AB 1151, as introduced, Ting. Tax agent registration.
Existing law requires every assessor to assess all property subject to general property taxation at its full value and to prepare an assessment roll in which all property within the county which it is the assessor’s duty to assess is required to be listed. Existing law requires a county board of equalization or an assessment appeals board to equalize the valuation of taxable property within the county for the purpose of taxation. Existing law authorizes a taxpayer, with respect to each assessment year, to file an application for a reduction in an assessment, as provided, with the county board, which is the county board of supervisors meeting as a county board of equalization of an assessment appeals board.
This bill would, commencing July 1, 2014, prohibit a tax agent, defined as any individual who is employed, is under contract, or otherwise receives compensation to communicate directly with any county official for the purpose of influencing official action relating to the establishment of a taxable value for any property subject to taxation, from representing a tax payer before a county official without first being registered and issued a registration number by the Secretary of State. The bill would require a tax agent to file with the Secretary of State an application for registration that includes specified information and an unspecified registration fee. The bill would make the registration subject to annual renewal and require the payment of an unspecified renewal fee.
This bill would require the Secretary of State to semiannually develop a list of registered tax agents and to make that list publicly available on its Internet Web site. The bill would authorize the Secretary of State to send a tax agent and the represented taxpayer a notice of noncompliance for the failure to comply with these provisions, as specified. The bill would also authorize the Attorney General to pursue civil fines for the failure to comply with these provisions subject to specified procedures. The bill would authorize the Secretary of State to adopt rules and regulations for the purpose of carrying out these provisions.
Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.
The people of the State of California do enact as follows:
Chapter 14.5 (commencing with Section 22260)
2is added to Division 8 of the Business and Professions Code, to
3read:
4
The following definitions apply for the purposes of this
8chapter:
9(a) “County official” means the county assessor, an assessment
10appeals board member, an assessment hearing officer, and any
11other county employee within those offices whose duties are not
12primarily clerical or manual.
13(b) “Influencing official action” means representing a taxpayer
14as an agent in connection with any matter before any county official
15by promoting, supporting, influencing, seeking modification of,
16opposing, or seeking delay of any official action by any means.
17The filing or submitting of required county forms for compliance
18purposes and communication relating to those filings shall not be
19considered influencing official
action.
20(c) “Official action” means establishing a taxable value for any
21property subject to property taxation, including the initial value,
22declines in value, corrections to value, and any other changes in
23the taxable value set, completing an assessment roll showing the
P3 1assessed values of any property, applying all legal exemptions to
2assessments, issuing refunds, establishing payment plans, applying
3penalties, and deciding all property assessment disputes between
4taxpayers and the county assessor.
5(d) “Public official” and “public employee” mean any
6government official or employee of any state or local government
7agency.
8(e) “Tax agent” means any individual who is employed, under
9contract, or otherwise receives compensation to communicate
10directly, or through agents, employees or subcontractors, with any
11county
official for the purpose of influencing official action. A tax
12agent shall not include:
13(1) An elected or appointed public official or public employee
14when acting in his or her official capacity.
15(2) A person representing any of the following:
16(A) Himself or herself.
17(B) An immediate family member.
18(C) An entity of which the person is a partner or owner of 10
19percent or more of the value of the entity.
(a) (1) Each tax agent, within 30 days after July 1,
212014, shall file with the Secretary of State an application for a
22registration containing the following information:
23(A) The tax agent’s full name, business address, business
24telephone number, and business e-mail address, if applicable.
25(B) The name of the tax agent’s employing tax agent firm, if
26applicable.
27(2) A tax agent shall also pay the Secretary of State a registration
28fee in the amount of ____ dollars ($____).
29(b) If the requirements of subdivision (a) are satisfied,
the
30Secretary of State shall issue a tax agent a tax agent registration
31number.
32(c) Beginning July 1, 2014, no tax agent shall represent tax
33payers before a county official without first being registered and
34issued a registration number pursuant to this section.
35(d) A registration issued pursuant to this section shall expire
36one year from its date of issuance unless and until that person
37terminates the registration. An expired registration may be renewed
38annually and the registrant shall pay an annual renewal registration
39fee in the amount of ____ dollars ($____) to the Secretary of State.
P4 1(e) A person may not register or provide services as a tax agent
2if that person:
3(1) Has been convicted of any felony under state or federal tax
4laws.
5(2) Has been convicted of any other criminal offense involving
6dishonesty, breach of trust, or moral turpitude.
7(3) Has been disbarred or suspended for any reason other than
8the failure to pay dues from practice as an attorney, certified public
9accountant, public accountant, or actuary by any duly constituted
10authority of any state, territory, or possession of the United States,
11including a commonwealth, or the District of Columbia, any court
12of record, or any agency, body, or board.
13(f) Fees collected pursuant to this chapter shall be deposited in
14the Secretary of State’s Business Fees Fund established in Section
1512176 of the Government Code.
(a) Within 30 days of any change in any of the
17registration information submitted pursuant to Section 22260.2, a
18tax agent shall file updated registration information with the
19Secretary of State.
20(b) When a tax agent ceases all activities related to influencing
21official action, this fact shall be reported to the Secretary of State.
22(c) It shall be a violation of this chapter for any person to act as
23a tax agent if that person is not registered as a tax agent pursuant
24to Section 22260.2 or if that person was previously registered as
25a tax agent pursuant to Section 22260.2 but that person is no longer
26registered as a tax agent.
The secretary shall semiannually develop a list of
28registered tax agents and make that list available to the public on
29its Internet Web site.
(a) If, after investigation, it is determined by the
31Secretary of State that any tax agent acting on behalf of the
32taxpayer fails to comply with this chapter and the tax agent has
33failed to cure the violation within 30 days of first receiving notice,
34the Secretary of State shall send the tax agent and the taxpayer or
35taxpayers whom the tax agent represents a notice of the tax agent’s
36noncompliance.
37(b) Any person may file a complaint with the Attorney General
38that any tax agent has violated any provision of this chapter.
39(c) For any violation of this chapter, the Attorney General shall
40have the discretion to pursue civil fines for noncompliance or
P5 1violations of this chapter.
The Attorney General shall be designated
2as the enforcement officer for determination and imposition of the
3civil fines and noncompliance fees to be issued.
4(d) Notwithstanding subdivision (c), no administrative fine shall
5be issued if the first violation of this chapter is cured within 30
6days of the date in which the tax agent receives notice of the
7violation from the Attorney General.
Subject to the Administrative Procedure Act (Chapter
93.5 (commencing with Section 11340) of Part 1 of Division 3 of
10Title 2 of the Government Code), the Secretary of State may
11develop rules and regulations for the administration of this chapter.
This chapter shall become operative on July 1, 2014.
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