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SB-1827 Taxation.(1995-1996)

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SB1827:v93#DOCUMENT

Senate Bill No. 1827
CHAPTER 1087

An act to amend Sections 7480, 15640, 15641, 15642, 15643, 15644, and 15645 of the Government Code, and to amend Sections 51, 62, 63.1, 75.41, 75.60, 95.31, 107.6, 170, 205.5, 401.5, 439.2, 441, 503, 504, 1624.4, 4831, 5364, 6456, 6479.3, 6480.1, 6480.10, 6591, 6701, 8708, 8876, 11319, 11354, 11405, 11430, 11555, 11576, 32102, 32291, 38405, 38412, 38423, 38451, 38606, 38616, 40102, 45651, 45651.5, 45655, 55225, 55330, 60101, 60122, 60207, and 60632 of, to add Sections 201.6, 401.9, 6902.3, 8127.5, 9151.5, 30266, 30473.5, 32457, 32557, 41052.1, 43451.5, 46501.5, 50139.5, 55221.5, 60045, 60046, and 60521.5 to, and to repeal Section 9154 of, the Revenue and Taxation Code, relating to taxation.

[ Filed with Secretary of State  September 30, 1996. Approved by Governor  September 29, 1996. ]

LEGISLATIVE COUNSEL'S DIGEST


SB 1827, Committee on Revenue and Taxation. Taxation.
Existing law restricts a state agency’s access to specified financial records, except, among other things, the disclosure to the State Board of Equalization of information relating to specified taxes.
This bill would additionally permit disclosure of information relating to specified other special taxes.
Existing law requires the State Board of Equalization to conduct surveys with respect to the procedures, practices, and general performance of county assessors. It requires the board to include in its survey a sampling of local assessments, requires the board to audit, where useful, the original accounting records of any person owning or controlling property included in a survey, requires a board survey to include certain information concerning the supplying, funding, and staffing of the assessor’s office being surveyed, and specifies a process for a response by a surveyed assessor to a board survey report.
This bill would make these duties permissive rather than mandatory. It would also require a State Board of Equalization survey to include a review of assessor practices with respect to the uniform treatment of all classes of property subject to tax, require that board surveys of the 10 largest counties and cities and counties, and, except as otherwise provided, of at least 3 counties annually selected at random, include samplings of local assessments, and authorize the board to contract with a requesting county or city and county to perform a survey not otherwise scheduled. This bill would also reduce the period in which a county assessor may respond to a board survey from 90 to 30 days, authorize the board to extend this period for good cause, require the board to issue a final survey within 2 years of commencement, and require a county assessor to annually report with respect to county implementation of board findings and recommendations contained in a board survey report. By placing additional reporting requirements on county assessors, this bill would impose a state-mandated local program.
The California Constitution generally limits ad valorem taxes on real property to 1% of the full cash value of that property. For purposes of this limitation, “full cash value” is defined as the assessor’s valuation of real property as shown on the 1975–76 tax bill under “full cash value” or, thereafter, the appraised value of that real property when purchased, newly constructed, or a change in ownership has occurred.
Existing statutory provisions implementing this constitutional authority provide, as specified, that the taxable value of real property for any fiscal year is the lower of that property’s fair market value or that property’s full cash value base, as adjusted for inflation.
This bill would require, for purposes of this inflation adjustment, that the applicable inflation percentage be rounded to the nearest one-thousandth of 1%.
Existing property tax statutes implementing the definition of “full cash value” provides that the term “change in ownership” does not include certain transfers, including any transfer of a lessor’s interest in taxable real property subject to a lease with a remaining term, including renewal options, of 35 years or more.
This bill would make a technical, clarifying change with respect to a conclusive presumption contained in this provision with respect to the length of a renewal option.
The California Constitution also excludes from the terms “purchase” and “change in ownership” the purchase or transfer of the principal residence of the transferor, or the purchase or transfer of the first $1,000,000 of all other real property, in the case of a transfer between parents and their children, as defined by the Legislature. As amended at the March 26, 1996, primary election, the California Constitution also extends these exclusions to similar purchases or transfers of real property between grandparents and their grandchildren, as defined by the Legislature, in the case in which all of the parents of those grandchildren, who themselves qualify as the children of those grandparents, are deceased.
Existing statutory law implements constitutional authority for exclusions for purchases or transfers of real property between parents and children, but does not implement constitutional authority for purchases or transfers of real property between grandparents and their grandchildren.
This bill would, as provided, implement constitutional authority for exclusions from the terms “purchase” and “change in ownership” for purchases and transfers of real property between grandparents and grandchildren. By placing additional duties on local tax officials in the administration of these exclusions, this bill would impose a state-mandated local program.
Existing property tax law provides for the proration of property taxes assessed on the supplemental property tax roll in accordance with specified proration factors corresponding to dates upon which a change in ownership of property or the new construction of property is deemed to have occurred.
This bill would provide for a proration factor of 0.42, rather than 0.25, in the case in which the change in ownership or new construction is presumed to have occurred on February 1.
Existing property tax law with respect to supplemental tax assessments authorizes an eligible county, as defined, to recover its costs of administering the supplemental property tax roll.
This bill would explicitly extend this authority to a city and county, and would, in the case in which a board survey finds that no significant assessment problems exist, allow that survey to be conducted without the sampling of local assessments.
Existing property tax law authorizes any eligible county, as defined, to participate in the State-County Property Tax Administration Program (SCPTAP) by means of a contractual agreement with the Department of Finance, and authorizes a loan, as specified, to that eligible county under that agreement. SB 218 would modify the SCPTAP as to the administration of that program with respect to certain counties.
This bill would amend the SCPTAP, as modified by SB 218, to also require the State Board of Equalization, at the request of the Department of Finance, to assist that department in evaluating contracts entered into pursuant to the State-County Property Tax Administration Program.
Existing property tax law authorizes a party to recover damages from the contracting state or local public entity with whom the party has a contract creating a possessory interest in real property, where the private party can show that without the agency’s inclusion of a required notice in the contract concerning the potential tax liability for that interest, the party had no actual knowledge of the existence of a possessory interest tax.
This bill would delete an obsolete statutory reference in that provision.
Existing law authorizes a county board of supervisors to provide by ordinance for the reassessment of property that is damaged or destroyed, without fault on the part of the assessee, by a major misfortune or calamity, upon the application of the assessee or upon the action of the county assessor with the board’s approval. Existing law requires the reassessed value of the damaged or destroyed property to be applied to that portion of the fiscal year in which the damage or destruction occurred that is subsequent to that damage or destruction.
This bill would clarify the meaning of the term “fiscal year” for purposes of applying these reassessment provisions in the levy of supplemental property taxes.
Existing provisions of the California Constitution provide that specified publicly owned property is exempt from ad valorem property taxation.
This bill would provide that any property that is exclusively devoted to public purposes and is owned by a nonprofit entity, the property, assets, profits, and net revenues of which are irrevocably dedicated to the Ventura Port District, shall be deemed to be property owned by the Ventura Port District. This bill would, with respect to these provisions, make legislative findings and declarations as to the necessity for a special statute.
Existing law provides, pursuant to the authorization of the California Constitution, for the exemption from property taxation of the home of a person or that person’s spouse in the case in which the person has, as a result of a service-connected disease or injury, died while on active duty in military service. Existing law also establishes methods for the property tax valuation of enforceably restricted historical property.
This bill would correct obsolete references to federal entities in those provisions.
Existing property tax law requires the State Board of Equalization to issue to county assessors data relating to the costs of property, and other information that in the board’s judgment will promote uniformity in appraisal practices and assessed values.
This bill would additionally authorize the board, after a public hearing, to review and approve commercially available data with respect to commercial and industrial property.
Existing property tax law provides that, effective with the January 1, 1997, lien date, the property tax lien date is established as the January 1 immediately preceding the fiscal year for which property taxes are levied.
This bill would provide that contracts entered into pursuant to the California Land Conservation Act of 1965 and recorded between January 1, 1997, and February 28, 1997, and land zoned as timberland pursuant to specified statutory provisions between January 1, 1997, and February 28, 1997, shall be deemed timely for purposes of inclusion on the January 1, 1997, property tax roll.
Existing property tax law requires each person owning taxable personal property, other than a mobilehome taxed under specified provisions, to file with the assessor a signed property statement if that person’s taxable personal property has an aggregate cost of $30,000 or more for the initial assessment year or an aggregate cost of $100,000 or more for any subsequent assessment year.
This bill would eliminate the $30,000 threshold amount for the initial assessment year, and instead apply the $100,000 threshold amount for all assessment years.
Existing property tax law requires that penalties of a specified percentage of additional assessed value be imposed in the case in which an escape assessment is levied in connection with a taxpayer’s willful evasion or fraud.
This bill would make clarifying revisions to these provisions, and would make other technical, nonsubstantive changes.
Existing property tax law provides that a party affected by an equalization proceeding or the county assessor may object to the hearing of a matter before a member of the assessment appeals board and specifies a procedure for determining the disqualification of the member.
This bill would change that disqualification procedure in various ways. The bill would provide that an objection to a member shall be presented at the earliest practicable opportunity after the party’s discovery of the facts constituting the ground for disqualification, instead of after the party’s appearance and discovery of those facts. The bill would provide that, when the affected parties cannot agree on who will determine the matter of disqualification, the clerk of the assessment appeals board, instead of the county board of supervisors, shall assign a member to hear and determine the matter.
Existing property tax law allows the correction of certain errors resulting in incorrect entries on the property tax roll, including the failure to reflect a decline in the taxable value of real property as required by a specified statutory provision.
This bill would make technical, clarifying changes with respect to correcting a failure to reflect a decline in the taxable value of real property as required by this specified statutory provision.
Existing property tax law requires the State Board of Equalization to establish standards and fix guides to be used by county assessors in the assessment of aircraft at market value.
This bill would, for the same purpose, require the board to also review and approve commercially available guides, after a public hearing.
The Sales and Use Tax Law provides, under regulations prescribed by the State Board of Equalization, that if both spouses’ names appear on an application for a seller’s permit, as specified, and a tax liability under the sales and use tax law is unreported or understated due to certain omissions of one spouse, and the other spouse did not know of, and had no reason to know of, the understatement, and certain other criteria are met, then the other spouse shall be relieved of liability for tax, interest, and penalties attributable to that understatement, as provided. Existing law provides that this relief provision does not apply to any calendar quarter that has been closed by a statute of limitations, res judicata, or otherwise.
This bill would eliminate the requirement that both spouses’ names appear as applicants on the permit application. The bill would allow similar relief when any amount of the tax reported on a return was unpaid, and the nonpayment of the reported tax liability is attributable to one spouse. The bill would instead provide that this relief provision shall not apply to any calendar quarter that is more than 5 years from the date on which the board issued determination becomes final, 5 years from the return due date for nonpayment on a return, or one year from the first contact with the spouse making a claim for relief, or closed by res judicata.
The bill would make related changes.
The Sales and Use Tax Law provides for the specified payment of taxes, including payment by electronic funds transfer.
This bill would provide under that law that any person who fails to file a return, as provided, shall pay a penalty of 10% of the taxes due. This bill would limit the penalties imposed for a failure to file and for specified violations of the electronic funds transfer provisions, to a maximum of 10% of the taxes due for any one return.
The Sales and Use Tax Law imposes a tax on the gross receipts from the sale in this state of, or the storage, use, or other consumption in this state of, tangible personal property. That law requires distributors of motor vehicle fuel to collect prepayments of sales tax on motor vehicle fuel from the person to whom the fuel is distributed. The rate per gallon of the prepayment is established annually by the State Board of Equalization, as provided, on the arithmetic average selling price of gasoline as determined by a specified publication.
This bill would allow the board to base its determination on other sources of the arithmetic average selling price of gasoline, in the event that publication is delayed or discontinued.
The Sales and Use Tax Law provides, among other things, for the prepayment of sales tax on motor vehicle fuel distributions.
This bill would provide, for purposes of those prepayment provisions, that the term “fuel” shall include diesel fuel as that term is defined by the Diesel Fuel Tax Law.
The Sales and Use Tax Law authorizes the State Board of Equalization to require taxpayers to post security up to a maximum of $10,000 whenever the board deems it necessary to insure the payment of taxes due.
This bill would increase that maximum security amount to $50,000, and would allow the board to release the security after a designated period of full compliance by the taxpayer.
The Sales and Use Tax Law establishes specified limitation periods for the approval by the State Board of Equalization of any refund for an overpayment.
This bill would provide that, notwithstanding that provision, a refund of an overpayment of any tax, penalty, or interest collected by the board by means of levy or by other enforcement procedures, shall be approved if a claim is filed within 3 years of the date of overpayment.
The Sales and Use Tax Law and the Integrated Waste Management Fee Law require any person who collects a tax or fee reimbursement in excess of the amount due to either refund the excess to their customer or remit the excess to the state.
This bill would require that excess amounts of taxes or fee reimbursements under the Sales and Use Tax Law, the Motor Vehicle Fuel License Tax Law, the Use Fuel Tax Law, the Hazardous Substances Tax Law, the Oil Spill Response, Prevention, and Administration Fees Law, the Underground Storage Tank Maintenance Fee Law, the Fee Collection Procedures Law, and the Diesel Fuel Tax Law be returned to the customer, as provided.
The Use Fuel Tax Law provides that a fuel user who fails to pay any taxes shall pay a penalty of 10% of the amount of the tax or $50, whichever is greater, as provided.
This bill would provide that the penalty shall be 10% of the amount of the tax.
The Diesel Fuel Tax Law imposes specified taxes that are administered by the State Board of Equalization. That law authorizes the board to issue diesel fuel trip permits to holders of trip permits, as specified, and to enter into an interagency agreement with the Department of Motor Vehicles for the issuance of use fuel trip permits.
This bill would permit the board or its authorized representative to issue a California fuel trip permit to interstate users or holders of trip permits, and would authorize the issuance of California fuel trip permits, instead of use or diesel fuel trip permits.
The Private Railroad Car Tax Law and the Timber Yield Tax Law provide for the payment of interest on underpayments or overpayments of tax imposed by those laws.
This bill would correct statutory references relating to the determination of the applicable interest rate.
The bill would also make technical changes in those provisions.
The Cigarette and Tobacco Products Tax Law authorizes the State Board of Equalization to make determinations of tax under that law under various circumstances.
This bill would authorize the State Board of Equalization to increase or decrease a determination of tax made by the board under the Cigarette and Tobacco Products Tax Law, and would require any increase in a determination to be made pursuant to a claim by the board, asserted within a specified period of years, except as provided.
This bill would impose a state-mandated local program by making it a crime under that law, punishable as a misdemeanor, to possess, sell, offer to sell, purchase, or offer to purchase false or fraudulent stamps or meter impressions.
The Alcoholic Beverage Tax Law requires taxpayers to file security with the State Board of Equalization. That law also imposes a penalty for a failure to file a return of 5% of the estimated tax owing.
This bill would authorize the board to determine the amount and form of that security, and would increase the penalty for failure to file a return to 10% of the estimated tax owing.
The Alcoholic Beverage Tax Law prohibits the Alcoholic Beverage Control Board or any person having an administrative position under that law from making known in any manner certain information that is contained in a winegrower’s report.
This bill would, notwithstanding a specified statute, allow information in a specified vendor’s report relating to beer shipments into this state to be made public.
The Alcoholic Beverage Tax Law imposes specified taxes upon the sale of alcoholic beverages.
This bill would impose a state-mandated local program by making it a crime under that law, punishable as a misdemeanor, to possess, store, retain, sell, or offer to sell any container of alcoholic beverages if the taxes on those beverages have not been paid and exceed $500, as provided.
The Energy Resources Surcharge Law authorizes the State Board of Equalization to relieve a person of penalties imposed by specified statutes if the board finds that the person’s failure to timely make a payment or return is due to reasonable cause.
This bill would extend this authorization to penalties imposed pursuant to additional specified statutes.
The Emergency Telephone Users Surcharge Act requires returns and payments to be made on a quarterly basis.
This bill would allow the State Board of Equalization, if it deems it necessary, to require returns and payments of tax under that act to be made for quarterly periods other than calendar quarters, or for multiples of quarterly periods. This provision would not become operative if AB 3204 is chaptered, as specified.
Existing law with respect to integrated waste management fees requires any determination made by the State Board of Equalization with respect to the refund or credit of fee, penalty, or interest amounts in excess of $15,000 to be made available as a public record for at least 10 days prior to the effective date of that determination.
This bill would increase the $15,000 threshold to $50,000.
Existing law with respect to integrated waste management fees requires interest to be paid, in the case of a refund, to the 15th day of the calendar month following the date upon which the claimant is notified by the State Board of Equalization that a claim may be filed, or the date upon which the claim is certified to the State Board of Control, whichever is earlier.
This bill would instead require interest to be paid, in the case of a refund, to the last day of the monthly period, as defined, following the date the claimant is notified by the board that a claim may be filed.
The Fee Collection Procedures Law requires interest to be computed and paid upon any overpayment of any fee amount from the first day of the calendar month following the month during which the overpayment was made, and requires that interest be paid, in the case of a refund, to the 15th day of the calendar month following the date upon which the claimant is notified by the State Board of Equalization that a claim may be filed or the date upon which the claim is certified to the State Board of Control, whichever is earlier.
This bill would modify these provisions to instead require interest on any overpayment of any fee amount to be paid from the first day of the monthly period, as defined, following the monthly period during which the overpayment was made, and would require interest to be paid, in the case of a refund, to the last day of the monthly period, as defined, following the date the claimant is notified by the board that a claim may be filed.
The Fee Collection Procedures Law provides that every taxpayer is entitled to be reimbursed for any reasonable fees and expenses related to a hearing before the State Board of Equalization, provided that certain conditions are met.
This bill would modify these conditions to remove requirements with respect to the State Board of Control, and would require any award of fees and expense proposed by the State Board of Equalization to be available as a public record for at least 10 days prior to the effective date of the award.
The Diesel Fuel Tax Law prohibits any person from operating or maintaining a motor vehicle on the public highway with dyed diesel fuel, except if dyed diesel fuel is used in a manner that is lawful under the federal Internal Revenue Code by a person who is registered in a specific capacity under the Diesel Fuel Tax Law.
This bill would expand this exception to include the use of dyed fuel in a manner lawful under the federal Internal Revenue Code by an intercity bus operator who is registered as an interstate user under the Diesel Fuel Tax Law.
The Diesel Fuel Tax Law provides that any person who fails to file a report or return or to pay the amount of tax due, as specified, shall pay a penalty of 10% of the tax or $50, whichever is greater, as provided.
This bill would impose that penalty only for the failure to pay the tax and only in the amount of 10% of the tax.
The Diesel Fuel Tax Law does not authorize the Taxpayers’ Rights Advocate appointed pursuant to that law to release a levy or notice to withhold upon his or her finding that the levy or notice to withhold threatens the health and welfare of the taxpayer, or his or her spouse and dependents.
This bill would authorize the Taxpayers’ Rights Advocate appointed pursuant to the Diesel Fuel Tax Law to order the release of any levy or notice to withhold, or within 90 days from the receipt of funds pursuant to that levy or notice to order the return of received funds in an amount not to exceed $1,500, upon his or her finding that the levy or notice to withhold threatens the health and welfare of the taxpayer, or his or her spouse and dependents.
This bill would also make certain nonsubstantive technical or clarifying changes.
This bill would incorporate additional changes in Section 7480 of the Government Code, proposed by AB 3351, to be operative only if AB 3351 and this bill are both chaptered and become effective January 1, 1997, and this bill is chaptered last. In that event, these additional changes would become operative on the operative date of AB 3351.
This bill would incorporate additional changes in Section 62 of the Revenue and Taxation Code, proposed by SB 44 and SB 494, to become operative only if SB 44 or SB 494, or both, and this bill are chaptered and become effective January 1, 1997, and this bill is chaptered last.
This bill would incorporate additional changes in Section 6480.1 of the Revenue and Taxation Code, proposed by SB 956, to become operative only if SB 956 and this bill are both chaptered and become effective January 1, 1997, and this bill is chaptered last.
Section 2229 of the Revenue and Taxation Code requires the Legislature to reimburse local agencies annually for certain property tax revenues lost as a result of any exemption or classification of property for purposes of ad valorem property taxation.
This bill would provide that, notwithstanding Section 2229 of the Revenue and Taxation Code, no appropriation is made, and the state shall not reimburse local agencies for property tax revenues lost by them pursuant to specified provisions of the bill. 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, including the creation of a State Mandates Claims Fund to pay the costs of mandates that do not exceed $1,000,000 statewide and other procedures for claims whose statewide costs exceed $1,000,000.
This bill would provide that with regard to certain mandates no reimbursement is required by certain provisions of this act for a specified reason.
With regard to any other mandates, this bill would provide that, if the Commission on State Mandates determines that other provisions of the bill contain costs so mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.

