BILL ANALYSIS                                                                                                                                                                                                    



                                                                     AB 571


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          Date of Hearing:  May 13, 2015


                        ASSEMBLY COMMITTEE ON APPROPRIATIONS


                                 Jimmy Gomez, Chair


          AB  
          571 (Brown) - As Amended May 4, 2015


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          |Policy       |Revenue and Taxation           |Vote:|9 - 0        |
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          Urgency:  No  State Mandated Local Program:  NoReimbursable:  >


          SUMMARY:


          This bill conforms the "reasonable cause" standard for abating  
          penalties related to failure to timely file a change in  
          ownership statement or business property statement to other  
          property tax law penalty abatement provisions, requiring the  
          assessee to establish the failure was due to reasonable cause,  
          the circumstances were beyond the assessee's control, and the  
          failure occurred notwithstanding the exercise of ordinary care  
          in the absence of willful neglect.


          FISCAL EFFECT:









                                                                     AB 571


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          Minor and absorbable administrative costs to the Board of  
          Equalization (BOE); minimal revenue impact.


          COMMENTS:


          1)Purpose.  According to the author, this bill eliminates  
            confusion over the legal standard for abating penalties for  
            failure to file a change in ownership.  The bill changes the  
            standard from one of reasonable cause and not willful neglect  
            to the standard used in other property tax law abatement  
            provisions.


          2)Property Tax Penalty Abatement.  Penalties are assessed  
            against those who fail to file, in a timely manner, change in  
            ownership, or change in control, statements to ensure  
            assessors are informed.  The penalty may be abated if the  
            owner establishes to the satisfaction of BOE or the county  
            assessment appeals board that a failure to file was due to  
            reasonable cause and not willful neglect.  County assessment  
            appeals boards have the authority to abate penalties for a  
            number of violations of the property tax law, however, and  
            this bill aligns the reasonable cause standard with that used  
            in other abatement provisions.





          Analysis Prepared by:Joel Tashjian / APPR. / (916)  
          319-2081













                                                                     AB 571


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