BILL NUMBER: AB 920 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY MAY 7, 2013
AMENDED IN ASSEMBLY APRIL 22, 2013
AMENDED IN ASSEMBLY APRIL 9, 2013
INTRODUCED BY Assembly Member Ting
FEBRUARY 22, 2013
An act to amend Section 5151 of, and to add
Section 2611.8 to , the Revenue and Taxation Code,
relating to taxation.
LEGISLATIVE COUNSEL'S DIGEST
AB 920, as amended, Ting. Property taxation: tax bill
information: interest on refunds. information.
(1) Existing
Existing property tax law requires that each county tax
bill, or a statement accompanying that bill, include specified
information.
This bill would additionally establish the
Property Tax Transparency and Accountability Program as a pilot
program which would, commencing with specified fiscal years, require
participating counties to provide specified information in each
county tax bill, including information that indicates what percentage
of the general ad valorem property tax is allocated to each local
government entity, as specified, and a comprehensive account of all
the services funded by local governments, as specified. This bill
would additionally require those participating counties, after the
cessation of the pilot program, to provide the Legislature with a
report relating to the program, as described.
By imposing a new duty upon local tax officials with respect to
information required to be included in each county tax bill, this
bill would create a state-mandated local program.
The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
This bill would provide that, if the Commission on State Mandates
determines that the bill contains costs mandated by the state,
reimbursement for those costs shall be made pursuant to these
statutory provisions.
(2) Existing property tax law requires the payment of interest on
property tax refunds at the greater of 3% per annum or the county
pool apportioned rate.
This bill would eliminate the requirement of the payment of
interest on those refunds at 3% per annum and would instead require
payment at the county pool apportioned rate.
Vote: majority. Appropriation: no. Fiscal committee: yes.
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 2611.8 is added to the Revenue and Taxation Code,
to read:
2611.8. (a) (1) In order to increase
transparency about the use of general ad valorem property tax
revenues by local governments, the Property Tax Transparency and
Accountability Program is hereby established as a pilot program in
each participating county. Under the pilot program, each
participating county shall include in each county tax bill, in
addition to the information specified in Section 2611.6, the
following information:
(2) Participating counties shall include one geographically small,
one geographically medium, and one geographically large county, and
each participating county shall represent different population
demographics and service needs.
(b) Under the pilot program, each participating county shall
include in each county tax bill, in addition to the information
specified in Section 2611.6, the following information:
(1) Beginning with the 2014-15 fiscal year, information that
indicates what percentage of the general ad valorem property tax is
allocated to each local government jurisdiction including the county,
any city, and any special district, including any school district,
in the tax rate area in which the property is located.
(2) Beginning with the 2015-16 fiscal year, a comprehensive
account of all the services funded by local governments, including,
but not limited to, services provided by the county, any city, and
any special district, including any school district, in the tax rate
area in which the property is located.
(b)
(c) The pilot program shall remain operative through
the 2017-18 fiscal year. Upon cessation of the pilot program, each
participating county shall provide a report to the Legislature
regarding the implementation of the pilot program, including, but not
limited to, any required technology upgrades, workload adjustments,
tax bill designs, costs, and other factors, and any recommendations
regarding how a county can best increase transparency about the use
of general ad valorem property tax revenues by local governments.
SEC. 3. Section 5151 of the Revenue and
Taxation Code is amended to read:
5151. (a) Interest at the county pool apportioned rate shall be
paid, when that interest is ten dollars ($10) or more, on any amount
refunded under Section 5096.7, or refunded to a taxpayer for any
reason whatsoever. However, no interest shall be paid under the
provisions of this section if the taxpayer has been given the notice
required by Section 2635 and has failed to apply for the refund
within 30 days after the mailing of that notice. For purposes of this
section, "county pool apportioned rate" means the annualized rate of
interest earned on the total amount of pooled idle funds from all
accounts held by the county treasurer, in excess of the county
treasurer's administrative costs with respect to that amount, as of
June 30 of the fiscal year preceding the date the refund is
calculated by the auditor. For each fiscal year, the county treasurer
shall advise the Controller of the county pool apportioned rate, and
of computations made in deriving that rate, no later than 90 days
after the end of that fiscal year. Any interest paid on a refund at a
rate provided for by this subdivision as it read prior to January 1,
2009, shall be deemed to be correct.
(b) The interest rate provided for in subdivision (a) does not
apply to interest on refunds of those amounts of tax that became due
and payable before March 1, 1993. Interest on refunds of amounts of a
qualified tax shall be paid at that rate provided for by this
section as it read prior to January 1, 1993. As used in this section,
a "qualified tax" means a tax that became due and payable before
March 1, 1993, and had not been refunded as of April 6, 1995. This
subdivision shall not be construed to affect the interest paid on
refunds of those amounts of tax that became due and payable before
March 1, 1993, and have been refunded as of April 6, 1995.
(c) (1) The interest computation period shall commence with the
date of payment of the tax when any of the following applies:
(A) A timely application for reduction in an assessment was filed,
without regard to whether the refund ultimately results from a
judgment or order of a court, an order of a board of equalization or
assessment appeals board, or an assessor's correction to the
assessment roll.
(B) The refund is pursuant to a roll correction resulting from the
determination or adjustment by the assessor or a local assessment
appeals board of a base year value.
(C) The refund results from a correction to the assessment roll
pursuant to Section 4831 or 4876.
(2) Interest on refunds of taxes on property acquired by a public
agency in eminent domain shall accrue from the date of recordation of
the deed.
(3) In all other cases the interest computation period shall
commence on the date of filing a claim for refund or payment of the
tax, whichever is later. However, in the event of the granting of
property tax relief pursuant to Section 69, 69.3, or 170, interest is
not payable on any resulting refund of taxes, provided that payment
of that refund of taxes is made within 120 days after the county
assessor has sent authorization for the reduction to the county
auditor.
(d) The computation of interest shall terminate as of a date
within 30 days of the date of mailing or personal delivery of the
refund payment.
(e) The interest charged shall be apportioned to the appropriate
funds, as determined by the county auditor.
(f) The amendments made to this section by Section 4 of Chapter
801 of the Statutes of 1996 shall apply to all refunds made after
January 1, 1997.
SEC. 4. SEC. 3. If the Commission on
State Mandates determines that this act contains costs mandated by
the state, reimbursement to local agencies and school districts for
those costs shall be made pursuant to Part 7 (commencing with Section
17500) of Division 4 of Title 2 of the Government Code.