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


SECTION 1.

 Section 7480 of the Government Code is amended to read:

7480.
 Nothing in this chapter prohibits any of the following:
(a)  The dissemination of any financial information which is not identified with, or identifiable as being derived from, the financial records of a particular customer.
(b)  When any police or sheriff’s department or district attorney in this state certifies to a bank, credit union, or savings and loan association in writing that a crime report has been filed which involves the alleged fraudulent use of drafts, checks, or other orders drawn upon any bank, credit union, or savings and loan association in this state, the police or sheriff’s department or district attorney may request a bank, credit union, or savings and loan association to furnish, and a bank, credit union, or savings and loan association shall supply, a statement setting forth the following information with respect to a customer account specified by the police or sheriff’s department or district attorney for a period 30 days prior to and up to 30 days following the date of occurrence of the alleged illegal act involving the account:
(1)  The number of items dishonored.
(2)  The number of items paid which created overdrafts.
(3)  The dollar volume of the dishonored items and items paid which created overdrafts and a statement explaining any credit arrangement between the bank, credit union, or savings and loan association and customer to pay overdrafts.
(4)  The dates and amounts of deposits and debits and the account balance on these dates.
(5)  A copy of the signature and any addresses appearing on a customer’s signature card.
(6)  The date the account opened and, if applicable, the date the account closed.
(c)  The Attorney General, a supervisory agency, the Franchise Tax Board, the State Board of Equalization, the Employment Development Department, the Controller or an inheritance tax referee when administering the Prohibition of Gift and Death Taxes (Part 8 (commencing with Section 13301) of Division 2 of the Revenue and Taxation Code), a police or sheriff’s department or district attorney, a county welfare department when investigating welfare fraud, or the Department of Corporations when conducting investigations in connection with the enforcement of laws administered by the Commissioner of Corporations, from requesting of an office or branch of a financial institution, and the office or branch from responding to a request, as to whether a person has an account or accounts at that office or branch and, if so, any identifying numbers of the account or accounts.
No additional information beyond that specified in this section shall be released to a county welfare department without either the accountholder’s written consent or a judicial writ, search warrant, subpoena, or other judicial order.
(d)  The examination by, or disclosure to, any supervisory agency of financial records which relate solely to the exercise of its supervisory function. The scope of an agency’s supervisory function shall be determined by reference to statutes which grant authority to examine, audit, or require reports of financial records or financial institutions as follows:
(1)  With respect to the Superintendent of Banks by reference to Division 1 (commencing with Section 99), Division 15 (commencing with Section 31000), and Division 16 (commencing with Section 33000) of the Financial Code.
(2)  With respect to the Department of Savings and Loan by reference to Division 2 (commencing with Section 5000) of the Financial Code.
(3)  With respect to the Corporations Commissioner by reference to Division 5 (commencing with Section 14000) and Division 7 (commencing with Section 18000) of the Financial Code.
(4)  With respect to the Controller by reference to Title 10 (commencing with Section 1300) of Part 3 of the Code of Civil Procedure.
(5)  With respect to the Administrator of Local Agency Security by reference to Article 2 (commencing with Section 53630) of Chapter 4 of Part 1 of Division 2 of Title 5 of the Government Code.
(e)  The disclosure to the Franchise Tax Board of (1) the amount of any security interest a financial institution has in a specified asset of a customer or (2) financial records in connection with the filing or audit of a tax return or tax information return required to be filed by the financial institution pursuant to Part 10 (commencing with Section 17001), 11 (commencing with Section 23001), or 18 (commencing with Section 38001) of the Revenue and Taxation Code.
(f)  The disclosure to the State Board of Equalization of any of the following:
(1)  The information required by Sections 6702, 6703, 8954, 8957, 30313, 30315, 32383, 32387, 38502, 38503, 40153, 40155, 41122, 41123.5, 43443, 43444.2, 44144, 45603, 45605, 46404, 46406, 50134, 50136, 55203, 55205, 60404, and 60407 of the Revenue and Taxation Code.
(2)  The financial records in connection with the filing or audit of a tax return required to be filed by the financial institution pursuant to Parts 1 (commencing with Section 6001), 2 (commencing with Section 7301), 3 (commencing with Section 8601), 13 (commencing with Section 30001), 14 (commencing with Section 32001), and 17 (commencing with Section 37001) of Division 2 of the Revenue and Taxation Code.
(3)  The amount of any security interest a financial institution has in a specified asset of a customer, if the inquiry is directed to the branch or office where the interest is held.
(g)  The disclosure to the Controller of the information required by Section 7853 of the Revenue and Taxation Code.
(h)  The disclosure to the Employment Development Department of the amount of any security interest a financial institution has in a specified asset of a customer, if the inquiry is directed to the branch or office where the interest is held.
(i)  The disclosure by a construction lender, as defined in Section 3087 of the Civil Code, to the Registrar of Contractors, of information concerning the making of progress payments to a prime contractor requested by the registrar in connection with an investigation under Section 7108.5 of the Business and Professions Code.
(j)  Upon receipt of a written request from a district attorney referring to a support order pursuant to Section 11475.1 of the Welfare and Institutions Code, a financial institution shall disclose the following information concerning the account or the person named in the request, whom the district attorney shall identify, whenever possible, by social security number:
(1)  If the request states the identifying number of an account at a financial institution, the name of each owner of the account.
(2)  Each account maintained by the person at the branch to which the request is delivered, and, if the branch is able to make a computerized search, each account maintained by the person at any other branch of the financial institution located in this state.
(3)  For each account disclosed pursuant to paragraphs (1) and (2), the account number, current balance, street address of the branch where the account is maintained, and, to the extent available through the branch’s computerized search, the name and address of any other person listed as an owner.
Whenever the request prohibits the disclosure, a financial institution shall not disclose either the request or its response, to an owner of the account or to any other person, except the officers and employees of the financial institution who are involved in responding to the request and to attorneys, auditors, and regulatory authorities who have a need to know in order to perform their duties, and except as disclosure may be required by legal process.
No financial institution, or any officer, employee, or agent thereof, shall be liable to any person for (A) disclosing information in response to a request pursuant to this subdivision, (B) failing to notify the owner of an account, or complying with a request under this paragraph not to disclose to the owner, the request or disclosure under this subdivision, or (C) failing to discover any account owned by the person named in the request pursuant to a computerized search of the records of the financial institution.
The district attorney may request information pursuant to this subdivision only when the district attorney has received at least one of the following types of physical evidence:
(A)  Any of the following, dated within the last three years:
(i)  Form 599.
(ii)  Form 1099.
(iii)  A bank statement.
(iv)  A check.
(v)  A bank passbook.
(vi)  A deposit slip.
(vii)  A copy of a federal or state income tax return.
(viii)  A debit or credit advice.
(ix)  Correspondence that identifies the child support obligor by name, the bank, and the account number.
(x)  Correspondence that identifies the child support obligor by name, the bank, and the banking services related to the account of the obligor.
(xi)  An asset identification report from a federal agency.
(B)  A sworn declaration of the custodial parent during the 12 months immediately preceding the request that the person named in the request has had or may have had an account at an office or branch of the financial institution to which the request is made.
Information obtained by a district attorney pursuant to this subdivision shall be used only for purposes that are directly connected within the administration of the duties of the district attorney pursuant to Section 11475.1 of the Welfare and Institutions Code.

SEC. 1.5.

 Section 7480 of the Government Code is amended to read:

7480.
 Nothing in this chapter prohibits any of the following:
(a)  The dissemination of any financial information which is not identified with, or identifiable as being derived from, the financial records of a particular customer.
(b)  When any police or sheriff’s department or district attorney in this state certifies to a bank, credit union, or savings association in writing that a crime report has been filed which involves the alleged fraudulent use of drafts, checks, or other orders drawn upon any bank, credit union, or savings association in this state, the police or sheriff’s department or district attorney may request a bank, credit union, or savings association to furnish, and a bank, credit union, or savings association shall supply, a statement setting forth the following information with respect to a customer account specified by the police or sheriff’s department or district attorney for a period 30 days prior to and up to 30 days following the date of occurrence of the alleged illegal act involving the account:
(1)  The number of items dishonored.
(2)  The number of items paid which created overdrafts.
(3)  The dollar volume of the dishonored items and items paid which created overdrafts and a statement explaining any credit arrangement between the bank, credit union, or savings association and customer to pay overdrafts.
(4)  The dates and amounts of deposits and debits and the account balance on these dates.
(5)  A copy of the signature and any addresses appearing on a customer’s signature card.
(6)  The date the account opened and, if applicable, the date the account closed.
(c)  The Attorney General, a supervisory agency, the Franchise Tax Board, the State Board of Equalization, the Employment Development Department, the Controller or an inheritance tax referee when administering the Prohibition of Gift and Death Taxes (Part 8 (commencing with Section 13301) of Division 2 of the Revenue and Taxation Code), a police or sheriff’s department or district attorney, a county welfare department when investigating welfare fraud, or the Department of Corporations when conducting investigations in connection with the enforcement of laws administered by the Commissioner of Corporations, from requesting of an office or branch of a financial institution, and the office or branch from responding to a request, as to whether a person has an account or accounts at that office or branch and, if so, any identifying numbers of the account or accounts.
No additional information beyond that specified in this section shall be released to a county welfare department without either the accountholder’s written consent or a judicial writ, search warrant, subpoena, or other judicial order.
(d)  The examination by, or disclosure to, any supervisory agency of financial records which relate solely to the exercise of its supervisory function. The scope of an agency’s supervisory function shall be determined by reference to statutes which grant authority to examine, audit, or require reports of financial records or financial institutions as follows:
(1)  With respect to the Commissioner of Financial Institutions by reference to Division 1 (commencing with Section 99), Division 1.5 (commencing with Section 4800), Division 2 (commencing with Section 5000), Division 5 (commencing with Section 14000), Division 7 (commencing with Section 18000), Division 15 (commencing with Section 31000), and Division 16 (commencing with Section 33000) of the Financial Code.
(2)  With respect to the Controller by reference to Title 10 (commencing with Section 1300) of Part 3 of the Code of Civil Procedure.
(3)  With respect to the Administrator of Local Agency Security by reference to Article 2 (commencing with Section 53630) of Chapter 4 of Part 1 of Division 2 of Title 5 of the Government Code.
(e)  The disclosure to the Franchise Tax Board of (1) the amount of any security interest a financial institution has in a specified asset of a customer or (2) financial records in connection with the filing or audit of a tax return or tax information return required to be filed by the financial institution pursuant to Part 10 (commencing with Section 17001), 11 (commencing with Section 23001), or 18 (commencing with Section 38001) of the Revenue and Taxation Code.
(f)  The disclosure to the State Board of Equalization of any of the following:
(1)  The information required by Sections 6702, 6703, 8954, 8957, 30313, 30315, 32383, 32387, 38502, 38503, 40153, 40155, 41122, 41123.5, 43443, 43444.2, 44144, 45603, 45605, 46404, 46406, 50134, 50136, 55203, 55205, 60404, and 60407 of the Revenue and Taxation Code.
(2)  The financial records in connection with the filing or audit of a tax return required to be filed by the financial institution pursuant to Parts 1 (commencing with Section 6001), 2 (commencing with Section 7301), 3 (commencing with Section 8601), 13 (commencing with Section 30001), 14 (commencing with Section 32001), and 17 (commencing with Section 37001) of Division 2 of the Revenue and Taxation Code.
(3)  The amount of any security interest a financial institution has in a specified asset of a customer, if the inquiry is directed to the branch or office where the interest is held.
(g)  The disclosure to the Controller of the information required by Section 7853 of the Revenue and Taxation Code.
(h)  The disclosure to the Employment Development Department of the amount of any security interest a financial institution has in a specified asset of a customer, if the inquiry is directed to the branch or office where the interest is held.
(i)  The disclosure by a construction lender, as defined in Section 3087 of the Civil Code, to the Registrar of Contractors, of information concerning the making of progress payments to a prime contractor requested by the registrar in connection with an investigation under Section 7108.5 of the Business and Professions Code.
(j)  Upon receipt of a written request from a district attorney referring to a support order pursuant to Section 11475.1 of the Welfare and Institutions Code, a financial institution shall disclose the following information concerning the account or the person named in the request, whom the district attorney shall identify, whenever possible, by social security number:
(1)  If the request states the identifying number of an account at a financial institution, the name of each owner of the account.
(2)  Each account maintained by the person at the branch to which the request is delivered, and, if the branch is able to make a computerized search, each account maintained by the person at any other branch of the financial institution located in this state.
(3)  For each account disclosed pursuant to paragraphs (1) and (2), the account number, current balance, street address of the branch where the account is maintained, and, to the extent available through the branch’s computerized search, the name and address of any other person listed as an owner.
Whenever the request prohibits the disclosure, a financial institution shall not disclose either the request or its response, to an owner of the account or to any other person, except the officers and employees of the financial institution who are involved in responding to the request and to attorneys, auditors, and regulatory authorities who have a need to know in order to perform their duties, and except as disclosure may be required by legal process.
No financial institution, or any officer, employee, or agent thereof, shall be liable to any person for (A) disclosing information in response to a request pursuant to this subdivision, (B) failing to notify the owner of an account, or complying with a request under this paragraph not to disclose to the owner, the request or disclosure under this subdivision, or (C) failing to discover any account owned by the person named in the request pursuant to a computerized search of the records of the financial institution.
The district attorney may request information pursuant to this subdivision only when the district attorney has received at least one of the following types of physical evidence:
(A)  Any of the following, dated within the last three years:
(i)  Form 599.
(ii)  Form 1099.
(iii)  A bank statement.
(iv)  A check.
(v)  A bank passbook.
(vi)  A deposit slip.
(vii)  A copy of a federal or state income tax return.
(viii)  A debit or credit advice.
(ix)  Correspondence that identifies the child support obligor by name, the bank, and the account number.
(x)  Correspondence that identifies the child support obligor by name, the bank, and the banking services related to the account of the obligor.
(xi)  An asset identification report from a federal agency.
(B)  A sworn declaration of the custodial parent during the 12 months immediately preceding the request that the person named in the request has had or may have had an account at an office or branch of the financial institution to which the request is made.
Information obtained by a district attorney pursuant to this subdivision shall be used only for purposes that are directly connected within the administration of the duties of the district attorney pursuant to Section 11475.1 of the Welfare and Institutions Code.

SEC. 2.

 Section 15640 of the Government Code is amended to read:

15640.
 (a)  The State Board of Equalization shall make surveys in each county and city and county to determine the adequacy of the procedures and practices employed by the county assessor in the valuation of property for the purposes of taxation and in the performance generally of the duties enjoined upon him or her.
(b)  The surveys shall include a review of the practices of the assessor with respect to uniformity of treatment of all classes of property to ensure that all classes are treated equitably, and that no class receives a systematic overvaluation or undervaluation as compared to other classes of property in the county or city and county.
(c)  The surveys may include a sampling of assessments from the local assessment rolls. Any sampling conducted pursuant to subdivision (b) of Section 15643 shall be sufficient in size and dispersion to insure an adequate representation therein of the several classes of property throughout the county.
(d)  In addition, the board may periodically conduct statewide surveys limited in scope to specific topics, issues, or problems requiring immediate attention.
(e)  The board’s duly authorized representatives shall, for purposes of these surveys, have access to, and may make copies of, all records, public or otherwise, maintained in the office of any county assessor.
(f)  The board shall develop procedures to carry out its duties under this section after consultation with the California Assessors’ Association. The board shall also provide a right to each county assessor to appeal to the board appraisals made within his or her county where differences have not been resolved before completion of a field review and shall adopt procedures to implement the appeal process.

SEC. 3.

 Section 15641 of the Government Code is amended to read:

15641.
 In order to verify the information furnished to the assessor of the county, the board may audit the original books of account, wherever located, of any person owning, claiming, possessing or controlling property included in a survey conducted pursuant to this chapter when the property is of a type for which accounting records are useful sources of appraisal data.
No appraisal data relating to individual properties obtained for the purposes of any survey under this chapter shall be made public, and no state or local officer or employee thereof gaining knowledge thereof in any action taken under this chapter shall make any disclosure with respect thereto except as that may be required for the purposes of this chapter. Except as specifically provided herein, any appraisal data may be disclosed by the board to any assessor, or by the board or the assessor to the assessee of the property to which the data relate.
The board shall permit an assessee of property to inspect, at the appropriate office of the board, any information and records relating to an appraisal of his or her property, including “market data” as defined in Section 408. However, no information or records, other than “market data,” which relate to the property or business affairs of a person other than the assessee shall be disclosed.
Nothing in this section shall be construed as preventing examination of that data by law enforcement agencies, grand juries, boards of supervisors, or their duly authorized agents, employees, or representatives conducting an investigation of an assessor’s office pursuant to Section 25303, and other duly authorized legislative or administrative bodies of the state pursuant to their authorization to examine that data.

SEC. 4.

 Section 15642 of the Government Code is amended to read:

15642.
 The board shall send members of its staff to the several counties and cities and counties of the state for the purpose of conducting that research it deems essential for the completion of a survey report pursuant to Section 15640 with respect to each county and city and county. The survey report shall show the volume of assessing work to be done as measured by the various types of property to be assessed and the number of individual assessments to be made, the responsibilities devolving upon the county assessor, and the extent to which assessment practices are consistent with or differ from state law and regulations. The report may show the county assessor’s requirements for maps, records, and other equipment and supplies essential to the adequate performance of his or her duties, the number and classification of personnel needed by him or her for the adequate conduct of his or her office, and the fiscal outlay required to secure for that office sufficient funds to ensure the proper performance of its duties.

