Amended in Assembly April 22, 2013

Amended in Assembly April 9, 2013

California Legislature—2013–14 Regular Session

Assembly Bill No. 920

Introduced by Assembly Member Ting

February 22, 2013

An act to amend begin delete Sections 2611.6 and end delete begin insert Section end insert 5151 of begin insert , and to add Section 2611.8 to, end insert the Revenue and Taxation Code, relating to taxation.

LEGISLATIVE COUNSEL’S DIGEST

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

(1) Existing property tax law requires that each county tax bill, or a statement accompanying that bill, include specified information.

This bill would additionally begin insert establish the Property Tax Transparency and Accountability Program as a pilot program which would, commencing with specified fiscal years, end insert require begin delete that end delete begin insert participating counties to provide specified information in end insert each county tax bill, begin delete or a statement accompanying that bill, include end delete begin insert including end insert information that indicates what percentage of the general ad valorem property tax is allocated to each local government entity, as specified, and a comprehensive account of all the services funded by local governments, as specified. begin insert This bill would additionally require those participating counties, after the cessation of the pilot program, to provide the Legislature with a report relating to the program, as described. end insert

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.

begin delete

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) Beginning with the 2014-15 fiscal year, information that
indicates what percentage of the general ad valorem property tax
is allocated to each local government jurisdiction including the
county, any city, and any special district, including any school
district, in the tax rate area in which the property is located.

(k) Beginning with the 2015-16 fiscal year, a comprehensive
account of all the services funded by local governments, including,
but not limited to, services provided by the county, any city, and
any special district, including any school district, in the tax rate
area in which the property is located.

(l) 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.

end delete

begin insert

begin insert SEC. 2. end insert   

end insert

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

begin insert

begin insert 2611.8. end insert   

(a) In order to increase transparency about the use
of general ad valorem property tax revenues by local governments,
the Property Tax Transparency and Accountability Program is
hereby established as a pilot program in each participating county.
Under the pilot program, each participating county shall include
in each county tax bill, in addition to the information specified in
Section 2611.6, the following information:

(1) Beginning with the 2014-15 fiscal year, information that
indicates what percentage of the general ad valorem property tax
is allocated to each local government jurisdiction including the
county, any city, and any special district, including any school
district, in the tax rate area in which the property is located.

(2) Beginning with the 2015-16 fiscal year, a comprehensive
account of all the services funded by local governments, including,
but not limited to, services provided by the county, any city, and
any special district, including any school district, in the tax rate
area in which the property is located.

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

end insert

SEC. 3.  

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

5151.  

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

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

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

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

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

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

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

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

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

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

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

SEC. 4.  

 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.