AB 1151, as amended, 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 taxpayer 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 biennial 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.
P3 1(c) “Official action” means corrections to values and any other
2changes in taxable value set; applying all legal exemptions to
3assessments; and deciding all property assessment disputes between
4taxpayers and a county official, including hearings before an
5assessment hearing officer or a county assessment appeals board.
6(d) “Public official” and “public employee” mean any
7government official or employee of any state or local government
8agency.
9(e) “Tax agent” means any individual who is employed, under
10contract, or otherwise receives compensation to communicate
11directly, or through agents, employees, or subcontractors, with any
12county
official for the purpose of influencing official action. A tax
13agent shall not include:
14(1) An elected or appointed public official or public employee
15when acting in his or her official capacity.
16(2) A person representing any of the following:
17(A) Himself or herself.
18(B) An immediate family member.
19(C) An entity of which the person is a partner or owner of 10
20percent or more of the value of the entity.
21(3) An in-house tax professional or in-house employee
22
representing his or her employer by influencing official action.
(a) (1) Each tax agent, within 30 days after July 1,
242014, shall file with the Secretary of State an application for a
25registration containing the following information:
26(A) The tax agent’s full name, business address, business
27telephone number, and business email address, if applicable.
28(B) The name of the tax agent’s employing tax agent firm, if
29applicable.
30(2) A tax agent shall also pay the Secretary of State a registration
31fee in the amount of ____ dollars ($____).
32(b) If the requirements of subdivision (a) are satisfied, the
33Secretary of State shall issue a tax agent registration number to a
34tax agent.
35(c) Beginning July 1, 2014, no tax agent shall represent
36taxpayers before a county official without first being registered
37and issued a registration number pursuant to this section.
38(d) A registration issued pursuant to this section shall expire
39
two years from its date of issuance unless and until that person
40terminates the registration. An expired registration may be renewed
P4 1biennially if the registrant pays an annual renewal registration fee
2in the amount of ____ dollars ($____) to the Secretary of State.
3(e) A person may not register or provide services as a tax agent
4if that person:
5(1) Has been convicted of any felony under state or federal tax
6laws.
7(2) Has been convicted of any other criminal offense involving
8dishonesty, breach of trust, or moral turpitude.
9(3) Has been disbarred or suspended for any reason other than
10the failure to pay dues from practice as an
attorney, certified public
11accountant, public accountant, actuary, real estate broker, real
12estate salesperson, or licensed real estate appraiser by any duly
13constituted authority of any state, territory, or possession of the
14United States, including a commonwealth, or the District of
15Columbia, any court of record, or any agency, body, or board.
16(f) Fees collected pursuant to this chapter shall be deposited in
17the Secretary of State’s Business Fees Fund established in Section
1812176 of the Government Code.
No county supervisor or member of a county
20assessment appeals board may act as a tax agent in the county in
21which they currently serve in as a county supervisor or as a member
22of a county assessment appeals board.
(a) Within 30 days of any change in any of the
24registration information submitted pursuant to Section 22260.2, a
25tax agent shall file updated registration information with the
26Secretary of State.
27(b) When a tax agent ceases all activities related to influencing
28official action, this fact shall be reported to the Secretary of State.
29(c) It shall be a violation of this chapter for any person to act as
30a tax agent if that person is not registered as a tax agent pursuant
31to Section 22260.2 or if that person was previously registered as
32a tax agent pursuant to Section 22260.2 but that person is no longer
33registered
as a tax agent.
Nothing in this chapter shall be construed to prohibit
35a county from, by ordinance, enacting tax agent reporting
36requirements for campaign contributions to elected officials in that
37county.
The secretary shall semiannually develop a list of
39registered tax agents and make that list available to the public on
40its Internet Web site.
(a) If, after investigation, it is determined by the
2Secretary of State that any tax agent acting on behalf of the
3taxpayer fails to comply with this chapter and the tax agent has
4failed to cure the violation within 30 days of first receiving notice,
5the Secretary of State shall send the tax agent and the taxpayer or
6taxpayers whom the tax agent represents a notice of the tax agent’s
7noncompliance.
8(b) Any person may file a complaint with the Attorney General
9that any tax agent has violated any provision of this chapter.
10(c) For any violation of this chapter, the Attorney General shall
11have the
discretion to pursue civil fines for noncompliance or
12violations of this chapter. The Attorney General shall be designated
13as the enforcement officer for determination and imposition of the
14civil fines and noncompliance fees to be issued.
15(d) Notwithstanding subdivision (c), no administrative fine shall
16be issued if the first violation of this chapter is cured within 30
17days of the datebegin delete inend deletebegin insert onend insert which thebegin delete tax agent receives notice of the Attorney Generalbegin insert sends notice of the violation
18violation from theend delete
19to the tax agentend insert.
Subject to the Administrative Procedure Act (Chapter
213.5 (commencing with Section 11340) of Part 1 of Division 3 of
22Title 2 of the Government Code), the Secretary of State may
23develop rules and regulations for the administration of this chapter.
This chapter shall become operative on July 1, 2014.
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