SEC. 5.

 Section 15643 of the Government Code is amended to read:

15643.
 (a)  The board shall proceed with the surveys of the assessment procedures and practices in the several counties and cities and counties as rapidly as feasible, and shall repeat or supplement each survey at least once in five years.
(b)  The surveys of the 10 largest counties and cities and counties shall include a sampling of assessments on the local assessment rolls as described in Section 15640. In addition, the board shall each year, in accordance with procedures established by the board by regulation, select at random at least three of the remaining counties or cities and counties, and conduct a sample of assessments on the local assessment roll in those counties. If the board finds that a county or city and county has “significant assessment problems,” as provided in Section 75.60 of the Revenue and Taxation Code, a sample of assessments will be conducted in that county or city and county in lieu of a county or city and county selected at random. The 10 largest counties and cities and counties shall be determined based upon the total value of locally assessed property located in the counties and cities and counties on the lien date that falls within the calendar year of 1995 and every fifth calendar year thereafter.
(c)  The statewide surveys which are limited in scope to specific topics, issues, or problems may be conducted whenever the board determines that a need exists to conduct a survey.
(d)  When requested by the legislative body or the assessor of any county or city and county to perform a survey not otherwise scheduled, the board may enter into a contract with the requesting local agency to conduct that survey. The contract may provide for a board sampling of assessments on the local roll. The amount of the contracts shall not be less than the cost to the board, and shall be subject to regulations approved by the Director of General Services.

SEC. 6.

 Section 15644 of the Government Code is amended to read:

15644.
 The surveys shall incorporate reviews of existing assessment procedures and practices as well as recommendations for their improvement in conformity with the information developed in the surveys as to what is required to afford the most efficient assessment of property for tax purposes in the counties or cities and counties concerned.

SEC. 7.

 Section 15645 of the Government Code is amended to read:

15645.
 (a)  Upon completion of a survey of the procedures and practices of a county assessor, the board shall prepare a written survey report setting forth its findings and recommendations and transmit a copy to the assessor. In addition the board may file with the assessor a confidential report containing matters relating to personnel. Before preparing its written survey report, the board shall meet with the assessor to discuss and confer on those matters which may be included in the written survey report.
(b)  Within 30 days after receiving a copy of the survey report, the assessor may file with the board a written response to the findings and recommendations in the survey report.
The board may, for good cause, extend the period for filing the response.
(c)  The survey report, together with the assessor’s response, if any, and the board’s comments, if any, shall constitute the final survey report. The final survey report shall be issued by the board within two years after the date the board began the survey. Within a year after receiving a copy of the final survey report, and annually thereafter, no later than the date on which the initial report was issued by the board and until all issues are resolved, the assessor shall file with the board of supervisors a report, indicating the manner in which the assessor has implemented, intends to implement or the reasons for not implementing, the recommendations of the survey report, with copies of that response being sent to the Governor, the Attorney General, the State Board of Equalization, the Senate and Assembly and to the grand juries and assessment appeals boards of the counties to which they relate.

SEC. 8.

 Section 51 of the Revenue and Taxation Code is amended to read:

51.
 (a)  For purposes of subdivision (b) of Section 2 of Article XIII  A of the California Constitution, for each lien date after the lien date in which the base year value is determined pursuant to Section 110.1, the taxable value of real property shall, except as otherwise provided in subdivision (b) or (c), be the lesser of:
(1)  Its base year value, compounded annually since the base year by an inflation factor, which shall be determined as follows:
(A)  For any assessment year commencing prior to January 1, 1985, the inflation factor shall be the percentage change in the cost of living, as defined in Section 2212.
(B)  For any assessment year commencing after January 1, 1985, the inflation factor shall be the percentage change, rounded to the nearest one-thousandth of 1 percent, from December of the prior fiscal year to December of the current fiscal year in the California Consumer Price Index for all items, as determined by the California Department of Industrial Relations. In no event shall the percentage increase for any assessment year determined pursuant to subparagraph (A) or (B) exceed 2 percent of the prior year’s value.
(2)  Its full cash value, as defined in Section 110, as of the lien date, taking into account reductions in value due to damage, destruction, depreciation, obsolescence, removal of property, or other factors causing a decline in value.
(b)  If the real property was damaged or destroyed by disaster, misfortune, or calamity and the board of supervisors of the county in which the real property is located has not adopted an ordinance pursuant to Section 170, or any portion of the real property has been removed by voluntary action by the taxpayer, the taxable value of the property shall be the sum of the following:
(1)  The lesser of its base year value of land determined under paragraph (1) of subdivision (a) or full cash value of land determined pursuant to paragraph (2) of subdivision (a).
(2)  The lesser of its base year value of improvements determined pursuant to paragraph (1) of subdivision (a) or the full cash value of improvements determined pursuant to paragraph (2) of subdivision (a).
The sum determined under this subdivision shall then become the base year value of the real property until that property is restored, repaired, or reconstructed or other provisions of law require establishment of a new base year value.
(c)  If the real property was damaged or destroyed by disaster, misfortune or calamity and the board of supervisors in the county in which the real property is located has adopted an ordinance pursuant to Section 170, the taxable value of the real property shall be its assessed value as computed pursuant to Section 170.
(d)  For purposes of this section, “real property” means that appraisal unit that persons in the marketplace commonly buy and sell as a unit, or that is normally valued separately.
(e)  Nothing in this section shall be construed to require the assessor to make an annual reappraisal of all assessable property. However, for each lien date after the first lien date for which the taxable value of property is reduced pursuant to paragraph (2) of subdivision (a), the value of that property shall be annually reappraised at its full cash value as defined in Section 110 until that value exceeds the value determined pursuant to paragraph (1) of subdivision (a). In no event shall the assessor condition the implementation of the preceding sentence in any year upon the filing of an assessment appeal.

SEC. 9.

 Section 62 of the Revenue and Taxation Code is amended to read:

62.
 Change in ownership shall not include:
(a)  (1)  Any transfer between coowners that results in a change in the method of holding title to the real property transferred without changing the proportional interests of the coowners in that real property, such as a partition of a tenancy in common.
(2)  Any transfer between an individual or individuals and a legal entity or between legal entities, such as a cotenancy to a partnership, a partnership to a corporation, or a trust to a cotenancy, that results solely in a change in the method of holding title to the real property and in which proportional ownership interests of the transferors and transferees, whether represented by stock, partnership interest, or otherwise, in each and every piece of real property transferred, remain the same after the transfer. The provisions of this paragraph shall not apply to transfers also excluded from change in ownership under the provisions of subdivision (b) of Section 64.
(b)  Any transfer for the purpose of perfecting title to the property.
(c)  (1)  The creation, assignment, termination, or reconveyance of a security interest; or (2) the substitution of a trustee under a security instrument.
(d)  Any transfer by the trustor, or by the trustor’s spouse, or by both, into a trust for so long as (1) the transferor is the present beneficiary of the trust, or (2) the trust is revocable; or any transfer by a trustee of such a trust described in either clause (1) or (2) back to the trustor; or, any creation or termination of a trust in which the trustor retains the reversion and in which the interest of others does not exceed 12 years duration.
(e)  Any transfer by an instrument whose terms reserve to the transferor an estate for years or an estate for life. However, the termination of such an estate for years or estate for life shall constitute a change in ownership, except as provided in subdivision (d) and in Section 63.
(f)  The creation or transfer of a joint tenancy interest if the transferor, after the creation or transfer, is one of the joint tenants as provided in subdivision (b) of Section 65.
(g)  Any transfer of a lessor’s interest in taxable real property subject to a lease with a remaining term (including renewal options) of 35 years or more. For the purpose of this subdivision, for 1979–80 and each year thereafter, it shall be conclusively presumed that all homes eligible for the homeowners’ exemption, other than mobilehomes located on rented or leased land and subject to taxation pursuant to Part 13 (commencing with Section 5800), that are on leased land have a renewal option of at least 35 years on the lease of that land, whether or not in fact that renewal option exists in any contract or agreement.
(h)  Any purchase, redemption, or other transfer of the shares or units of participation of a group trust, pooled fund, common trust fund, or other collective investment fund established by a financial institution.
(i)  Any transfer of stock or membership certificate in a housing cooperative that was financed under one mortgage, provided that mortgage was insured under Section 213, 221(d)(3), 221(d)(4), or 236 of the National Housing Act, as amended, or that housing cooperative was financed or assisted pursuant to Section 514, 515, or 516 of the Housing Act of 1949 or Section 202 of the Housing Act of 1959, or the housing cooperative was financed by a direct loan from the California Housing Finance Agency, and provided that the regulatory and occupancy agreements were approved by the governmental lender or insurer, and provided that the transfer is to the housing cooperative or to a person or family qualifying for purchase by reason of limited income. Any subsequent transfer from the housing cooperative to a person or family not eligible for state or federal assistance in reduction of monthly carrying charges or interest reduction assistance by reason of the income level of that person or family shall constitute a change of ownership.
(j)  Any transfer during the period March 1, 1975, to March 1, 1981, between coowners in any property that was held by them as coowners for all or part of that period, and which was eligible for a homeowner’s exemption during the period of the coownership, notwithstanding any other provision of this chapter. Any transferee whose interest was revalued in contravention of the provisions of this subdivision shall obtain a reversal of that revaluation with respect to the 1980–81 assessment year and thereafter, upon application to the county assessor of the county in which the property is located filed on or before March 26, 1982. No refunds shall be made under this subdivision for any assessment year prior to the 1980–81 fiscal year.
(k)  Any transfer of property or an interest therein between a corporation sole, a religious corporation, a public benefit corporation, and a holding corporation as defined in Section 23701h holding title for the benefit of any of these corporations, or any combination thereof (including any transfer from one such entity to the same type of entity), provided that both the transferee and transferor are regulated by laws, rules, regulations, or canons of the same religious denomination.
( l)  Any transfer, that would otherwise be a transfer subject to reappraisal under this chapter, between or among the same parties for the purpose of correcting or reforming a deed to express the true intentions of the parties, provided that the original relationship between the grantor and grantee is not changed.
(m)  Any intrafamily transfer of an eligible dwelling unit from a parent or parents or legal guardian or guardians to a minor child or children or between or among minor siblings as a result of a court order or judicial decree due to the death of the parent or parents. As used in this subdivision, “eligible dwelling unit” means the dwelling unit that was the principal place of residence of the minor child or children prior to the transfer and remains the principal place of residence of the minor child or children after the transfer.
(n)  Any transfer of an eligible dwelling unit, whether by will, devise, or inheritance, from a parent or parents to a child or children, or from a guardian or guardians to a ward or wards, if the child, children, ward, or wards have been disabled, as provided in subdivision (e) of Section 12304 of the Welfare and Institutions Code, for at least five years preceding the transfer and if the child, children, ward, or wards have adjusted gross income that, when combined with the adjusted gross income of a spouse or spouses, parent or parents, and child or children, does not exceed twenty thousand dollars ($20,000) in the year in which the transfer occurs. As used in this subdivision, “child” or “ward” includes a minor or an adult. As used in this subdivision, “eligible dwelling unit” means the dwelling unit that was the principal place of residence of the child or children, or ward or wards for at least five years preceding the transfer and remains the principal place of residence of the child or children, or ward or wards after the transfer. Any transferee whose property was reassessed in contravention of the provisions of this subdivision for the 1984–85 assessment year shall obtain a reversal of that reassessment upon application to the county assessor of the county in which the property is located. Application by the transferee shall be made to the assessor no later than 30 days after the later of either the transferee’s receipt of notice of reassessment pursuant to Section 75.31 or the end of the 1984–85 fiscal year.

SEC. 9.5.

 Section 62 of the Revenue and Taxation Code is amended to read:

62.
 Change in ownership shall not include:
(a)  (1)  Any transfer between coowners that results in a change in the method of holding title to the real property transferred without changing the proportional interests of the coowners in that real property, such as a partition of a tenancy in common.
(2)  Any transfer between an individual or individuals and a legal entity or between legal entities, such as a cotenancy to a partnership, a partnership to a corporation, or a trust to a cotenancy, that results solely in a change in the method of holding title to the real property and in which proportional ownership interests of the transferors and transferees, whether represented by stock, partnership interest, or otherwise, in each and every piece of real property transferred, remain the same after the transfer. The provisions of this paragraph shall not apply to transfers also excluded from change in ownership under the provisions of subdivision (b) of Section 64.
(b)  Any transfer for the purpose of perfecting title to the property.
(c)  (1)  The creation, assignment, termination, or reconveyance of a security interest; or (2) the substitution of a trustee under a security instrument.
(d)  Any transfer by the trustor, or by the trustor’s spouse, or by both, into a trust for so long as (1) the transferor is the present beneficiary of the trust, or (2) the trust is revocable; or any transfer by a trustee of such a trust described in either clause (1) or (2) back to the trustor; or, any creation or termination of a trust in which the trustor retains the reversion and in which the interest of others does not exceed 12 years duration.
(e)  Any transfer by an instrument whose terms reserve to the transferor an estate for years or an estate for life. However, the termination of such an estate for years or estate for life shall constitute a change in ownership, except as provided in subdivision (d) and in Section 63.
(f)  The creation or transfer of a joint tenancy interest if the transferor, after the creation or transfer, is one of the joint tenants as provided in subdivision (b) of Section 65.
(g)  Any transfer of a lessor’s interest in taxable real property subject to a lease with a remaining term (including renewal options) of 35 years or more. For the purpose of this subdivision, for 1979–80 and each year thereafter, it shall be conclusively presumed that all homes eligible for the homeowners’ exemption, other than mobilehomes located on rented or leased land and subject to taxation pursuant to Part 13 (commencing with Section 5800), that are on leased land and have a renewal option of at least 35 years on the lease of that land, whether or not in fact that renewal option exists in any contract or agreement.
(h)  Any purchase, redemption, or other transfer of the shares or units of participation of a group trust, pooled fund, common trust fund, or other collective investment fund established by a financial institution.
(i)  Any transfer of stock or membership certificate in a housing cooperative that was financed under one mortgage, provided that mortgage was insured under Section 213, 221(d)(3), 221(d)(4), or 236 of the National Housing Act, as amended, or that housing cooperative was financed or assisted pursuant to Section 514, 515, or 516 of the Housing Act of 1949 or Section 202 of the Housing Act of 1959, or the housing cooperative was financed by a direct loan from the California Housing Finance Agency, and provided that the regulatory and occupancy agreements were approved by the governmental lender or insurer, and provided that the transfer is to the housing cooperative or to a person or family qualifying for purchase by reason of limited income. Any subsequent transfer from the housing cooperative to a person or family not eligible for state or federal assistance in reduction of monthly carrying charges or interest reduction assistance by reason of the income level of that person or family shall constitute a change of ownership.
(j)  Any transfer during the period March 1, 1975, to March 1, 1981, between coowners in any property that was held by them as coowners for all or part of that period, and which was eligible for a homeowner’s exemption during the period of the coownership, notwithstanding any other provision of this chapter. Any transferee whose interest was revalued in contravention of the provisions of this subdivision shall obtain a reversal of that revaluation with respect to the 1980–81 assessment year and thereafter, upon application to the county assessor of the county in which the property is located filed on or before March 26, 1982. No refunds shall be made under this subdivision for any assessment year prior to the 1980–81 fiscal year.
(k)  Any transfer of property or an interest therein between a corporation sole, a religious corporation, a public benefit corporation, and a holding corporation as defined in Section 23701h holding title for the benefit of any of these corporations, or any combination thereof (including any transfer from one such entity to the same type of entity), provided that both the transferee and transferor are regulated by laws, rules, regulations, or canons of the same religious denomination.
( l)  Any transfer, that would otherwise be a transfer subject to reappraisal under this chapter, between or among the same parties for the purpose of correcting or reforming a deed to express the true intentions of the parties, provided that the original relationship between the grantor and grantee is not changed.
(m)  Any intrafamily transfer of an eligible dwelling unit from a parent or parents or legal guardian or guardians to a minor child or children or between or among minor siblings as a result of a court order or judicial decree due to the death of the parent or parents. As used in this subdivision, “eligible dwelling unit” means the dwelling unit that was the principal place of residence of the minor child or children prior to the transfer and remains the principal place of residence of the minor child or children after the transfer.
(n)  Any transfer of an eligible dwelling unit, whether by will, devise, or inheritance, from a parent or parents to a child or children, or from a guardian or guardians to a ward or wards, if the child, children, ward, or wards have been disabled, as provided in subdivision (e) of Section 12304 of the Welfare and Institutions Code, for at least five years preceding the transfer and if the child, children, ward, or wards have adjusted gross income that, when combined with the adjusted gross income of a spouse or spouses, parent or parents, and child or children, does not exceed twenty thousand dollars ($20,000) in the year in which the transfer occurs. As used in this subdivision, “child” or “ward” includes a minor or an adult. As used in this subdivision, “eligible dwelling unit” means the dwelling unit that was the principal place of residence of the child or children, or ward or wards for at least five years preceding the transfer and remains the principal place of residence of the child or children, or ward or wards after the transfer. Any transferee whose property was reassessed in contravention of the provisions of this subdivision for the 1984–85 assessment year shall obtain a reversal of that reassessment upon application to the county assessor of the county in which the property is located. Application by the transferee shall be made to the assessor no later than 30 days after the later of either the transferee’s receipt of notice of reassessment pursuant to Section 75.31 or the end of the 1984–85 fiscal year.
(o)  Any transfer of a possessory interest in tax-exempt real property subject to a sublease with a remaining term, including renewal options, that exceeds half the length of the remaining term of the leasehold, including renewal options.

SEC. 10.

