be applicable to an assessment appeal relating to real property the taxpayer both owns and occupies.

(c)

(d) The Governor may, by executive order, suspend operation of subdivisions (a) and (b) (a), (b), and (c) when, in the Governor’s judgment, economic conditions affecting the market in real property on a statewide basis warrant suspension of those provisions.

SEC. 4.

 Section 4833.1 of the Revenue and Taxation Code is amended to read:

4833.1.
 (a) Notwithstanding Section 2610.5, in the case of corrections made to the roll pursuant to Section 1646.1, where a taxpayer has failed to pay an amount of tax computed upon assessed value that is the subject of a pending assessment appeal and the due date for that amount of tax has not been tolled pursuant to Section 2606.5, the relief from penalties shall apply only to the difference between the county board’s final determination of value and the value on the assessment roll for the fiscal year covered by the application. For purposes of this section, “county board” means either a county board of supervisors that meets as a county board of equalization or an assessment appeals board.
(b) The county board shall cause notice of the requirements of this section to be mailed to each taxpayer or to be presented to each taxpayer upon filing an application for reduction in assessment with the county board if that taxpayer will be impacted by the penalty provisions of this section.
(c) For any taxpayer who has paid at least 80 percent of the amount of tax finally determined due by the county board within 60 days of mailing or presentation of the notice prescribed in subdivision (b), the tax collector shall accept payment of the balance of the tax due without penalties or interest.
(d) This section shall apply only to those properties upon which an application for reduction in assessment is pending before the county board on the effective date of the act adding this section or those applications for reduction in assessment that are filed with the county board after the effective date of the act adding this section.
(e) This section shall only become operative if the board of supervisors of a county, with the approval of the county’s tax collector and the county’s auditor, adopts a resolution or ordinance approving this section.

SEC. 5.

 Section 4985.3 of the Revenue and Taxation Code is amended to read:

4985.3.
 (a) Notwithstanding Section 2610.5, in the case of cancellations made to the roll pursuant to Section 1646.1, where a taxpayer has failed to pay an amount of tax computed upon assessed value that is the subject of a pending assessment appeal and the due date for that amount of tax has not been tolled pursuant to Section 2606.5, the relief from penalties shall apply only to the difference between the county board’s final determination of value and the value on the assessment roll for the fiscal year covered by the application. For purposes of this section, “county board” means either a county board of supervisors that meets as a county board of equalization or an assessment appeals board.
(b) The county board shall cause notice of the requirements of this section to be mailed to each taxpayer or to be presented to each taxpayer upon filing an application for reduction in assessment with the county board if that taxpayer will be impacted by the penalty provisions of this section.
(c) For any taxpayer who has paid at least 80 percent of the amount of tax finally determined due by the county board within 60 days of mailing or presentation of the notice prescribed in subdivision (b), the tax collector shall accept payment of the balance of the tax due without penalties or interest.
(d) This section shall apply only to those properties upon which an application for reduction in assessment is pending before the county board on the effective date of the act adding this section or those applications for reduction in assessment that are filed with the county board after the effective date of the act adding this section.
(e) This section shall only become operative if the board of supervisors of a county, with the approval of the county’s tax collector and the county’s auditor, adopts a resolution or ordinance approving this section.

SEC. 6.

 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.