BILL NUMBER: AB 920 INTRODUCED
BILL TEXT
INTRODUCED BY Assembly Member Ting
FEBRUARY 22, 2013
An act to amend Sections 2611.6 and 5151 of the Revenue and
Taxation Code, relating to taxation.
LEGISLATIVE COUNSEL'S DIGEST
AB 920, as introduced, Ting. Property taxation: tax bill
information: interest on refunds.
(1) Existing property tax law requires that each county tax bill,
or a statement accompanying that bill, include specified information.
This bill would additionally require that each county tax bill, or
a statement accompanying that bill, include a list of services
funded by the general ad valorem property tax, as specified.
By imposing a new duty upon local tax officials with respect to
information required to be included in each county tax bill, this
bill would create a state-mandated local program.
The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
This bill would provide that, if the Commission on State Mandates
determines that the bill contains costs mandated by the state,
reimbursement for those costs shall be made pursuant to these
statutory provisions.
(2) Existing property tax law requires the payment of interest on
property tax refunds at the greater of 3% per annum or the county
pool apportioned rate.
This bill would eliminate the requirement of the payment of
interest on those refunds at 3% per annum and would instead require
payment at the county pool apportioned rate.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. The Legislature finds and declares all of the
following:
(a) The general ad valorem property tax supports a large portion
of the public services provided by local governments.
(b) For many taxpayers, the connection between the general ad
valorem property tax and the public services they receive is not
clear. While each parcel tax on a county tax bill is itemized, the
general ad valorem property tax, which is usually the larger amount,
is not.
(c) Increased transparency, by requiring a list of services funded
by the general ad valorem property tax to be listed on the county
tax bill, will promote taxpayer understanding of how the general ad
valorem property tax is used by local governments in the tax rate
area in which the taxpayer's property is located.
SEC. 2. Section 2611.6 of the Revenue and Taxation Code is amended
to read:
2611.6. The following information shall be included in each
county tax bill, whether mailed or electronically transmitted, or in
a separate statement accompanying the bill:
(a) The full value of locally assessed property, including
assessments made for irrigation district purposes in accordance with
Section 26625.1 of the Water Code.
(b) The tax rate required by Article XIII A of the California
Constitution.
(c) The rate or dollar amount of taxes levied in excess of the
1-percent limitation to pay for voter-approved indebtedness incurred
before July 1, 1978, or bonded indebtedness for the acquisition or
improvement of real property approved by two-thirds of the voters on
or after June 4, 1986.
(d) The amount of any special taxes and special assessments
levied.
(e) The amount of any tax rate reduction pursuant to Section 96.8,
with the notation: "Tax reduction by (name of jurisdiction)."
(f) The amount of any exemptions. Exemptions reimbursable by the
state shall be shown separately.
(g) The total taxes due and payable on the property covered by the
bill.
(h) Instructions on tendering payment, including the name and
mailing address of the tax collector.
(i) The billing of any special purpose parcel tax as required by
paragraph (2) of subdivision (b) of Section 53087.4 of the Government
Code, or any successor to that paragraph.
(j) (1) A list of services funded by the general ad valorem
property tax, including, but not limited to, services provided by the
county, any city, and any special district, including any school
district, in the tax rate area in which the property is located.
(2) The list of services shall identify the dollar amount paid by
the taxpayer for each service and shall be ordered such that the
largest expenditure is listed first, with subsequent services ordered
by decreasing amounts.
(j)
(k) Information specifying all of the following:
(1) That if the taxpayer disagrees with the assessed value as
shown on the tax bill, the taxpayer has the right to an informal
assessment review by contacting the assessor's office.
(2) That if the taxpayer and the assessor are unable to agree on a
proper assessed value pursuant to an informal assessment review, the
taxpayer has the right to file an application for reduction in
assessment for the following year with the county board of
equalization or the assessment appeals board, as applicable, and the
time period during which the application will be accepted.
(3) The address of the clerk of the county board of equalization
or the assessment appeals board, as applicable, at which forms for an
application for reduction in assessment may be obtained.
SEC. 3. Section 5151 of the Revenue and Taxation Code is amended
to read:
5151. (a) Interest at the greater of 3 percent per annum
or the county pool apportioned rate shall be paid, when
that interest is ten dollars ($10) or more, on any amount refunded
under Section 5096.7, or refunded to a taxpayer for any reason
whatsoever. However, no interest shall be paid under the provisions
of this section if the taxpayer has been given the notice required by
Section 2635 and has failed to apply for the refund within 30 days
after the mailing of that notice. For purposes of this section,
"county pool apportioned rate" means the annualized rate of interest
earned on the total amount of pooled idle funds from all accounts
held by the county treasurer, in excess of the county treasurer's
administrative costs with respect to that amount, as of June 30 of
the fiscal year preceding the date the refund is calculated by the
auditor. For each fiscal year, the county treasurer shall advise the
Controller of the county pool apportioned rate, and of computations
made in deriving that rate, no later than 90 days after the end of
that fiscal year. Any interest paid on a refund at a rate provided
for by this subdivision as it read prior to January 1, 2009, shall be
deemed to be correct.
(b) The interest rate provided for in subdivision (a) does not
apply to interest on refunds of those amounts of tax that became due
and payable before March 1, 1993. Interest on refunds of amounts of a
qualified tax shall be paid at that rate provided for by this
section as it read prior to January 1, 1993. As used in this section,
a "qualified tax" means a tax that became due and payable before
March 1, 1993, and had not been refunded as of April 6, 1995. This
subdivision shall not be construed to affect the interest paid on
refunds of those amounts of tax that became due and payable before
March 1, 1993, and have been refunded as of April 6, 1995.
(c) (1) The interest computation period shall commence with the
date of payment of the tax when any of the following applies:
(A) A timely application for reduction in an assessment was filed,
without regard to whether the refund ultimately results from a
judgment or order of a court, an order of a board of equalization or
assessment appeals board, or an assessor's correction to the
assessment roll.
(B) The refund is pursuant to a roll correction resulting from the
determination or adjustment by the assessor or a local assessment
appeals board of a base year value.
(C) The refund results from a correction to the assessment roll
pursuant to Section 4831 or 4876.
(2) Interest on refunds of taxes on property acquired by a public
agency in eminent domain shall accrue from the date of recordation of
the deed.
(3) In all other cases the interest computation period shall
commence on the date of filing a claim for refund or payment of the
tax, whichever is later. However, in the event of the granting of
property tax relief pursuant to Section 69, 69.3, or 170, interest is
not payable on any resulting refund of taxes, provided that payment
of that refund of taxes is made within 120 days after the county
assessor has sent authorization for the reduction to the county
auditor.
(d) The computation of interest shall terminate as of a date
within 30 days of the date of mailing or personal delivery of the
refund payment.
(e) The interest charged shall be apportioned to the appropriate
funds, as determined by the county auditor.
(f) The amendments made to this section by Section 4 of Chapter
801 of the Statutes of 1996 shall apply to all refunds made after
January 1, 1997.
SEC. 4. If the Commission on State Mandates determines that this
act contains costs mandated by the state, reimbursement to local
agencies and school districts for those costs shall be made pursuant
to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of
the Government Code.