 Section 63.1 of the Revenue and Taxation Code is amended to read:

63.1.
 (a)  Notwithstanding any other provision of this chapter, a change in ownership shall not include the following purchases or transfers for which a claim is filed pursuant to this section:
(1)  The purchase or transfer of real property which is the principal residence of an eligible transferor in the case of a purchase or transfer between parents and their children.
(2)  The purchase or transfer of the first one million dollars ($1,000,000) of full cash value of all other real property of an eligible transferor in the case of a purchase or transfer between parents and their children.
(3)  (A)  Subject to subparagraph (B), the purchase or transfer of real property described in paragraphs (1) and (2) of subdivision (a) occurring on or after March 27, 1996, between grandparents and their grandchild or grandchildren, if all of the parents of that grandchild or those grandchildren, who qualify as the children of the grandparents, are deceased as of the date of purchase or transfer.
(B)  A purchase or transfer of a principal residence shall not be excluded pursuant to subparagraph (A) if the transferee grandchild or grandchildren also received a principal residence, or interest therein, through another purchase or transfer that was excludable pursuant to paragraph (1) of subdivision (a). The full cash value of any real property, other than a principal residence, that was transferred to the grandchild or grandchildren pursuant to a purchase or transfer that was excludable pursuant to paragraph (2) of subdivision (a) and the full cash value of a principal residence that fails to qualify for exclusion as a result of the preceding sentence shall be included in applying, for purposes of paragraph (2) of subdivision (a), the one million dollar ($1,000,000) full cash value limit specified in paragraph (2) of subdivision (a).
(b)  (1)  For purposes of paragraph (1) of subdivision (a), “principal residence” means a dwelling for which a homeowners’ exemption or a disabled veterans’ residence exemption has been granted in the name of the eligible transferor. “Principal residence” includes only that portion of the land underlying the principal residence that consists of an area of reasonable size that is used as a site for the residence.
(2)  For purposes of paragraph (2) of subdivision (a), the one million dollar ($1,000,000) exclusion shall apply separately to each eligible transferor with respect to all purchases by and transfers to eligible transferees on and after November 6, 1986, of real property, other than the principal residence, of that eligible transferor. The exclusion shall not apply to any property in which the eligible transferor’s interest was received through a transfer, or transfers, excluded from change in ownership by the provisions of either subdivision (f) of Section 62 or subdivision (b) of Section 65, unless the transferor qualifies as an original transferor under subdivision (b) of Section 65. In the case of any purchase or transfer subject to this paragraph involving two or more eligible transferors, the transferors may elect to combine their separate one million dollar ($1,000,000) exclusions and, upon making that election, the combined amount of their separate exclusions shall apply to any property jointly sold or transferred by the electing transferors, provided that in no case shall the amount of full cash value of real property of any one eligible transferor excluded under this election exceed the amount of the transferor’s separate unused exclusion on the date of the joint sale or transfer.
(c)  As used in this section:
(1)  “Purchase or transfer between parents and their children” means either a transfer from a parent or parents to a child or children of the parent or parents or a transfer from a child or children to a parent or parents of the child or children. For purposes of this section, the date of any transfer between parents and their children under a will or intestate succession shall be the date of the decedent’s death, if the decedent died on or after November 6, 1986.
(2)  “Purchase or transfer of real property between grandparents and their grandchild or grandchildren” means a purchase or transfer on or after March 27, 1996, from a grandparent or grandparents to a grandchild or grandchildren if all of the parents of that grandchild or those grandchildren who qualify as the children of the grandparents are deceased as of the date of the transfer. For purposes of this section, the date of any transfer between grandparents and their grandchildren under a will or by intestate succession shall be the date of the decedent’s death.
(3)  “Children” means any of the following:
(A)  Any child born of the parent or parents, except a child, as defined in subparagraph (D), who has been adopted by another person or persons.
(B)  Any stepchild of the parent or parents and the spouse of that stepchild while the relationship of stepparent and stepchild exists. For purposes of this paragraph, the relationship of stepparent and stepchild shall be deemed to exist until the marriage on which the relationship is based is terminated by divorce, or, if the relationship is terminated by death, until the remarriage of the surviving stepparent.
(C)  Any son-in-law or daughter-in-law of the parent or parents. For the purposes of this paragraph, the relationship of parent and son-in-law or daughter-in-law shall be deemed to exist until the marriage on which the relationship is based is terminated by divorce or, if the relationship is terminated by death, until the remarriage of the surviving son-in-law or daughter-in-law.
(D)  Any child adopted by the parent or parents pursuant to statute, other than an individual adopted after reaching the age of 18 years.
(4)  “Grandchild” or “grandchildren” means any child or children of the child or children of the grandparent or grandparents.
(5)  “Full cash value” means full cash value, as defined in Section 2 of Article XIII  A of the California Constitution and Section 110.1, with any adjustments authorized by those sections, and the full value of any new construction in progress, determined as of the date immediately prior to the date of a purchase by or transfer to an eligible transferee of real property subject to this section.
(6)  “Eligible transferor” means a grandparent, parent, or child of an eligible transferee.
(7)  “Eligible transferee” means a parent, child, or grandchild of an eligible transferor.
(8)  “Real property” means real property as defined in Section 104. Real property does not include any interest in a legal entity.
(9)  “Transfer” includes, and is not limited to, any transfer of the present beneficial ownership of property from an eligible transferor to an eligible transferee through the medium of an inter vivos or testamentary trust.
(10)  “Social security number” also includes a taxpayer identification number issued by the Internal Revenue Service in the case in which the taxpayer is a foreign national who cannot obtain a social security number.
(d)  (1)  The exclusions provided for in subdivision (a) shall not be allowed unless the eligible transferee, the transferee’s legal representative, or the executor or administrator of the transferee’s estate files a claim with the assessor for the exclusion sought and furnishes to the assessor each of the following:
(A)  A written certification by the transferee, the transferee’s legal representative, or the executor or administrator of the transferee’s estate made under penalty of perjury that the transferee is a grandparent, parent, child, or grandchild of the transferor. In the case of a grandparent-grandchild transfer, the written certification shall also include a certification that all the parents of the grandchild or grandchildren who qualify as children of the grandparents were deceased as of the date of the purchase or transfer and that the grandchild or grandchildren did or did not receive a principal residence excludable under paragraph (1) of subdivision (a) from the deceased parents, and that the grandchild or grandchildren did or did not receive real property other than a principal residence excludable under paragraph (2) of subdivision (a) from the deceased parents. The claimant shall provide legal substantiation of any matter certified pursuant to this subparagraph at the request of the county assessor.
(B)  A copy of a written certification by the transferor, the transferor’s legal representative, or the executor or administrator of the transferor’s estate made under penalty of perjury that the transferor is a grandparent, parent, or child of the transferee. The written certification shall also include either or both of the following:
(i)  If the purchase or transfer of real property includes the purchase or transfer of residential real property, a certification that the residential real property is or is not the transferor’s principal residence.
(ii)  If the purchase or transfer of real property includes the purchase or transfer of real property other than the transferor’s principal residence, a certification that other real property of the transferor that is subject to this section has or has not been previously sold or transferred to an eligible transferee, the total amount of full cash value, as defined in subdivision (c), of any real property subject to this section that has been previously sold or transferred by that transferor to eligible transferees, the location of that real property, the social security number of each eligible transferor, and the names of the eligible transferees of that property.
(2)  If the full cash value of the real property purchased by or transferred to the transferee exceeds the permissible exclusion of the transferor or the combined permissible exclusion of the transferors, in the case of a purchase or transfer from two or more joint transferors, taking into account any previous purchases by or transfers to an eligible transferee from the same transferor or transferors, the transferee shall specify in his or her claim the amount and the allocation of the exclusion he or she is seeking. Within any appraisal unit, as determined in accordance with subdivision (e) of Section 51 by the assessor of the county in which the real property is located, the exclusion shall be applied only on a pro rata basis, however, and shall not be applied to a selected portion or portions of the appraisal unit.
(e)  The State Board of Equalization shall design the form for claiming eligibility. Any claim under this section shall be filed:
(1)  For transfers of real property between parents and their children occurring prior to September 30, 1990, within three years after the date of the purchase or transfer of real property for which the claim is filed.
(2)  For transfers of real property between parents and their children occurring on or after September 30, 1990, and for the purchase or transfer of real property between grandparents and their grandchildren occurring on or after March 27, 1996, within three years after the date of the purchase or transfer of real property for which the claim is filed, or prior to transfer of the real property to a third party, whichever is earlier.
(3)  Notwithstanding paragraphs (1) and (2), a claim shall be deemed to be timely filed if it is filed within six months after the date of mailing of a notice of supplemental or escape assessment, issued as a result of the purchase or transfer of real property for which the claim is filed.
(4)  Unless otherwise expressly provided, the provisions of this subdivision shall apply to any purchase or transfer of real property that occurred on or after November 6, 1986.
(f)  The assessor shall report quarterly to the State Board of Equalization all purchases or transfers, other than purchases or transfers involving a principal residence, for which a claim for exclusion is made pursuant to subdivision (d). Each report shall contain the assessor’s parcel number for each parcel for which the exclusion is claimed, the amount of each exclusion claimed, the social security number of each eligible transferor, and any other information the board shall require in order to monitor the one million dollar ($1,000,000) limitation in paragraph (2) of subdivision (a).
(g)  This section shall apply to both voluntary transfers and transfers resulting from a court order or judicial decree. Nothing in this subdivision shall be construed as conflicting with paragraph (1) of subdivision (c) or the general principle that transfers by reason of death occur at the time of death.
(h)  (1)  Except as provided in paragraph (2), this section shall apply to purchases and transfers of real property completed on or after November 6, 1986, and shall not be effective for any change in ownership, including a change in ownership arising on the date of a decedent’s death, that occurred prior to that date.
(2)  This section shall apply to purchases or transfers of real property between grandparents and their grandchildren occurring on or after March 27, 1996, and, with respect to purchases or transfers of real property between grandparents and their grandchildren, shall not be effective for any change in ownership, including a change in ownership arising on the date of a decedent’s death, that occurred prior to that date.

SEC. 11.

 Section 75.41 of the Revenue and Taxation Code is amended to read:

75.41.
 (a)  The auditor shall apply the current year’s tax rate, as defined in Section 75.4, to the supplemental assessment or assessments, computing the amount of taxes that would be due for a full year. If the tax rate for the “roll being prepared” is known, the rate may be used with respect to the fiscal year to which it applies, rather than the current year’s tax rate as defined in Section 75.4. If the tax rate for the “roll being prepared” is not known, the current year’s tax rate as defined in Section 75.4 shall be used. For property on the supplemental roll, the taxes due shall be computed in two equal installments.
(b)  The taxes due shall be adjusted by a proration factor to reflect the portion of the tax year remaining as determined by the date on which the change in ownership occurred or the new construction was completed. In computing the portion of the tax year remaining, the change in ownership or completion of new construction shall be presumed to have occurred on the first day of the month following the date on which change in ownership or completion of new construction occurred.
(c)  (1)  If the presumed date specified in subdivision (b) is February 1, the taxes on the supplemental assessment for the current roll shall be multiplied by 0.42, and the taxes on the supplemental assessment for the roll being prepared shall be multiplied by 1.00.
(2)  If the presumed date specified in subdivision (b) is March 1, the taxes on the supplemental assessment for the current roll shall be multiplied by 0.33, and the taxes on the supplemental assessment for the roll being prepared shall be multiplied by 1.00.
(3)  If the presumed date specified in subdivision (b) is April 1, the taxes on the supplemental assessment for the current roll shall be multiplied by 0.25, and the taxes on the supplemental assessment for the roll being prepared shall be multiplied by 1.00.
(4)  If the presumed date specified in subdivision (b) is May 1, the taxes on the supplemental assessment for the current roll shall be multiplied by 0.17, and the taxes on the supplemental assessment for the roll being prepared shall be multiplied by 1.00.
(5)  If the presumed date specified in subdivision (b) is June 1, the taxes on the supplemental assessment for the current roll shall be multiplied by 0.08, and the taxes on the supplemental assessment for the roll being prepared shall be multiplied by 1.00.
(6)  If the presumed date specified in subdivision (b) is July 1, no supplemental assessment shall be made on the current roll, and the taxes on the supplemental assessment for the roll being prepared shall be multiplied by 1.00.
(7)  If the presumed date specified in subdivision (b) is on or after August 1, and on or before January 1, the following table of factors shall be used:
The taxes on the supplemental
If the presumed
assessment on the current
date is:
roll shall be multiplied by:
August 1 ........................
0.92
September 1 ........................
0.83
October 1 ........................
0.75
November 1 ........................
0.67
December 1 ........................
0.58
January 1 ........................
0.50
(d)  After computing the supplemental taxes due, if the total is twenty dollars ($20) or less, the auditor may cancel the amount as provided by Section 4986.8.
(e)  If the supplemental assessment is a negative amount, the auditor shall follow the procedures of this section to determine the amount of refund to which the assessee may be entitled.

SEC. 12.

 Section 75.60 of the Revenue and Taxation Code is amended to read:

75.60.
 (a)  Notwithstanding any other provision of law, the board of supervisors of an eligible county or city and county, upon the adoption of a method identifying the actual administrative costs associated with the supplemental assessment roll, may direct the county auditor to allocate to the county or city and county, prior to the allocation of property tax revenues pursuant to Chapter 6 (commencing with Section 95) and prior to the allocation made pursuant to Section 75.70, an amount equal to the actual administrative costs, but not to exceed 5 percent of the revenues that have been collected on or after January 1, 1987, due to the assessments under this chapter. Those revenues shall be used solely for the purpose of administration of this chapter, regardless of the date those costs are incurred.
(b)  For purposes of this section:
(1)  “Actual administrative costs” includes only those direct costs for administration, data processing, collection, and appeal that are incurred by county auditors, assessors, and tax collectors. “Actual administrative costs” also includes those indirect costs for administration, data processing, collections, and appeal that are incurred by county auditors, assessors, and tax collectors and are allowed by state and federal audit standards pursuant to the A-87 Cost Allocation Program.
(2)  “Eligible county or city and county” means a county or city and county that has been certified by the State Board of Equalization as an eligible county or city and county. The State Board of Equalization shall certify a county or city and county as an eligible county or city and county only if both of the following are determined to exist:
(A)  The average assessment level in the county or city and county is at least 95 percent of the assessment level required by statute, as determined by the board’s most recent survey of that county or city and county performed pursuant to Section 15640 of the Government Code.
(B)  For any survey of a county assessment roll for the 1996–97 fiscal year and each fiscal year thereafter, the sum of the absolute values of the differences from the statutorily required assessment level described in subparagraph (A) does not exceed 7.5 percent of the total amount of the county’s or city and county’s statutorily required assessed value, as determined pursuant to the board’s survey described in subparagraph (A).
(3)  Each certification of a county or city and county shall be valid only until the next survey made by the board. If a county or city and county has been certified following a survey that includes a sampling of assessments, the board may continue to certify that county or city and county following a survey that does not include sampling if the board finds in the survey conducted without sampling that there are no significant assessment problems in the county or city and county. The board shall, by regulation, define “significant assessment problems” for purposes of this section, and that definition shall include objective standards to measure performance. If the board finds in the survey conducted without sampling that significant assessment problems exist, the board shall conduct a sampling of assessments in that county or city and county to determine if it is an eligible county or city and county. If a county or city and county is not certified by the board, it may request a new survey in advance of the regularly scheduled survey, provided that it agrees to pay for the cost of the survey.

SEC. 13.

 Section 95.31 of the Revenue and Taxation Code, as amended by Senate Bill 218, is amended to read:

95.31.
 (a)  (1)  Notwithstanding any other provision of law, any eligible county may, upon the recommendation of the county assessor, and by resolution of the board of supervisors of that county adopted not later than December 1 of the fiscal year for which it is to first apply, elect to participate in the State-County Property Tax Administration Program.
(2)  Except as specified in paragraph (3), for the purposes of this section, an eligible county shall mean a county in which additional property tax revenue allocated to school entities would reduce the amount of General Fund moneys apportioned to school entities. However, eligibility shall be terminated when, in combination with resources in the Educational Revenue Augmentation Fund, additional property tax revenues allocated to school entities will not result in a reduction in the General Fund apportionments.
(3)  Notwithstanding paragraph (2), both the County of Solano and the County of San Benito shall be deemed eligible counties that may, upon the recommendation of the county assessor, and by resolution of the board of supervisors of the county adopted on or before March 31, 1996, elect to participate in the State-County Property Tax Administration Program.
(b)  (1)  In each of the 1995–96, 1996–97, and 1997–98 fiscal years, an eligible county participating in the State-County Property Tax Administration Program may receive a loan for up to the amount listed in paragraph (3). The loan shall be repaid by June 30 of the fiscal year following the year in which the loan is made. However, at the discretion of the Director of Finance, the loan may be renewed once for an additional 12-month period at the request of the participating county board of supervisors. For the Counties of Fresno, Orange, San Benito, and Solano any loan agreement signed on or before July 31, 1996, shall be deemed a loan agreement for the 1995–96 fiscal year for the purposes of this section.
(2)  If an eligible county elects to participate in the State-County Property Tax Administration Program, it shall enter into a contractual agreement with the Department of Finance. At a minimum, the contractual agreement shall include the following:
(A)  The loan amount, as determined by the Director of Finance.
(B)  Repayment provisions, including the interception of Motor Vehicle License Fee Account moneys apportioned pursuant to Section 11005 to repay the General Fund.
(C)  A listing of the proposed use of the additional resources including, but not limited to:
(i)  Proposed new positions.
(ii)  Increased automation costs.
(D)  An agreement to provide to the Department of Finance, by March 31 of the fiscal year in which the loan is made, a report projecting the impact of the increased funding in the current and subsequent fiscal year.
(3)  Upon request of the Department of Finance, the Controller shall provide a loan to the following counties for up to the amount specified by the Director of Finance, not to exceed the following amounts:
Jurisdiction
Amount  
Alameda ........................
$  2,152,429
Alpine ........................
3,124
Amador ........................
80,865
Butte ........................
381,956
Calaveras ........................
109,897
Colusa ........................
53,957
Contra Costa ........................
2,022,088
Del Norte ........................
36,203
El Dorado ........................
302,795
Fresno ........................
1,165,249
Glenn ........................
59,197
Humboldt ........................
210,806
Imperial ........................
231,673
Inyo ........................
100,080
Kern ........................
1,211,318
Kings ........................
138,653
Lake ........................
117,376
Lassen ........................
54,699
Los Angeles ........................
13,451,670
Madera ........................
212,991
Marin ........................
790,490
Mariposa ........................
46,476
Mendocino ........................
160,435
Merced ........................
298,004
Modoc ........................
24,022
Mono ........................
47,778
Monterey ........................
795,819
Napa ........................
366,020
Nevada ........................
234,292
Orange ........................
6,826,325
Placer ........................
628,047
Plumas ........................
80,606
Riverside ........................
2,358,068
Sacramento ........................
1,554,245
San Benito ........................
90,408
San Bernardino ........................
2,139,938
San Diego ........................
5,413,943
San Francisco ........................
1,013,332
San Joaquin ........................
818,686
San Luis Obispo ........................
736,288
San Mateo ........................
2,220,001
Santa Barbara ........................
926,817
Santa Clara ........................
4,213,639
Santa Cruz ........................
565,328
Shasta ........................
342,399
Sierra ........................
7,383
Siskiyou ........................
91,164
Solano ........................
469,207
Sonoma ........................
1,035,049
Stanislaus ........................
866,155
Sutter ........................
147,436
Tehama ........................
97,222
Trinity ........................
24,913
Tulare ........................
501,907
Tuolumne ........................
126,067
Ventura ........................
1,477,789
Yolo ........................
278,309
Yuba ........................
88,968
(4)  The Department of Finance shall consider any or all of the following items in determining the extent to which a county has satisfied the terms and repaid the loan, pursuant to the contract, as offered under this part:
(A)  County performance as indicated by the State Board of Equalization’s sample survey required pursuant to Section 15640 of the Government Code.
(B)  Performance measures adopted by the California Assessors’ Association.
(C)  Reduction of backlog of assessment appeals and Proposition 8 declines in value.
(D)  County compliance with mandatory audits required by Section 469.
(E)  Reduction of backlogs in new construction, changes in ownership, and supplemental roll.
(F)  Other measures, as determined by the Director of Finance.
(5)  The Director of Finance shall notify the Controller of any participating county that fails to comply with the terms of the agreement, including the repayment of the loan. When the Controller receives notice from the Director of Finance, the Controller shall make an apportionment to the General Fund on behalf of the participating county in the amount of that required payment for the purpose of making that payment. The Controller shall make that payment only from moneys credited to the Motor Vehicle License Fee Account in the Transportation Tax Fund to which the participating county is entitled at that time under Chapter 5 (commencing with Section 11001) of Part 5 of Division 2, and shall thereupon reduce, by the amount of the payment, the subsequent allocation or allocations to which the county would otherwise be entitled under that chapter.
(c)  Funds appropriated for purposes of this section shall be used to enhance the property tax administration system by providing supplemental resources. Amounts provided to any county as a loan pursuant to this section shall not be used to supplant the current level of funding. In order to participate in the State-County Property Tax Administration Program, a participating county shall maintain a base staffing, including contract staff, and total funding level in the county assessor’s office, independent of the loan proceeds provided pursuant to this act, equal to the levels in the 1994–95 fiscal year exclusive of amounts provided to the assessor’s office pursuant to Item 9100-102-001 of the Budget Act of 1994. However, in a county in which the 1994–95 funding level for the assessor’s office was higher than the 1993–94 level, the 1993–94 fiscal year staffing and funding levels shall be considered the base year for purposes of this section.
(d)  A participating county may establish a tracking system whereby a work or function number is assigned to each appraisal or administrative activity. That system should provide statistical data on the number of production units performed by each employee and the positive and negative change in assessed value attributable to the activities performed by each employee.
(e)  Notwithstanding Section 95.3, no amount of funds provided to an eligible county pursuant to this section shall result in any deduction from those property tax administrative costs that are eligible for reimbursement pursuant to Section 95.3.
(f)  At the request of the Department of Finance, the board shall assist the Department of Finance in evaluating contracts entered into pursuant to this section.

