Amended in Senate September 1, 2015

Amended in Assembly May 4, 2015

California Legislature—2015–16 Regular Session

Assembly BillNo. 571


Introduced by Assembly Member Brown

February 24, 2015


An act to amend Sections 463 and 483 of the Revenue and Taxation Code, relating to taxation.

LEGISLATIVE COUNSEL’S DIGEST

AB 571, as amended, Brown. Property taxation: property statement: change in ownership statement: penalty.

Existing law authorizes the county board of equalization or the assessment appeals board to order the penalty abated for failure to file a specified property statement or change in ownership statement, if the assessee establishes to the satisfaction of the county board of equalization or the assessment appeals board that the failure to file the property statement or change in ownership statement within the specified time required was due to reasonable cause and not due to willful neglect and the assessee has filed a written application for abatement of the penalty, as provided.

This bill would instead authorize the penalty to be abated if the assessee establishes that the failure to file the property statement or change in ownership statement within the specified time period was due to reasonable cause and circumstances beyond the assessee’s control, and occurred notwithstanding the exercise of ordinary care in the absence of willful neglect.

Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.

The people of the State of California do enact as follows:

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SECTION 1.  

Section 463 of the Revenue and Taxation Code
2 is amended to read:

3

463.  

(a) If any person who is required by law or is requested
4by the assessor to make an annual property statement fails to file
5an annual property statement within the time limit specified by
6Section 441 or make and subscribe the affidavit respecting his or
7her name and place of residence, a penalty of 10 percent of the
8assessed value of the unreported taxable tangible property of that
9person placed on the current roll shall be added to the assessment
10made on the current roll.

11(b) Notice of any penalty added to the secured roll pursuant to
12this section shall be mailed by the assessor to the assessee at his
13or her address as contained in the official records of the county
14assessor.

15(c) If the assessee establishes to the satisfaction of the county
16board of equalization or the assessment appeals board that the
17failure to file the property statement within the time required by
18 Section 441 was due to reasonable cause and circumstances beyond
19the assessee’s control, and occurred notwithstanding the exercise
20of ordinary care in the absence of willful neglect, it may order the
21penalty abated, provided the assessee has filed with the county
22board written application for abatement of the penalty within the
23time prescribed by law for the filing of applications for assessment
24reductions.

25(d) If the penalty is abated it shall be canceled or refunded in
26the same manner as an amount of tax erroneously charged or
27collected.

28

SEC. 2.  

Section 483 of the Revenue and Taxation Code is
29amended to read:

30

483.  

(a) If the assessee establishes to the satisfaction of the
31county board of equalization or the assessment appeals board that
32the failure to file the change in ownership statement within the
33time required by subdivision (a) of Section 482 was due to
34reasonable cause andbegin delete not due toend deletebegin insert circumstances beyond the
35assessee’s control, and occurred notwithstanding the exercise of
P3    1ordinary care in the absence ofend insert
willful neglect, and has filed the
2statement with the assessor, the county board of equalization or
3the assessment appeals board may order the penalty abated,
4provided the assessee has filed with the county board of
5equalization or the assessment appeals board a written application
6for abatement of the penalty no later than 60 days after the date
7on which the assessee was notified of the penalty.

8If the penalty is abated it shall be canceled or refunded in the
9same manner as an amount of tax erroneously charged or collected.

10(b) The provisions of subdivision (a) shall not apply in any
11county in which the board of supervisors adopts a resolution to
12that effect. In that county the penalty provided for in subdivision
13(a) of Section 482 shall be abated if the assessee files the change
14of ownership statement with the assessor no later than 60 days
15after the date on which the assessee was notified of the penalty.

16If the penalty is abated it shall be canceled or refunded in the
17same manner as an amount of tax erroneously charged or collected.

18(c) (1) If a person or legal entity establishes to the satisfaction
19of the county board of equalization or the assessment appeals board
20that the failure to file the change in ownership statement within
21the time required by subdivision (b) of Section 482 was due to
22reasonable cause and circumstances beyond the assessee’s control,
23and occurred notwithstanding the exercise of ordinary care in the
24absence of willful neglect, and has filed the statement with the
25State Board of Equalization, the county board of equalization or
26the assessment appeals board may order the penalty be abated,
27provided the person or legal entity has filed with the county board
28of equalization or the assessment appeals board a written
29application for abatement of the penalty no later than 60 days after
30the date on which the person or legal entity was notified of the
31penalty by the assessor.

32(2) If a written request to file a change in ownership statement,
33including a written request to file a complete change in ownership
34statement, is mailed by the State Board of Equalization to a person
35or legal entity as specified in subdivision (b) of Section 482, and
36the assessor determines that the written request was based on
37erroneous information in the possession of the board provided by
38any person or entity, including, but not limited to, the Franchise
39Tax Board, a county assessor, or board staff, the assessor shall
40abate the penalty if the person or legal entity required to comply
P4    1with the written request notifies both the board and the county
2assessor responsible for assessing the penalty of the error no later
3than 60 days after the date on which the person or legal entity is
4notified of the penalty.

5(3) If the penalty is abated, it shall be canceled or refunded in
6the same manner as an amount of tax erroneously charged or
7collected.



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