SEC. 14.

 Section 107.6 of the Revenue and Taxation Code is amended to read:

107.6.
 (a)  The state or any local public entity of government, when entering into a written contract with a private party whereby a possessory interest subject to property taxation may be created, shall include, or cause to be included, in that contract, a statement that the property interest may be subject to property taxation if created, and that the party in whom the possessory interest is vested may be subject to the payment of property taxes levied on the interest.
(b)  Failure to comply with the requirements of this section shall not be construed to invalidate the contract. The private party may recover damages from the contracting state or local public entity, where the private party can show that without the notice, he or she had no actual knowledge of the existence of a possessory interest tax.
The private party is rebuttably presumed to have no actual knowledge of the existence of a possessory interest tax.
In order to show damages, the private party need not show that he or she would not have entered the contract but for the failure of notice.
(c)  For purposes of this section:
(1)  “Possessory interest” means any interest described in Section 107.
(2)  “Local public entity” shall have the same meaning as that set forth in Section 900.4 of the Government Code and shall include school districts and community college districts.
(3)  “State” means the state and any state agency as defined in Section 11000 of the Government Code and Section 89000 of the Education Code.
(4)  “Damages” mean the amount of the possessory interest tax for the term of the contract.

SEC. 15.

 Section 170 of the Revenue and Taxation Code is amended to read:

170.
 (a)  Notwithstanding any provision of law to the contrary, the board of supervisors may, by ordinance, provide that every assessee of any taxable property, or any person liable for the taxes thereon, whose property was damaged or destroyed without his or her fault, may apply for reassessment of that property as provided herein.
To be eligible for reassessment the damage or destruction to the property shall have been caused by any of the following:
(1)  A major misfortune or calamity, in an area or region subsequently proclaimed by the Governor to be in a state of disaster, if that property was damaged or destroyed by the major misfortune or calamity that caused the Governor to proclaim the area or region to be in a state of disaster. As used in this paragraph, “damage” includes a diminution in the value of property as a result of restricted access to the property where that restricted access was caused by the major misfortune or calamity.
(2)  A misfortune or calamity.
(3)  A misfortune or calamity that, with respect to a possessory interest in land owned by the state or federal government, has caused the permit or other right to enter upon the land to be suspended or restricted. As used in this paragraph, “misfortune or calamity” includes a drought condition such as existed in this state in 1976 and 1977.
The application for reassessment may be filed within the time specified in the ordinance, or, if no time is specified, within 60 days of the misfortune or calamity, by delivering to the assessor a written application requesting reassessment showing the condition and value, if any, of the property immediately after the damage or destruction, and the dollar amount of the damage. The application shall be executed under penalty of perjury, or if executed outside the State of California, verified by affidavit.
An ordinance may be made applicable to a major misfortune or calamity specified in paragraph (1) or to any misfortune or calamity specified in paragraph (2), or to both, as the board of supervisors determines. An ordinance may not be made applicable to a misfortune or calamity specified in paragraph (3), unless an ordinance making paragraph (2) applicable is operative in the county. The ordinance may specify a period of time within which the ordinance shall be effective, and, if no period of time is specified, it shall remain in effect until repealed.
(b)  Upon receiving a proper application, the assessor shall appraise the property and determine separately the full cash value of land, improvements and personalty immediately before and after the damage or destruction. If the sum of the full cash values of the land, improvements and personalty before the damage or destruction exceeds the sum of the values after the damage by five thousand dollars ($5,000) or more, the assessor shall also separately determine the percentage reductions in value of land, improvements and personalty due to the damage or destruction. The assessor shall reduce the values appearing on the assessment roll by the percentages of damage or destruction computed pursuant to this subdivision, and the taxes due on the property shall be adjusted as provided in subdivision (e). However, the amount of the reduction shall not exceed the actual loss.
(c)  The assessor shall notify the applicant in writing of the amount of the proposed reassessment. The notice shall state that the applicant may appeal the proposed reassessment to the local board of equalization within 14 days of the date of mailing the notice. If an appeal is requested within the 14-day period, the board shall hear and decide the matter as if the proposed reassessment had been entered on the roll as an assessment made outside the regular assessment period. The decision of the board regarding the damaged value of the property shall be final, provided that a decision of the local board of equalization regarding any reassessment made pursuant to this section shall create no presumption as regards the value of the affected property subsequent to the date of the damage.
Those reassessed values resulting from reductions in full cash value of amounts, as determined above, shall be forwarded to the auditor by the assessor or the clerk of the local equalization board, as the case may be. The auditor shall enter the reassessed values on the roll. After being entered on the roll, those reassessed values shall not be subject to review, except by a court of competent jurisdiction.
(d)  If no application is made and the assessor determines that within the preceding six months a property has suffered damage caused by misfortune or calamity that may qualify the property owner for relief under an ordinance adopted under this section, the assessor shall provide the last known owner of the property with an application for reassessment. The property owner shall file the completed application within 30 days of notification by the assessor but in no case more than six months after the occurrence of said damage. Upon receipt of a properly completed, timely filed application, the property shall be reassessed in the same manner as required in subdivision (b).
(e)  The tax rate fixed for property on the roll on which the property so reassessed appeared at the time of the misfortune or calamity, shall be applied to the amount of the reassessment as determined in accordance with this section and the assessee shall be liable for: (1) a prorated portion of the taxes that would have been due on the property for the current fiscal year had the misfortune or calamity not occurred, to be determined on the basis of the number of months in the current fiscal year prior to the misfortune or calamity; plus, (2) a proration of the tax due on the property as reassessed in its damaged or destroyed condition, to be determined on the basis of the number of months in the fiscal year after the damage or destruction, including the month in which the damage was incurred. For purposes of applying the preceding calculation in prorating supplemental taxes, the term “fiscal year” means that portion of the tax year used to determine the adjusted amount of taxes due pursuant to subdivision (b) of Section 75.41. If the damage or destruction occurred after January 1 and before the beginning of the next fiscal year, the reassessment shall be utilized to determine the tax liability for the next fiscal year. However, if the property is fully restored during the next fiscal year, taxes due for that year shall be prorated based on the number of months in the year before and after the completion of restoration.
(f)  Any tax paid in excess of the total tax due shall be refunded to the taxpayer pursuant to Chapter 5 (commencing with Section 5096) of Part 9, as an erroneously collected tax or by order of the board of supervisors without the necessity of a claim being filed pursuant to Chapter 5.
(g)  The assessed value of the property in its damaged condition, as determined pursuant to subdivision (b) compounded annually by the inflation factor specified in subdivision (a) of Section 51, shall be the taxable value of the property until it is restored, repaired, reconstructed or other provisions of the law require the establishment of a new base year value.
If partial reconstruction, restoration, or repair has occurred on any subsequent lien date, the taxable value shall be increased by an amount determined by multiplying the difference between its factored base year value immediately before the calamity and its assessed value in its damaged condition by the percentage of the repair, reconstruction, or restoration completed on that lien date.
(h)  (1)  When the property is fully repaired, restored, or reconstructed, the assessor shall make an additional assessment or assessments in accordance with subparagraph (A) or (B) upon completion of the repair, restoration, or reconstruction:
(A)  If the completion of the repair, restoration, or reconstruction occurs on or after January 1, but on or before May 31, then there shall be two additional assessments. The first additional assessment shall be the difference between the new taxable value as of the date of completion and the taxable value on the current roll. The second additional assessment shall be the difference between the new taxable value as of the date of completion and the taxable value to be enrolled on the roll being prepared.
(B)  If the completion of the repair, restoration, or reconstruction occurs on or after June 1, but before the succeeding January 1, then the additional assessment shall be the difference between the new taxable value as of the date of completion and the taxable value on the current roll.
(2)  On the lien date following completion of the repair, restoration, or reconstruction, the assessor shall enroll the new taxable value of the property as of that lien date.
(3)  For purposes of this subdivision, “new taxable value” shall mean the lesser of the property’s (A) full cash value, or (B) factored base year value or its factored base year value as adjusted pursuant to subdivision (c) of Section 70.
(i)  The assessor may apply Chapter 3.5 (commencing with Section 75) of Part 0.5 in implementing this section, to the extent that chapter is consistent with this section.
(j)  This section applies to all counties, whether operating under a charter or under the general laws of this state.
(k)  Any ordinance in effect pursuant to Section 155.1, 155.13, or 155.14 shall remain in effect according to its terms as if that ordinance was adopted pursuant to this section, subject to the limitations of subdivision (b).
( l)  In lieu of subdivision (d), if no application is made and the assessor determines that within the preceding six months a property has suffered damage caused by misfortune or calamity, that may qualify the property owner for relief under an ordinance adopted under this section, the assessor may, with the approval of the board of supervisors, reassess the property as provided in subdivision (b) and notify the last known owner of the property of the reassessment.

SEC. 16.

 Section 201.6 is added to the Revenue and Taxation Code, to read:

201.6.
 (a)  Subject to subdivision (b), property that is exclusively devoted to a public purpose and is owned by a nonprofit entity, the property, assets, profits, and net revenues of which are irrevocably dedicated to the Ventura Port District, shall be deemed to be property that is owned by the Ventura Port District.
(b)  This section shall not be construed to exempt from ad valorem property taxation, including, but not limited to, any ad valorem property tax levied with respect to a possessory interest, either of the following:
(1)  Any property owned by a profit-making organization or concessionaire.
(2)  Any property of the Ventura Port District that is located outside of the boundaries of that district.

SEC. 16.5.

 Section 205.5 of the Revenue and Taxation Code, as amended by Section 1 of Chapter 536 of the Statutes of 1995, is amended to read:

205.5.
 (a)  Property that is owned by, and that constitutes the principal place of residence of, a veteran is exempted from taxation on that part of the full value of the residence that does not exceed forty thousand dollars ($40,000), if the veteran is blind in both eyes or has lost the use of two or more limbs as a result of injury or disease incurred in military service or that does not exceed one hundred thousand dollars ($100,000), if the veteran is totally disabled as a result of injury or disease incurred in military service. The forty thousand dollar ($40,000) exemption shall be sixty thousand dollars ($60,000), and the one hundred thousand dollar ($100,000) exemption shall be one hundred fifty thousand dollars ($150,000), in the case of an eligible veteran whose household income as defined in Section 20504 does not exceed the amounts specified in Section 20585.
(b)  For purposes of this section, “veteran” means either of the following:
(1)  A veteran as specified in subdivision (o) of Section 3 of Article XIII of the Constitution without regard to any limitation contained therein on the value of property owned by the veteran or the veteran’s spouse.
(2)  Any person who would qualify as a veteran pursuant to paragraph (1) except that he or she has, as a result of a service-connected injury or disease died while on active duty in military service. The United States Department of Veterans Affairs shall determine whether an injury or disease is service connected.
(c)  (1)  Property that is owned by, and that constitutes the principal place of residence of, the unmarried surviving spouse of a veteran is exempt from taxation on that part of the full value of the residence that does not exceed forty thousand dollars ($40,000), in the case of a veteran who was blind in both eyes or had lost the use of two or more limbs, or one hundred thousand dollars ($100,000), in the case of a veteran who was totally disabled provided that either of the following conditions is met:
(A)  The deceased veteran during his or her lifetime qualified in all respects for the exemption or would have qualified for the exemption under the laws effective on January 1, 1977, except that the veteran died prior to January 1, 1977.
(B)  The veteran died from a disease that was service connected as determined by the United States Department of Veterans Affairs.
The forty thousand dollar ($40,000) exemption shall be sixty thousand dollars ($60,000), and the one hundred thousand dollar ($100,000) exemption shall be one hundred fifty thousand dollars ($150,000), in the case of an eligible unmarried surviving spouse whose household income as specified in Section 20504 does not exceed the amounts specified in Section 20585.
(2)  Commencing with the 1994–95 fiscal year, property that is owned by, and that constitutes the principal place of residence of, the unmarried surviving spouse of a veteran as described in paragraph (2) of subdivision (b) is exempt from taxation on that part of the full value of the residence that does not exceed one hundred thousand dollars ($100,000). The one hundred thousand dollar ($100,000) exemption shall be one hundred fifty thousand dollars ($150,000), in the case of an eligible unmarried surviving spouse whose household income as specified in Section 20504 does not exceed the amounts specified in Section 20585.
(d)  As used in this section, “property that is owned by a veteran” or “property that is owned by the veteran’s unmarried surviving spouse” includes all of the following:
(1)  Property owned by the veteran with the veteran’s spouse as a joint tenancy, tenancy in common or as community property.
(2)  Property owned by the veteran or the veteran’s spouse as separate property.
(3)  Property owned with one or more other persons to the extent of the interest owned by the veteran, the veteran’s spouse, or both the veteran and the veteran’s spouse.
(4)  Property owned by the veteran’s unmarried surviving spouse with one or more other persons to the extent of the interest owned by the veteran’s unmarried surviving spouse.
(5)  So much of the property of a corporation as constitutes the principal place of residence of a veteran or a veteran’s unmarried surviving spouse when the veteran, or the veteran’s spouse, or the veteran’s unmarried surviving spouse is a shareholder of the corporation and the rights of shareholding entitle one to the possession of property, legal title to which is owned by the corporation. The exemption provided by this paragraph shall be shown on the local roll and shall reduce the full value of the corporate property. Notwithstanding any provision of law or articles of incorporation or bylaws of a corporation described in this paragraph, any reduction of property taxes paid by the corporation shall reflect an equal reduction in any charges by the corporation to the person who, by reason of qualifying for the exemption, made possible the reduction for the corporation.
(e)  For purposes of this section, being blind in both eyes means having a visual acuity of 5/200 or less; losing the use of a limb means that the limb has been amputated or its use has been lost by reason of ankylosis, progressive muscular dystrophies, or paralysis; and being totally disabled means that the United States Department of Veterans Affairs or the military service from which the veteran was discharged has rated the disability at 100 percent or has rated the disability compensation at 100 percent by reason of being unable to secure or follow a substantially gainful occupation.
(f)  An exemption granted to a claimant in accordance with the provisions of this section shall be in lieu of the veteran’s exemption provided by subdivisions (o), (p), (q), and (r) of Section 3 of Article XIII of the Constitution and any other real property tax exemption to which the claimant may be entitled. No other real property tax exemption may be granted to any other person with respect to the same residence for which an exemption has been granted under the provisions of this section; provided, that if two or more veterans qualified pursuant to this section coown a property in which they reside, each is entitled to the exemption to the extent of his or her interest.
(g)  This section shall remain in effect until January 1, 2001, and on that date is repealed, unless a later enacted statute, that is chaptered on or before that date, deletes or extends that date.

SEC. 17.

 Section 205.5 of the Revenue and Taxation Code, as amended by Section 2 of Chapter 536 of the Statutes of 1995, is amended to read:

205.5.
 (a)  Property that is owned by, and that constitutes the principal place of residence of, a veteran is exempted from taxation on that part of the full value of the residence that does not exceed forty thousand dollars ($40,000), if the veteran is blind in both eyes, has lost the use of two or more limbs, or is totally disabled as a result of injury or disease incurred in military service. The exemption shall be sixty thousand dollars ($60,000) in the case of an eligible veteran whose household income as defined in Section 20504 does not exceed the amounts specified in Section 20585.
(b)  For purposes of this section, “veteran” means either of the following:
(1)  A veteran as specified in subdivision (o) of Section 3 of Article XIII of the Constitution without regard to any residency requirement or limitation contained therein on the value of property owned by the veteran or the veteran’s spouse.
(2)  Any person who would qualify as a veteran pursuant to paragraph (1) except that he or she has, as a result of a service-connected injury or a disease that is service related as determined by the United States Department of Veterans Affairs, died while on active duty in military service.
(c)  (1)  Property that is owned by, and that constitutes the principal place of residence of, the unmarried surviving spouse of a veteran is exempt from taxation on that part of the full value of the residence that does not exceed forty thousand dollars ($40,000) provided that either of the following conditions is met:
(A)  The deceased veteran during his or her lifetime qualified in all respects for the exemption or would have qualified for the exemption under the laws effective on January 1, 1977, except that the veteran died prior to January 1, 1977.
(B)  The veteran died from a disease that was service connected as determined by the United States Department of Veterans Affairs.
The exemption shall be sixty thousand dollars ($60,000) in the case of an eligible unmarried surviving spouse whose household income as specified in Section 20504 does not exceed the amounts specified in Section 20585.
(2)  Property that is owned by, and that constitutes the principal place of residence of, the unmarried surviving spouse of a veteran as described in paragraph (2) of subdivision (b) is exempt from taxation on that part of the full value of the residence that does not exceed forty thousand dollars ($40,000). The forty thousand dollar ($40,000) exemption shall be sixty thousand dollars ($60,000), in the case of an eligible unmarried surviving spouse whose household income as specified in Section 20504 does not exceed the amounts specified in Section 20585.
(d)  As used in this section, “property that is owned by a veteran” or “property that is owned by the veteran’s unmarried surviving spouse” includes all of the following:
(1)  Property owned by the veteran with the veteran’s spouse as a joint tenancy, tenancy in common or as community property.
(2)  Property owned by the veteran or the veteran’s spouse as separate property.
(3)  Property owned with one or more other persons to the extent of the interest owned by the veteran, the veteran’s spouse, or both the veteran and the veteran’s spouse.
(4)  Property owned by the veteran’s unmarried surviving spouse with one or more other persons to the extent of the interest owned by the veteran’s unmarried surviving spouse.
(5)  So much of the property of a corporation as constitutes the principal place of residence of a veteran or a veteran’s unmarried surviving spouse when the veteran, or the veteran’s spouse, or the veteran’s unmarried surviving spouse is a shareholder of the corporation and the rights of shareholding entitle one to the possession of property, legal title to which is owned by the corporation. The exemption provided by this paragraph shall be shown on the local roll and shall reduce the full value of the corporate property. Notwithstanding any provision of law or articles of incorporation or bylaws of a corporation described in this paragraph, any reduction of property taxes paid by the corporation shall reflect an equal reduction in any charges by the corporation to the person who, by reason of qualifying for the exemption, made possible the reduction for the corporation.
(e)  For purposes of this section, being blind in both eyes means having a visual acuity of 5/200 or less; losing the use of a limb means that the limb has been amputated or its use has been lost by reason of ankylosis, progressive muscular dystrophies, or paralysis; and being totally disabled means that the United States Department of Veterans Affairs or the military service from which the veteran was discharged has rated the disability at 100 percent or has rated the disability compensation at 100 percent by reason of being unable to secure or follow a substantially gainful occupation.
(f)  An exemption granted to a claimant in accordance with the provisions of this section shall be in lieu of the veteran’s exemption provided by subdivisions (o), (p), (q), and (r) of Section 3 of Article XIII of the Constitution and any other real property tax exemption to which the claimant may be entitled. No other real property tax exemption may be granted to any other person with respect to the same residence for which an exemption has been granted under the provisions of this section; provided, that if two or more veterans qualified pursuant to this section coown a property in which they reside, each is entitled to the exemption to the extent of his or her interest.
(g)  This section shall become operative on January 1, 2001.

SEC. 18.

 Section 401.5 of the Revenue and Taxation Code is amended to read:

401.5.
 The board shall issue to assessors data relating to costs of property, or, with respect to commercial and industrial property, shall, after a public hearing, review and approve commercially available data, and shall issue to assessors other information as in the judgment of the board will promote uniformity in appraisal practices and in assessed values throughout the state. An assessor shall adapt data received pursuant to this section to local conditions and may consider that data together with other factors as required by law in the assessment of property for tax purposes.

SEC. 19.

 Section 401.9 is added to the Revenue and Taxation Code, to read:

401.9.
 (a)  Contracts entered into pursuant to the California Land Conservation Act of 1965 (Chapter 7 (commencing with Section 51200) of Part 1 of Division 1 of Title 5 of the Government Code) and recorded between January 1, 1997, and February 28, 1997, inclusive, shall be deemed timely for purposes of inclusion on the January 1, 1997, property tax roll.
(b)  Land zoned as “timberland” pursuant to Chapter 6.7 (commencing with Section 51100) of Part 1 of Division 1 of Title 5 of the Government Code between January 1, 1997, and February 28, 1997, inclusive, shall be deemed timely for purposes of inclusion on the January 1, 1997, property tax roll.

SEC. 19.5.

 Section 439.2 of the Revenue and Taxation Code is amended to read:

439.2.
 When valuing enforceably restricted historical property, the county assessor shall not consider sales data on similar property, whether or not enforceably restricted, and shall value that restricted historical property by the capitalization of income method in the following manner:
(a)  The annual income to be capitalized shall be determined as follows:
(1)  Where sufficient rental information is available, the income shall be the fair rent that can be imputed to the restricted historical property being valued based upon rent actually received for the property by the owner and upon typical rentals received in the area for similar property in similar use where the owner pays the property tax. When the restricted historical property being valued is actually encumbered by a lease, any cash rent or its equivalent considered in determining the fair rent of the property shall be the amount for which the property would be expected to rent were the rental payment to be renegotiated in the light of current conditions, including applicable provisions under which the property is enforceably restricted.
(2)  Where sufficient rental information is not available, the income shall be that which the restricted historical property being valued reasonably can be expected to yield under prudent management and subject to applicable provisions under which the property is enforceably restricted.
(3)  If the parties to an instrument that enforceably restricts the property stipulate therein an amount that constitutes the minimum annual income to be capitalized, then the income to be capitalized shall not be less than the amount so stipulated.
For purposes of this section, income shall be determined in accordance with rules and regulations issued by the board and with this section and shall be the difference between revenue and expenditures. Revenue shall be the amount of money or money’s worth, including any cash rent or its equivalent, that the property can be expected to yield to an owner-operator annually on the average from any use of the property permitted under the terms by which the property is enforceably restricted.
Expenditures shall be any outlay or average annual allocation of money or money’s worth that can be fairly charged against the revenue expected to be received during the period used in computing the revenue. Those expenditures to be charged against revenue shall be only those which are ordinary and necessary in the production and maintenance of the revenue for that period. Expenditures shall not include depletion charges, debt retirement, interest on funds invested in the property, property taxes, corporation income taxes, or corporation franchise taxes based on income.
(b)  The capitalization rate to be used in valuing owner-occupied single family dwellings pursuant to this article shall not be derived from sales data and shall be the sum of the following components:
(1)  An interest component to be determined by the board and announced no later than September 1 of the year preceding the assessment year and that was the yield rate equal to the effective rate on conventional mortgages as determined by the Federal Housing Finance Board, rounded to the nearest 1/4 percent.
(2)  A historical property risk component of 4 percent.
(3)  A component for property taxes that shall be a percentage equal to the estimated total tax rate applicable to the property for the assessment year times the assessment ratio.
(4)  A component for amortization of the improvements that shall be a percentage equivalent to the reciprocal of the remaining life.
(c)  The capitalization rate to be used in valuing all other restricted historical property pursuant to this article shall not be derived from sales data and shall be the sum of the following components:
(1)  An interest component to be determined by the board and announced no later than September 1 of the year preceding the assessment year and that was the yield rate equal to the effective rate on conventional mortgages as determined by the Federal Housing Finance Board, rounded to the nearest 1/4 percent.
(2)  A historical property risk component of 2 percent.
(3)  A component for property taxes that shall be a percentage equal to the estimated total tax rate applicable to the property for the assessment year times the assessment ratio.
(4)  A component for amortization of the improvements that shall be a percentage equivalent to the reciprocal of the remaining life.
(d)  Unless a party to an instrument that creates an enforceable restriction expressly prohibits the valuation, the valuation resulting from the capitalization of income method described in this section shall not exceed the lesser of either the valuation that would have resulted by calculation under Section 110, or the valuation that would have resulted by calculation under Section 110.1, as though the property was not subject to an enforceable restriction in the base year.
(e)  The value of the restricted historical property shall be the quotient of the income determined as provided in subdivision (a) divided by the capitalization rate determined as provided in subdivision (b) or (c).
(f)  The ratio prescribed in Section 401 shall be applied to the value of the property determined in subdivision (d) to obtain its assessed value.

SEC. 20.

 Section 441 of the Revenue and Taxation Code is amended to read:

441.
 Each person owning taxable personal property, other than a mobilehome subject to Part 13 (commencing with Section 5800), having an aggregate cost of one hundred thousand dollars ($100,000) or more for any assessment year shall file a signed property statement with the assessor. Every person owning personal property which does not require the filing of a property statement or real property shall upon request of the assessor file a signed property statement. Failure of the assessor to request or secure the property statement does not render any assessment invalid.
(a)  The property statement shall be declared to be true under the penalty of perjury and filed with the assessor between the lien date and 5 p.m. on the last Friday in May, annually, or between the lien date and any earlier time as the assessor may appoint.
(b)  If the assessor appoints a time other than the last Friday in May, it shall be no earlier than April 1. In this event the penalty provided by Section 463 shall apply if the property statement is not filed with the assessor by 5 p.m. on the last Friday in May or if all of the following apply:
(1)  The property statement is not filed within the time appointed by the assessor.
(2)  The assessor has given notice by certified or registered mail, or by first-class mail, properly addressed with postage prepaid, no earlier than 15 days after the time appointed by the assessor of nonreceipt of the property statement within the appointed time. If the notice is given by first-class mail, the assessor shall obtain a certificate of mailing issued by the United States Postal Service verifying the fact and date of mailing of the notice.
(3)  The property statement has not been filed with the assessor within 15 days following the date of receipt of the notice, if the notice is given by certified or registered mail, or within 20 days following the date shown on the certificate of mailing, if the notice is given by first-class mail.
(c)  The property statement may be filed with the assessor through the United States mail, properly addressed with postage prepaid. This subdivision shall be applicable to every taxing agency, including, but not limited to, a chartered city and county, or chartered city.
(d)  At any time, as required by the assessor for assessment purposes, every person shall make available for examination information or records regarding his or her property or any other personal property located on premises he or she owns or controls. In this connection details of property acquisition transactions, construction and development costs, rental income, and other data relevant to the determination of an estimate of value are to be considered as information essential to the proper discharge of the assessor’s duties.
(e)  In the case of a corporate owner of property, the property statement shall be signed either by an officer of the corporation or an employee or agent who has been designated in writing by the board of directors to sign the statements on behalf of the corporation.
(f)  In the case of property owned by a bank or other financial institution and leased to an entity other than a bank or other financial institution, the property statement shall be submitted by the owner bank or other financial institution.
(g)  The assessor may refuse to accept any property statement he or she determines to be in error.
(h)  If a taxpayer fails to provide information to the assessor pursuant to subdivision (d) and introduces any requested materials or information at any assessment appeals board hearing, the assessor may request and shall be granted a continuance for a reasonable period of time. The continuance shall extend the two-year period specified in subdivision (c) of Section 1604 for a period of time equal to the period of the continuance.

SEC. 21.

 Section 503 of the Revenue and Taxation Code is amended to read:

503.
 If any taxpayer or the taxpayer’s agent through a fraudulent act or omission causes, or if any fraudulent collusion between the taxpayer or the taxpayer’s agent and the assessor or any of the assessor’s deputies causes, any taxable tangible property to escape assessment in whole or in part, or to be underassessed, the assessor shall assess the property in the lawful amount and add a penalty of 75 percent of the additional assessed value so assessed.

SEC. 22.

 Section 504 of the Revenue and Taxation Code is amended to read:

504.
 There shall be added to any assessment made pursuant to Section 502, except those assessments as are placed on the current roll prior to the time it is originally completed and published, a penalty of 25 percent of the additional assessed value so assessed.

SEC. 23.

 Section 1624.4 of the Revenue and Taxation Code is amended to read:

1624.4.
 (a)  The party affected by an equalization proceeding or his or her agent, or the assessor, may make and file with the clerk of the assessment appeals board in which the proceeding is pending a written statement objecting to the hearing of a matter before a member of the board, and setting forth the facts constituting the ground of the disqualification of the member. Copies of the written statement shall be served by the presenting party on each party in the proceeding and on the board member alleged in the statement to be disqualified.
(b)  Within 10 days after the filing of the statement, or within 10 days after the service of the statement as provided in subdivision (a), whichever is later, the board member alleged therein to be disqualified may file with the clerk his or her consent in writing that the action or proceeding be tried before another member, or may file with the clerk his or her written answer admitting or denying any or all of the allegations contained in the statement and setting forth any additional fact or facts material or relevant to the question of his or her disqualification. The clerk shall transmit a copy of the member’s consent or answer to each party who shall have appeared in the proceeding. Every statement and every answer shall be verified by oath in the manner prescribed by Section 446 of the Code of Civil Procedure for the verification of pleadings. The statement of a party objecting to the member on the ground of the member’s disqualification, shall be presented at the earliest practicable opportunity, after discovery of the facts constituting the ground of the member’s disqualification, and in any event before the commencement of the hearing of any issue of fact in the proceeding before the member.
(c)  No member of the board, who shall deny his or her own disqualification, shall hear or pass upon the question of the disqualification. The question of the member’s disqualification shall be heard and determined by some other member agreed upon by the parties who have appeared in the proceeding, or, in the event of their failing to agree, by a member assigned to act by the clerk. Within five days after the expiration of the time allowed by this section for the member to answer, the clerk shall assign a member, not disqualified, to hear and determine the matter of the disqualification.

SEC. 23.5.

 Section 4831 of the Revenue and Taxation Code is amended to read:

4831.
 (a)  Any error resulting in incorrect entries on the roll may be corrected under this article. The correction may be made at any time after the roll is delivered to the auditor but, except as provided in subdivision (b), shall be made within four years after the making of the assessment that is being corrected. This section does not apply to either of the following:
(1)  Except as provided in subdivision (b), errors involving the exercise of value judgments.
(2)  Escape assessments caused by the assessee’s failure to report the information required by Article 2 (commencing with Section 441) of Chapter 3 of Part 2.
If any error referred to in this subdivision is discovered as the result of an audit of a taxpayer’s books and records, that error may be corrected at any time prior to the expiration of six months after the completion of the audit.
(b)  Any error or omission involving the exercise of a value judgment that arises solely from a failure to reflect a decline in the taxable value of real property as required by paragraph (2) of subdivision (a) of Section 51 shall be corrected within one year after the making of the assessment that is being corrected.
(c)  Taxes that are not a lien or charge on the property assessed may be transferred from the secured roll to the unsecured roll of the corresponding year by the county auditor. These taxes shall be collected in the same manner as other delinquent taxes on the unsecured roll and shall be subject to delinquent penalties in the same manner as taxes transferred to the unsecured roll under Section 5090. The statute of limitations for the collection of those taxes shall commence to run from the date of transfer.

SEC. 24.

 Section 5364 of the Revenue and Taxation Code is amended to read:

5364.
 The board shall establish standards and fix guides or, after a public hearing, shall review and approve commercially available guides, to be used by the county assessor in the assessment of aircraft at market value.

SEC. 25.

 Section 6456 of the Revenue and Taxation Code is amended to read:

6456.
 (a)  Under regulations prescribed by the board, if:
(1)  A tax liability under this part was understated by a failure to file a return required to be filed under this part, by the omission of an amount properly includable therein, or by erroneous deductions or credits claimed on a return, and the understatement of tax liability is attributable to one spouse; or any amount of the tax reported on a return was unpaid and the nonpayment of the reported tax liability is attributable to one spouse,
(2)  The other spouse establishes that he or she did not know of, and had no reason to know of, that understatement or nonpayment, and
(3)  Taking into account whether or not the other spouse significantly benefited directly or indirectly from the understatement or the nonpayment and taking into account all other facts and circumstances, it is inequitable to hold the other spouse liable for the deficiency in tax attributable to that understatement or nonpayment,
then the other spouse shall be relieved of liability for tax (including interest, penalties, and other amounts) to the extent that the liability is attributable to that understatement or nonpayment of tax.
(b)  For purposes of this section, the determination of the spouse to whom items of understatement or nonpayment are attributable shall be made without regard to community property laws.
(c)  This section shall apply to all calendar quarters subject to the provisions of this part, but shall not apply to any calendar quarter that is more than five years from the final date on the board-issued determination, five years from the return due date for nonpayment on a return, or one year from the first contact with the spouse making a claim under this section; or that has been closed by res judicata, whichever is later.
(d)  For purposes of paragraph (2) of subdivision (a), “reason to know” means whether or not a reasonably prudent person would have had reason to know of the understatement or nonpayment.
(e)  For purposes of this section, with respect to a failure to file a return or an omission of an item from the return, “attributable to one spouse” may be determined by whether a spouse rendered substantial service as a retailer of taxable items to which the understatement is attributable. If neither spouse rendered substantial services as a retailer, then the attribution of applicable items of understatement shall be treated as community property. An erroneous deduction or credit shall be attributable to the spouse who caused that deduction or credit to be entered on the return.

SEC. 26.

 Section 6479.3 of the Revenue and Taxation Code is amended to read:

6479.3.
 (a)  Any person whose estimated tax liability under this part averages twenty thousand dollars ($20,000) or more per month, as determined by the board pursuant to methods of calculation prescribed by the board, shall remit amounts due by an electronic funds transfer under procedures prescribed by the board. Any person who collects use tax on a voluntary basis is not required to remit amounts due by electronic funds transfer.
(b)  Any person whose estimated tax liability under this part averages less than twenty thousand dollars ($20,000) per month or any person who voluntarily collects use tax may elect to remit amounts due by electronic funds transfer with the approval of the board. The election shall be operative for a minimum of one year.
(c)  Any person remitting amounts due pursuant to subdivision (a) or (b) shall perform electronic funds transfer in compliance with the due dates set forth in Article 1 (commencing with Section 6451) and Article 1.1 (commencing with Section 6470). Payment is deemed complete on the date the electronic funds transfer is initiated, if settlement to the state’s demand account occurs on or before the banking day following the date the transfer is initiated. If settlement to the state’s demand account does not occur on or before the banking day following the date the transfer is initiated, payment is deemed to occur on the date settlement occurs.
(d)  Any person remitting taxes by electronic funds transfer shall, on or before the due date of the remittance, file a return for the preceding reporting period in the form and manner prescribed by the board. Any person who fails to timely file the required return shall pay a penalty of 10 percent of the amount of taxes, exclusive of prepayments, with respect to the period for which the return is required.
(e)  Any person required to remit taxes pursuant to this article who remits those taxes by means other than appropriate electronic funds transfer shall pay a penalty of 10 percent of the taxes incorrectly remitted.
(f)  Any person who is required to remit taxes pursuant to this article, who fails to timely remit those taxes, and who is issued a deficiency determination pursuant to Section 6481 with respect to those taxes, shall, in addition to any other penalties imposed, pay a 10 percent penalty of the amount of those taxes.
(g)  In determining whether a person’s estimated tax liability averages twenty thousand dollars ($20,000) or more per month, the board may consider tax returns filed pursuant to this part and any other information in the board’s possession.
(h)  The penalties imposed by subdivisions (d), (e), and (f) shall be limited to a maximum of 10 percent of the taxes due, exclusive of prepayments, for any one return.
(i)  The board shall promulgate regulations pursuant to Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code for purposes of implementing this section.

SEC. 27.

 Section 6480.1 of the Revenue and Taxation Code is amended to read:

6480.1.
 (a)  After service of written notification by the board, on the first distribution in this state of motor vehicle fuel subject to the motor vehicle fuel license tax, the distributor shall collect prepayment of retail sales tax from the person to whom the motor vehicle fuel is distributed. The prepayment required to be collected by the distributor constitutes a debt owed by the distributor to this state until paid to the board, until satisfactory proof has been submitted to prove that the retailer of the fuel has paid the retail sales tax to the board, or until a distributor or broker who has consumed the fuel has paid the use tax to the board. Each distributor shall report and pay the prepayment amounts to the board, on a form prescribed by the board, in the period in which the fuel is distributed. On each subsequent distribution of that motor vehicle fuel, each seller, other than the retailer, shall collect from his or her purchaser a prepayment computed using the rate applicable at the time of distribution. Each distributor shall provide his or her purchaser with a receipt or invoice for the collection of the prepayment amounts which shall be separately stated thereon.
(b)  After service of written notification by the board, the broker shall collect prepayment of the retail sales tax from the person to whom the motor vehicle fuel is transferred. The prepayment required to be collected by the broker constitutes a debt owed by the broker to the state until paid to the board, or until satisfactory proof has been submitted to prove that the retailer of the fuel has paid the tax to the board. Each broker shall provide his or her purchaser with a receipt or invoice for the collection of the prepayment amounts which shall be separately stated thereon.
Each broker shall report and pay the prepayment amounts to the board, on a form prescribed by the board, in the period in which the fuel is distributed. The amount of prepayment paid by the broker to his or her vendor shall constitute a credit against the amount of prepayment required to be collected and remitted by the broker to the board.
(c)  A distributor or broker who pays the prepayment and issues a resale certificate to the seller, but subsequently consumes the fuel, shall be entitled to a credit against his or her sales and use taxes due and payable for the period in which the prepayment was made, provided that he or she reports and pays the use tax to the board on the consumption of that fuel.
(d)  The amount of a prepayment paid by the retailer or a distributor or broker who has consumed the fuel to the seller from whom he or she acquired the fuel shall constitute a credit against his or her sales and use taxes due and payable for the period in which the distribution was made. Failure of the distributor or broker to report prepayments or the distributor’s or broker’s failure to comply with any other duty under this article shall not constitute grounds for denial of the credit to the retailer, distributor, or broker, either on a temporary or permanent basis or otherwise. The retailer, distributor, or broker shall be entitled to the credit to the extent of the amount prepaid to his or her supplier as evidenced by purchase documents, invoices, or receipts stating separately the amount of tax prepayment.
(e)  The rate of the prepayment required to be collected during the period from July 1, 1986, through March 31, 1987, shall be four cents ($0.04) per gallon of motor vehicle fuel distributed or transferred.
(f)  On April 1 of each succeeding year, the rate per gallon, rounded to the nearest one-half of one cent, of the required prepayment shall be established by the board based upon 80 percent of the combined state and local sales tax rate established by Sections 6051, 6051.2, 6051.3, and 7202, and Section 35 of Article XIII of the California Constitution on the arithmetic average selling price (excluding sales tax) as determined by the State Energy Resources Conservation and Development Commission, in its latest publication of the “Quarterly Oil Report,” of all grades of gasoline sold through a self-service gasoline station. In the event the “Quarterly Oil Report” is delayed or discontinued, the board may base its determination on other sources of the arithmetic average selling price of gasoline. The board shall make its determination of the rate no later than November 1 of the year prior to the effective date of the new rate. Immediately upon making its determination and setting of the rate, the board shall each year, no later than January 1, notify by mail every distributor, broker, and retailer of motor vehicle fuel. In the event the price of fuel decreases or increases, and the established rate results in prepayments which consistently exceed or are significantly lower than the retailers’ sales tax liability, the board may readjust the rate.

SEC. 27.5.

 Section 6480.1 of the Revenue and Taxation Code is amended to read:

6480.1.
 (a)  After service of written notification by the board, on the first distribution in this state of motor vehicle fuel subject to the motor vehicle fuel license tax, the distributor shall collect prepayment of retail sales tax from the person to whom the motor vehicle fuel is distributed. The prepayment required to be collected by the distributor constitutes a debt owed by the distributor to this state until paid to the board, until satisfactory proof has been submitted to prove that the retailer of the fuel has paid the retail sales tax to the board, or until a distributor or broker who has consumed the fuel has paid the use tax to the board. Each distributor shall report and pay the prepayment amounts to the board, on a form prescribed by the board, in the period in which the fuel is distributed. On each subsequent distribution of that motor vehicle fuel, each seller, other than the retailer, shall collect from his or her purchaser a prepayment computed using the rate applicable at the time of distribution. Each distributor shall provide his or her purchaser with a receipt or invoice for the collection of the prepayment amounts which shall be separately stated thereon.
(b)  (1)  After service of written notification by the board, the broker shall collect prepayment of the retail sales tax from the person to whom the motor vehicle fuel is transferred. The prepayment required to be collected by the broker constitutes a debt owed by the broker to the state until paid to the board, or until satisfactory proof has been submitted to prove that the retailer of the fuel has paid the tax to the board. Each broker shall provide his or her purchaser with a receipt or invoice for the collection of the prepayment amounts which shall be separately stated thereon.
(2)  Each broker shall report and pay the prepayment amounts to the board, on a form prescribed by the board, in the period in which the fuel is distributed. The amount of prepayment paid by the broker to his or her vendor shall constitute a credit against the amount of prepayment required to be collected and remitted by the broker to the board.
(c)  A distributor or broker who pays the prepayment and issues a resale certificate to the seller, but subsequently consumes the fuel, shall be entitled to a credit against his or her sales and use taxes due and payable for the period in which the prepayment was made, provided that he or she reports and pays the use tax to the board on the consumption of that fuel.
(d)  The amount of a prepayment paid by the retailer or a distributor or broker who has consumed the fuel to the seller from whom he or she acquired the fuel shall constitute a credit against his or her sales and use taxes due and payable for the period in which the distribution was made. Failure of the distributor or broker to report prepayments or the distributor’s or broker’s failure to comply with any other duty under this article shall not constitute grounds for denial of the credit to the retailer, distributor, or broker, either on a temporary or permanent basis or otherwise. The retailer, distributor, or broker shall be entitled to the credit to the extent of the amount prepaid to his or her supplier as evidenced by purchase documents, invoices, or receipts stating separately the amount of tax prepayment.
(e)  The rate of the prepayment required to be collected during the period from July 1, 1986, through March 31, 1987, shall be four cents ($0.04) per gallon of motor vehicle fuel distributed or transferred.
(f)  On April 1 of each succeeding year, the rate per gallon, rounded to the nearest one-half of one cent, of the required prepayment shall be established by the board based upon 80 percent of the combined state and local sales tax rate established by Sections 6051, 6051.2, 6051.3, and 7202, and Section 35 of Article XIII of the California Constitution on the arithmetic average selling price (excluding sales tax) as determined by the Department of Energy and Conservation, in its latest publication of the “Quarterly Oil Report,” of all grades of gasoline sold through a self-service gasoline station. In the event the “Quarterly Oil Report” is delayed or discontinued, the board may base its determination on other sources of the arithmetic average selling price of gasoline. The board shall make its determination of the rate no later than November 1 of the year prior to the effective date of the new rate. Immediately upon making its determination and setting of the rate, the board shall each year, no later than January 1, notify by mail every distributor, broker, and retailer of motor vehicle fuel. In the event the price of fuel decreases or increases, and the established rate results in prepayments which consistently exceed or are significantly lower than the retailers’ sales tax liability, the board may readjust the rate.

SEC. 28.

 Section 6480.10 of the Revenue and Taxation Code is amended to read:

6480.10.
 (a)  For purposes of this article, the terms “motor vehicle,” “fuel,” “person,” and “in this state” are defined pursuant to Part 3 (commencing with Section 8601), except as provided in subdivisions (b) and (c).
(b)  For purposes of this article, “fuel” does not include liquefied petroleum gas, compressed natural gas, liquid natural gas, and methanol and ethanol containing not more than 15 percent gasoline or diesel fuels.
(c)  For purposes of this article, “fuel” includes “aircraft jet fuel” as that term is defined by Section 7372, and “diesel fuel” as that term is defined by Section 60022.

SEC. 29.

 Section 6591 of the Revenue and Taxation Code is amended to read:

6591.
 (a)  Any person who fails to pay any tax to the state or any amount of tax required to be collected and paid to the state, except amounts of determinations made by the board under Article 2 (commencing with Section 6481) or Article 3 (commencing with Section 6511) of this chapter, within the time required shall pay a penalty of 10 percent of the tax or amount of the tax, in addition to the tax or amount of tax, plus interest at the modified adjusted rate per month, or fraction thereof, established pursuant to Section 6591.5, from the date on which the tax or the amount of tax required to be collected became due and payable to the state until the date of payment.
(b)  Any person who fails to file a return in accordance with the due date set forth in Section 6451 or the due date established by the board in accordance with Section 6455, shall pay a penalty of 10 percent of the amount of taxes, exclusive of prepayments, with respect to the period for which the return is required.
(c)  The penalties imposed by this section shall be limited to a maximum of 10 percent of the taxes for which the return is required, exclusive of any prepayments, for any one return.

SEC. 30.

 Section 6701 of the Revenue and Taxation Code is amended to read:

6701.
 The board, whenever it deems it necessary to ensure compliance with this part, may require any person subject thereto, to place with it any security that the board may determine. Any security in the form of cash, government bonds, or insured deposits in banks or savings and loan institutions shall be held by the board in trust to be used solely in the manner provided by this section and Section 6815. The amount of the security shall be fixed by the board but, except as noted below, shall not be greater than twice the estimated average liability of persons filing returns for quarterly periods or three times the estimated average liability of persons required to file returns for monthly periods, determined in the manner that the board deems proper, or fifty thousand dollars ($50,000), whichever amount is the lesser. In case of a person who, pursuant to Section 6070 of this part, has been given notice of hearing to show cause why his or her permit or permits should not be revoked, or a person whose permit or permits has been revoked or suspended, the amount of the security shall not be greater than three times the average liability of persons filing returns for quarterly periods or five times the average liability of persons required to file returns for monthly periods, or fifty thousand dollars ($50,000), whichever amount is the lesser. The limitations herein provided apply regardless of the type of security placed with the board. The amount of the security may be increased or decreased by the board subject to the limitations herein provided. Security held by the board shall be released after a three-year period in which the person has filed all returns and paid all tax to the state or any amount of tax required to be collected and paid to the state within the time required. The board may sell the security at public auction if it becomes necessary to do so in order to recover any tax or any amount required to be collected, interest, or penalty due. Notice of the sale may be served upon the person who placed the security personally or by mail; if by mail, service shall be made in the manner prescribed for service of a notice of a deficiency determination and shall be addressed to the person at his or her address as it appears in the records of the board. Upon any sale any surplus above the amounts due shall be returned to the person who placed the security.

SEC. 31.

 Section 6902.3 is added to the Revenue and Taxation Code, to read:

6902.3.
 Notwithstanding of Section 6902, a refund of an overpayment of any tax, penalty, or interest collected by the board by means of levy, through the use of liens, or by other enforcement procedures, shall be approved if a claim for refund is filed within three years of the date of overpayment.

SEC. 32.

 Section 8127.5 is added to the Revenue and Taxation Code, to read:

8127.5.
 When an amount represented by a person who is a taxpayer under this part to a customer as constituting reimbursement for taxes due under this part is computed upon an amount that is not taxable or is in excess of the taxable amount and is actually paid by the customer to the person, the amount so paid shall be returned by the person to the customer upon notification by the Board of Equalization or by the customer that the excess has been ascertained. If the person fails or refuses to do so, the amount so paid, if knowingly or mistakenly computed by the person upon an amount that is not taxable or is in excess of the taxable amount, shall be remitted by that person to this state. Those amounts remitted to the state shall be credited by the Controller on any amounts due and payable under this part on the same transaction from the person by whom it was paid to this state and the balance, if any, shall constitute an obligation due from the person to this state.

SEC. 33.

 Section 8708 of the Revenue and Taxation Code is amended to read:

8708.
 The board or its authorized representative may issue a California fuel trip permit to interstate users and holders of trip permits issued under Section 4004 of the Vehicle Code. The California fuel trip permit shall be valid for the same period as the trip permit issued under Section 4004 of the Vehicle Code. The fee for issuance of a California fuel trip permit is thirty dollars ($30). Other provisions of this article and Article 1 (commencing with Section 8751) of Chapter 4 do not apply to the holder of a California fuel trip permit who uses only fuel brought into this state in the fuel tank of a qualified motor vehicle and fuel purchased from, and delivered into the fuel tank of the qualified motor vehicle by, a vendor. Any use fuel tax paid to a vendor for fuel taken out of the state in the fuel tank of a qualified motor vehicle operated under a California fuel trip permit shall not be refunded to the holder of the permit, notwithstanding any other provisions of this part.
The board may deny the issuance of more than one California fuel trip permit for an interstate user of fuel determined by the board to bring qualified motor vehicles into this state on a regular, ongoing basis. The board shall maintain a file of all California fuel trip permits issued under this section for the purpose of determining the effectiveness of the program and the appropriateness of the fee. The board may enter into an interagency agreement with the Department of Motor Vehicles providing for the issuance of California fuel trip permits by that department.

SEC. 34.

 Section 8876 of the Revenue and Taxation Code is amended to read:

8876.
 Any user who fails to pay any tax, except taxes determined by the board under Article 2 (commencing with Section 8776) or Article 3 (commencing with Section 8801), within the time required shall pay a penalty of 10 percent of the amount of the tax, together with interest on that tax at the modified adjusted rate per month, or fraction thereof, established pursuant to Section 6591.5, from the date on which the tax became due and payable until the date of payment.

SEC. 35.

 Section 9151.5 is added to the Revenue and Taxation Code, to read:

9151.5.
 When an amount represented by a person who is a taxpayer under this part to a customer as constituting reimbursement for taxes due under this part is computed upon an amount that is not taxable or is in excess of the taxable amount and is actually paid by the customer to the person, the amount so paid shall be returned by the person to the customer upon notification by the Board of Equalization or by the customer that the excess has been ascertained. If the person fails or refuses to do so, the amount so paid, if knowingly or mistakenly computed by the person upon an amount that is not taxable or is in excess of the taxable amount, shall be remitted by that person to this state. Those amounts remitted to the state shall be credited by the board on any amounts due and payable under this part on the same transaction from the person by whom it was paid to this state and the balance, if any, shall constitute an obligation due from the person to this state.

SEC. 36.

 Section 9154 of the Revenue and Taxation Code is repealed.

SEC. 37.

 Section 11319 of the Revenue and Taxation Code is amended to read:

11319.
 If any assessment made pursuant to this article results in a tax that is paid after December 10 of the year to which the assessment relates, the tax shall bear interest at the adjusted annual rate established pursuant to Section 19521 from December 10 of the year in which the assessment should have been made to the date the assessment is added to the board roll; provided, however, that no addition shall be made whenever the escape was due to an error, other than an erroneous opinion of value, on the part of the board.

SEC. 38.

 Section 11354 of the Revenue and Taxation Code is amended to read:

11354.
 A jeopardy assessment is delinquent at the time it becomes final, and if unpaid at this time, a penalty of 10 percent of the tax shall be added thereto, plus interest on the amount of tax at the adjusted annual rate established pursuant to Section 19521 from the date on which the tax becomes due and payable until the date of payment.

SEC. 39.

 Section 11405 of the Revenue and Taxation Code is amended to read:

11405.
 If the tax is not paid on or before December 10th following the levy of the tax, a penalty of 10 percent of the amount of the tax shall be added thereto plus interest on the amount of the tax at the adjusted annual rate established pursuant to Section 19521 from December 10th until the date of payment.

SEC. 40.

 Section 11430 of the Revenue and Taxation Code is amended to read:

11430.
 If the additional tax is not paid within the time specified in Section 11429, it is delinquent and a penalty of 10 percent of the amount of the additional tax shall be added thereto, plus interest on the amount of the additional tax at the adjusted annual rate established pursuant to Section 19521 from the date on which the additional tax became due and payable until the time of payment.

SEC. 41.

 Section 11555 of the Revenue and Taxation Code is amended to read:

11555.
 Interest shall be paid upon the amount of any overpayment of tax at the adjusted annual rate established pursuant to Section 19521 upon the amount found to have been illegally collected from the date of payment of the amount to the date of allowance of credit on account of the overpayment or to a date preceding the date of the refund warrant by not more than 30 days, the date to be determined by the board from the first day of the month following the month the tax becomes due. The interest shall be paid:
(a)  In the case of a refund, to the last day of the calendar month following the date upon which the person making the overpayment, if he or she has not already filed a claim, is notified by the board that a claim may be filed or the date upon which the claim is approved by the board, whichever date is the earlier.
(b)  In the case of a credit, to the same date as that to which interest is computed on the tax or amount against which the credit is applied.

SEC. 42.

 Section 11576 of the Revenue and Taxation Code is amended to read:

11576.
 In any judgment, interest shall be allowed at the adjusted annual rate established pursuant to Section 19521 upon the amount found to have been illegally collected from the date of payment of the amount to the date of allowance of credit on account of the judgment or to a date preceding the date of the refund warrant by not more than 30 days, the date to be determined by the board.

SEC. 43.

 Section 30266 is added to the Revenue and Taxation Code, to read:

30266.
 The board may decrease or increase the amount of the determination before it becomes final, but may increase the amount of the determination only if a claim for increase is asserted by the board at or before the hearing. Unless the 25 percent penalty imposed by Section 30205 or 30224 applies to the amount of the determination as originally made or as increased, the claim for increase shall be asserted within eight years after the date the return for the period for which the increase is asserted is due.

SEC. 44.

 Section 30473.5 is added to the Revenue and Taxation Code, to read:

30473.5.
 Any person who possesses, sells, or offers to sell, or buys or offers to buy, any false or fraudulent stamps or meter impressions provided for or authorized under this part with a tax value greater than seven hundred fifty dollars ($750) is guilty of a misdemeanor.

SEC. 45.

 Section 32102 of the Revenue and Taxation Code is amended to read:

32102.
 The board, whenever it deems it necessary to ensure compliance with this part, may require any person subject thereto, to place with it that security as the board may determine, in the form and amount as the board prescribes. Any security in the form of cash, insured deposits in banks and savings and loan institutions, or a bond or bonds duly executed by an admitted surety insurer, payable to the state, conditioned upon faithful performance of all the requirements of this part, and expressly providing for the payment of all license taxes, penalties, and other obligations of the person arising out of this part, shall be held in trust to be used solely in the manner provided by this section.

SEC. 46.

 Section 32291 of the Revenue and Taxation Code is amended to read:

32291.
 If any taxpayer fails to make a return required by this part, the board shall make an estimate, based upon any information available to it, for the period or periods with respect to which the taxpayer failed to make a return of all alcoholic beverages sold in this state by him or her. Upon the basis of this estimate the board shall compute and determine the amount required to be paid to the state, adding to the sum thus fixed a penalty equal to 10 percent thereof. One or more determinations may be made of the amount of tax due for one or for more than one period. The amount of tax so determined shall bear interest at the modified adjusted rate per month, or fraction thereof, established pursuant to Section 6591.5, from the 15th day of the month following the close of the period for which the amount of the tax, or any portion thereof, should have been returned until the date of payment. In making a determination the board may offset overpayments for a period or periods against underpayments for another period or periods and against interest and penalties on the underpayments. If any part of the deficiency for which a determination is made is due to negligence or intentional disregard of this part or authorized rules, an additional penalty of 10 percent of the amount of the determination shall be added. If the neglect or refusal of a taxpayer to file a return as required by this part was due to fraud or an intent to evade the tax, there shall be added to the tax a penalty equal to 25 percent thereof in addition to the 10 percent penalty. The board shall give to the taxpayer written notice of the estimate and determination, the notice to be served personally or by mail in the same manner as prescribed for service of notice by Section 32271.

SEC. 47.

 Section 32457 is added to the Revenue and Taxation Code, to read:

32457.
 Notwithstanding Section 15619 of the Government Code, all information contained in the Vendor’s Report of Beer Shipments into California may be made public.

SEC. 47.5.

 Section 32557 is added to the Revenue and Taxation Code, to read:

32557.
 Any person who knowingly possesses, keeps, stores, or retains for the purpose of sale, or sells or offers to sell, any container or containers of alcoholic beverage with a tax value greater than five hundred dollars ($500) where the taxes imposed under this part have not been paid is guilty of a misdemeanor.

SEC. 48.

 Section 38405 of the Revenue and Taxation Code is amended to read:

38405.
 The board for good cause may extend for not to exceed one month the time for making any return or paying any amount required to be paid under this part. The extension may be granted at any time provided a request therefor is filed with the board within or prior to the period for which the extension may be granted.
Any person to whom an extension is granted shall pay, in addition to the tax, interest at the adjusted annual rate established pursuant to Section 19521 from the date on which the tax would have been due without the extension until the date of payment.

SEC. 49.

 Section 38412 of the Revenue and Taxation Code is amended to read:

38412.
 The amount of the determination, exclusive of penalties, shall bear interest at the adjusted annual rate established pursuant to Section 19521 from the last day of the month following the quarterly period for which the amount or any portion thereof should have been returned until the date of payment.

SEC. 50.

 Section 38423 of the Revenue and Taxation Code is amended to read:

38423.
 The amount of the determination, exclusive of penalties, shall bear interest at the adjusted annual rate established pursuant to Section 19521 from the last day of the month following the quarterly period for which the amount or any portion thereof should have been returned until the date of payment.

SEC. 51.

 Section 38451 of the Revenue and Taxation Code is amended to read:

38451.
 Any person who fails to pay any tax to the state or any amount of tax required to be collected and paid to the state, except amounts of determinations made by the board under Articles 2 or 3 of this chapter, within the time required shall pay a penalty of 10 percent of the tax or amount of the tax, in addition to the tax or the amount of tax, plus interest at the adjusted annual rate established pursuant to Section 19521 from the date on which the tax or the amount of tax required to be collected became due and payable to the state until the date of payment.

SEC. 52.

 Section 38606 of the Revenue and Taxation Code is amended to read:

38606.
 Interest shall be paid upon any overpayment of any amount of tax at the adjusted annual rate established pursuant to Section 19521 from the last day of the calendar month following the quarterly period for which the overpayment was made; but no refund or credit shall be made of any interest imposed upon the person making the overpayment with respect to the amount being refunded or credited.
The interest shall be paid as follows:
(a)  In the case of a refund, to the last day of the calendar month following the date upon which the person making the overpayment, if he or she has not already filed a claim, is notified by the board that a claim may be filed or the date upon which the claim is approved by the board, whichever date is the earlier.
(b)  In the case of a credit, to the same date as that to which interest is computed on the tax or amount against which the credit is applied.

SEC. 53.

 Section 38616 of the Revenue and Taxation Code is amended to read:

38616.
 In any judgment, interest shall be allowed at the adjusted annual rate established pursuant to Section 19521 upon the amount found to have been illegally collected from the date of payment of the amount to the date of allowance of credit on account of the judgment or to a date preceding the date of the refund warrant by not more than 30 days, the date to be determined by the board.

SEC. 54.

 Section 40102 of the Revenue and Taxation Code is amended to read:

40102.
 If the board finds that a person’s failure to make a timely return or payment is due to reasonable cause and circumstances beyond the person’s control, and occurred notwithstanding the exercise of ordinary care and the absence of willful neglect, the person may be relieved of the penalty provided by Sections 40081, 40096, and 40101.
Any person seeking to be relieved of the penalty shall file with the board a statement under penalty of perjury setting forth the facts upon which he or she bases his or her claim for relief.

SEC. 55.

 Section 41052.1 is added to the Revenue and Taxation Code, to read:

41052.1.
 If it deems it necessary in order to ensure payment or to facilitate the collection by the state of the amount of taxes, the board may require returns and payment of the amount of taxes for quarterly periods other than calendar quarters, or for multiples of quarterly periods.

SEC. 56.

 Section 41052.1 is added to the Revenue and Taxation Code, to read:

41052.1.
 The board, if it deems it necessary in order to insure payment to, or facilitate collection by, the state of the amount of taxes, may require returns and payment of the amount of taxes for monthly periods other than calendar monthly periods, but not less than a calendar monthly period.

SEC. 57.

 Section 43451.5 is added to the Revenue and Taxation Code, to read:

43451.5.
 When an amount represented by a person who is a feepayer under this part to a customer as constituting reimbursement for fees due under this part is computed upon an amount that is not subject to that fee or is in excess of that fee amount due and is actually paid by the customer to the person, the amount so paid shall be returned by the person to the customer upon notification by the State Board of Equalization or by the customer that the excess has been ascertained. If the person fails or refuses to do so, the amount so paid, if knowingly or mistakenly computed by the person upon an amount that is not subject to the fee or is in excess of the fee due, shall be remitted by that person to this state. Those amounts remitted to the state shall be credited by the board on any amounts due and payable under this part on the same activity from the person by whom it was paid to this state and the balance, if any, shall constitute an obligation due from the person to this state.

SEC. 58.

 Section 45651 of the Revenue and Taxation Code is amended to read:

45651.
 If the board determines that any amount of fee, penalty, or interest has been paid more than once or has been erroneously or illegally collected or computed, the board shall set forth that fact in its records and certify the amount collected in excess of what was legally due and the person from whom it was collected or by whom paid, and credit the excess amount collected or paid on any amounts then due from the person from whom the excess amount was collected or by whom it was paid under this part, and the balance shall be refunded to the person, or his or her successors, administrators, or executors. Any proposed determination by the board pursuant to this section with respect to an amount in excess of fifty thousand dollars ($50,000) shall be available as a public record for at least 10 days prior to the effective date of that determination.

SEC. 59.

 Section 45651.5 of the Revenue and Taxation Code is amended to read:

45651.5.
 Except as provided in Section 48008 of the Public Resources Code, when an amount represented by a person who is a feepayer under this part to a customer as constituting reimbursement for fees due under this part is computed upon an amount that is not subject to that fee or is in excess of that fee amount due and is actually paid by the customer to the person, the amount so paid shall be returned by the person to the customer upon notification by the State Board of Equalization or by the customer that the excess has been ascertained. If the person fails or refuses to do so, the amount so paid, if knowingly or mistakenly computed by the person upon an amount that is not subject to the fee or is in excess of the fee due, shall be remitted by that person to the State Board of Equalization. Those amounts remitted to the state shall be credited by the board on any amounts due and payable under this part on the same solid waste from the person by whom it was paid to this state and the balance, if any, shall constitute an obligation due from the person to this state.

SEC. 60.

 Section 45655 of the Revenue and Taxation Code is amended to read:

45655.
 Interest shall be computed, allowed, and paid upon any overpayment of any amount of fee at the modified adjusted rate per month established pursuant to Section 6591.5, from the first day of the monthly period following the period for which the overpayment was made. For purposes of this section, “monthly period” means the month commencing on the day after the due date of the payment through the same date as the due date in each successive month. In addition, a refund or credit shall be made of any interest imposed upon the claimant with respect to the amount being refunded or credited.
The interest shall be paid as follows:
(a)  In the case of a refund, to the last day of the monthly period following the date upon which the claimant is notified by the board that a claim may be filed.
(b)  In the case of a credit, to the same date as that to which interest is computed on the fee or amount against which the credit is applied.

SEC. 61.

 Section 46501.5 is added to the Revenue and Taxation Code, to read:

46501.5.
 When an amount represented by a person who is a feepayer under this part to a customer as constituting reimbursement for fees due under this part is computed upon an amount that is not subject to that fee or is in excess of that fee amount due and is actually paid by the customer to the person, the amount so paid shall be returned by the person to the customer upon notification by the State Board of Equalization or by the customer that the excess has been ascertained. If the person fails or refuses to do so, the amount so paid, if knowingly or mistakenly computed by the person upon an amount that is not subject to the fee or is in excess of the fee due, shall be remitted by that person to this state. Those amounts remitted to the state shall be credited by the board on any amounts due and payable under this part on the same activity from the person by whom it was paid to this state and the balance, if any, shall constitute an obligation due from the person to this state.

SEC. 62.

 Section 50139.5 is added to the Revenue and Taxation Code, to read:

50139.5.
 When an amount represented by a person who is a feepayer under this part to a customer as constituting reimbursement for fees due under this part is computed upon an amount that is not subject to that fee or is in excess of that fee amount due and is actually paid by the customer to the person, the amount so paid shall be returned by the person to the customer upon notification by the State Board of Equalization or by the customer that the excess has been ascertained. If the person fails or refuses to do so, the amount so paid, if knowingly or mistakenly computed by the person upon an amount that is not subject to the fee or is in excess of the fee due, shall be remitted by that person to this state. Those amounts remitted to the state shall be credited by the board on any amounts due and payable under this part on the same activity from the person by whom it was paid to this state and the balance, if any, shall constitute an obligation due from the person to this state.

SEC. 63.

 Section 55221.5 is added to the Revenue and Taxation Code, to read:

55221.5.
 When an amount represented by a feepayer subject to this part to a customer as constituting reimbursement for fees subject to this part is computed upon an amount that is not taxable or is in excess of the fee amount and is actually paid by the customer to the feepayer, the amount so paid shall be returned by the feepayer to the customer upon notification by the State Board of Equalization or the customer that the excess has been ascertained. If the feepayer fails or refuses to do so, the amount so paid, if knowingly or mistakenly computed by the feepayer upon an amount that is not subject to the fee or is in excess of the fee amount, shall be remitted by that feepayer to this state. Those amounts remitted to the state by the feepayer shall be credited by the board on any amounts due and payable from the feepayer which are subject to this part and are based on the same activity, and the balance, if any, shall constitute an obligation due from the feepayer to this state.

SEC. 64.

 Section 55225 of the Revenue and Taxation Code is amended to read:

55225.
 Interest shall be computed, allowed, and paid upon any overpayment of any amount of fee at the modified adjusted rate per month established pursuant to Section 6591.5, from the first day of the monthly period following the period during which the overpayment was made. For purposes of this section, “monthly period” means the period commencing on the day after the due date of the payment and continuing through the same date in the immediately following month. In addition, a refund or credit shall be made of any interest imposed upon the claimant with respect to the amount being refunded or credited.
The interest shall be paid as follows:
(a)  In the case of a refund, to the last day of the monthly period following the date upon which the claimant is notified by the board that a claim may be filed.
(b)  In the case of a credit, to the same date as to that to which interest is computed on the fee or amount against which the credit is applied.

SEC. 65.

 Section 55330 of the Revenue and Taxation Code is amended to read:

55330.
 (a)  Every taxpayer is entitled to be reimbursed for any reasonable fees and expenses related to a hearing before the board if all of the following conditions are met:
(1)  The taxpayer files a claim for the fees and expenses with the board.
(2)  The board, in its sole discretion, finds that the action taken by the board staff was unreasonable.
(3)  The board decides that the taxpayer be awarded a specific amount of fees and expenses related to the hearing, which shall be determined by the board.
(b)  To determine whether the board staff has been unreasonable, the board shall consider whether the taxpayer has established that the position of the board staff was not substantially justified.
(c)  The amount of reimbursed fees and expenses shall be limited to the following:
(1)  Fees and expenses incurred after the date of filing petitions for redetermination and claims for refund.
(2)  If the board finds that the staff was unreasonable with respect to certain issues but reasonable with respect to other issues, the amount of reimbursed fees and expenses shall be limited to those that relate to the issues where the staff was found unreasonable.
(d)  Any proposed award by the board pursuant to this section shall be available as a public record for at least 10 days prior to the effective date of the award.

SEC. 66.

 Section 60045 is added to the Revenue and Taxation Code, to read:

60045.
 “Intercity bus” means a bus used to furnish, for compensation, passenger land transportation that is available to the general public, in the case in which either of these conditions is met:
(a)  The transportation is scheduled and along regular or irregular routes.
(b)  The seating capacity of the bus is at least 20 adults, not including the driver.
For purposes of this section, passenger land transportation is available to the general public if the bus is available for hire to more than a limited number of persons, groups, or organizations.

SEC. 67.

 Section 60046 is added to the Revenue and Taxation Code, to read:

60046.
 “Intercity bus operator” includes any person that owns, operates, or controls an intercity bus, as defined in Section 60045.

SEC. 68.

 Section 60101 of the Revenue and Taxation Code is amended to read:

60101.
 (a)  Diesel fuel that is required to be dyed satisfies the dyeing requirement of this part if it meets the dyeing requirements of the United States Environmental Protection Agency and the Internal Revenue Service, including, but not limited to, requirements respecting type, dosage, and timing.
(b)  Marking shall meet the marking requirements of the Internal Revenue Service.
(c)  No person shall operate or maintain a motor vehicle on any public highway in this state with dyed diesel fuel in the fuel supply tank. This subdivision does not apply to uses of dyed diesel fuel on the highway that are lawful under the Internal Revenue Code or regulations promulgated thereunder, if the person is registered as a highway vehicle operator, exempt bus operator, or government entity, or if the person is an intercity bus operator, as defined in Section 60046, who is registered as an interstate user under this part.

SEC. 69.

 Section 60122 of the Revenue and Taxation Code is amended to read:

60122.
 The board or its authorized representative may issue a California fuel trip permit to interstate users and holders of trip permits issued under Section 4004 of the Vehicle Code. The California fuel trip permit shall be valid for the same period as the trip permit issued under Section 4004 of the Vehicle Code. The fee for issuance of a California fuel trip permit is thirty dollars ($30). Other provisions of this article and Article 1 (commencing with Section 60201) of Chapter 6 shall not apply to the holder of a California fuel trip permit who uses only diesel fuel brought into this state in the fuel tank of the qualified motor vehicle and diesel fuel purchased in this state with the diesel fuel tax paid and delivered into the fuel tank of the qualified motor vehicle. Any diesel fuel tax paid to a diesel vendor for diesel fuel taken out of the state in the fuel tank of a qualified motor vehicle operated under a California fuel trip permit shall not be refunded to the holder of the California fuel trip permit, notwithstanding any other provision of this part.
The board may deny the issuance of more than one California fuel trip permit for any interstate user determined by the board to bring vehicles into this state on a regular, ongoing basis. The board shall maintain a file of all permits issued under this section for the purpose of determining the effectiveness of the program and the appropriateness of the fee. The board may enter into an interagency agreement with the Department of Motor Vehicles providing for the issuance of California fuel trip permits by that department.

SEC. 70.

 Section 60207 of the Revenue and Taxation Code is amended to read:

60207.
 Any person who fails to pay the amount of tax shown to be due by that person’s return on or before the last day of the month following the reporting period to which it relates, shall pay a penalty of 10 percent of the tax, together with interest on that tax at the modified adjusted rate per month, or fraction thereof, established pursuant to Section 6591.5, from the date on which the tax became due and payable to the state until the date of payment.

SEC. 71.

 Section 60521.5 is added to the Revenue and Taxation Code, to read:

60521.5.
 When an amount represented by a person who is a taxpayer under this part to a customer as constituting reimbursement for taxes due under this part is computed upon an amount that is not taxable or is in excess of the taxable amount and is actually paid by the customer to the person, the amount so paid shall be returned by the person to the customer upon notification by the State Board of Equalization or by the customer that the excess has been ascertained. If the person fails or refuses to do so, the amount so paid, if knowingly or mistakenly computed by the person upon an amount that is not taxable or is in excess of the taxable amount, shall be remitted by that person to this state. Those amounts remitted to the state shall be credited by the board on any amounts due and payable under this part on the same transaction from the person by whom it was paid to this state and the balance, if any, shall constitute an obligation due from the person to this state.

SEC. 72.

 Section 60632 of the Revenue and Taxation Code is amended to read:

60632.
 (a)  The board shall release any levy or notice to withhold issued pursuant to this part on any property in the event the expense of the sale process exceeds the liability for which the levy is made.
(b)  The Taxpayers’ Rights Advocate may order the release of any levy or notice to withhold issued pursuant to this part, or within 90 days from the receipt of the funds pursuant to a levy or notice to withhold may order the return of any amount up to one thousand five hundred dollars ($1,500) of moneys received, upon his or her finding that the levy or notice to withhold threatens the health or welfare of the taxpayer or his or her spouse or dependents.
(c)  The board shall not sell any seized property until it has first notified the taxpayer in writing of the exemptions from levy under Chapter 4 (commencing with Section 703.010) of Title 9 of the Code of Civil Procedure.
(d)  This section shall not apply to the seizure of any property as a result of a jeopardy assessment.

SEC. 73.

 The Legislature finds and declares with respect to Section 16 of this act that a special law is necessary and that a general law cannot be made applicable within the meaning of Section 16 of Article IV of the California Constitution because of the unique ambiguity that would otherwise exist with respect to the proper property tax treatment of certain property owned by a nonprofit entity that may be properly characterized as the agent of the Ventura Port District.

SEC. 74.

 Section 1.5 of this bill incorporates amendments to Section 7480 of the Government Code proposed by both this bill and AB 3351. It shall only become operative if (1) both bills are enacted and become effective on or before January 1, 1997, but this bill becomes operative first, (2) each bill amends Section 7480 of the Government Code, and (3) this bill is enacted after AB 3351, in which case Section 7480 of the Government Code, as amended by Section 1 of this bill, shall remain operative only until the operative date of AB 3351, at which time Section 1.5 of this bill shall become operative.

SEC. 75.

 Section 9.5 of this bill incorporates amendments to Section 62 of the Revenue and Taxation Code proposed by both this bill, SB 44, and SB 494. It shall only become operative if (1) this bill and SB 44 or SB 494, or both, are enacted and become effective January 1, 1997, (2) each bill amends Section 62 of the Revenue and Taxation Code, and (3) this bill is enacted after SB 44 or SB 494, or both, in which case Section 9 of this bill shall not become operative.

SEC. 76.

 Section 27.5 of this bill incorporates amendments to Section 6480.1 of the Revenue and Taxation Code proposed by both this bill and SB 956. It shall only become operative if (1) both bills are enacted and become effective on January 1, 1997, (2) each bill amends Section 6480.1 of the Revenue and Taxation Code, and (3) this bill is enacted after SB 956, in which case Section 27 of this bill shall not become operative.

SEC. 77.

 Section 56 of this act shall become operative only if Assembly Bill 3204 is chaptered and adds Section 41052.1 to the Revenue and Taxation Code, in which event Section 55 of this act shall not become operative.

SEC. 78.

 Notwithstanding Section 2229 of the Revenue and Taxation Code, no appropriation is made by this act and the state shall not reimburse any local agency for any revenue lost by it pursuant to Section 10 of this act.

SEC. 79.

 No reimbursement is required by Sections 44 and 47.5 of this act pursuant to Section 6 of Article XIII  B of the California Constitution for certain costs that may be incurred by a local agency or school district because in that regard this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII  B of the California Constitution.
However, notwithstanding Section 17610 of the Government Code, if the Commission on State Mandates determines that this act contains other 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. If the statewide cost of the claim for reimbursement does not exceed one million dollars ($1,000,000), reimbursement shall be made from the State Mandates Claims Fund.
Notwithstanding Section 17580 of the Government Code, unless otherwise specified, the provisions of this act shall become operative on the same date that the act takes effect pursuant to the California Constitution.