Amended in Senate August 5, 2014

Amended in Senate August 4, 2014

Amended in Assembly May 23, 2014

Amended in Assembly April 22, 2014

California Legislature—2013–14 Regular Session

Assembly Bill No. 2756

Introduced by Committee on Revenue and Taxation (Bocanegra (Chair), Gordon, Mullin, Pan, V. Manuel Pérez, and Ting)

March 24, 2014

An act to amend Sections 60501 and 60505.5 of begin insert , to amend and renumber end insert begin insert Section 674 of, and to add Article 8.5 (commencing with Section 674) to Chapter 3 of Part 2 of Division 1 of, end insert the Revenue and Taxation Code, relating to taxation.

LEGISLATIVE COUNSEL’S DIGEST

AB 2756, as amended, Committee on Revenue and Taxation. begin delete Diesel Fuel Tax Law: reimbursements. end delete begin insert Tax administration: property taxes and diesel fuel taxes. end insert

begin insert

(1) Existing law provides for the annual assessment and collection of property taxes by each county, and provides for the state administration of the property tax by the State Board of Equalization.

end insert begin insert

The California Constitution generally limits ad valorem taxes on real property to 1% of the full cash value of that property. For purposes of this limitation, “full cash value” is defined as the assessor’s valuation of real property as shown on the 1975-76 tax bill under “full cash value” or, thereafter, the appraised value of that real property when purchased, newly constructed, or a change in ownership has occurred.

end insert begin insert

Existing property tax law requires a transferee of real property or a manufactured home that is locally assessed to file a change in ownership statement with the assessor of the county in which the property or manufactured home is located, and also requires a corporation, partnership, limited liability company, or other legal entity to file a change in ownership statement with the board.

end insert begin insert

Existing property tax law also includes various property tax exemptions as authorized or established by the California Constitution.

end insert begin insert

This bill would prohibit a person from making decisions with regard to change in ownership, or with regard to property tax exemptions, except a homeowners’ exemption claim, as an employee of the state, a county, or a city and county, unless he or she is the holder of a valid assessment analyst certificate issued by the board. The bill would require the board to provide for the examination of applicants for a certificate and would authorize the board to contract with the Department of Human Resources to give the examinations. The bill would provide for an advanced certificate, pursuant to a course of study prescribed by, and on examination prepared by, the board. The bill would require prescribed annual training for certification, including advanced certification. Failure to complete training as required would be grounds for revocation. The bill would also authorize the board to issue temporary certificates and interim certificates under prescribed circumstances. This bill would specify that its provision are not to be construed to impede assessors from managing their staff resources efficiently regarding exemption applications and change in ownership documents, provided that noncertificated staff are not responsible for making exemption or change in ownership decisions.

end insert begin delete

The

end delete

begin insert (2) end insert begin insert   end insert begin insert The end insert Diesel Fuel Tax Law imposes a tax upon the removal, entry, sale, delivery, or specified use of diesel fuel, at a specified rate per gallon. That law provides for a reimbursement of the amount of that tax to persons who have used that tax-paid fuel in specified nontaxable uses, which is allowed through a claim for refund.

This bill would allow a claim for refund for amounts of tax paid on the biodiesel fuel portion of dyed blended biodiesel fuel removed from an approved terminal at the terminal rack, as provided, to the extent a supplier can show that the tax on that biodiesel fuel has been paid by the same supplier.

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

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

begin insert

begin insert SECTION 1. end insert   

end insert begin insert

The Legislature finds and declares all of the
following:

end insert begin insert

(a)  County assessors are required to follow complex state laws
in the performance of their duties.

end insert begin insert

(b)  The application of those laws is intended to provide
consistent and accurate assessment practices across the state.

end insert begin insert

(c)  It is the intent of the Legislature that the interests of
taxpayers be protected by ensuring that decisions regarding
eligibility of a property for exemption, other than homeowners’
exemptions, or whether a transaction is a change in ownership or
qualifies for an exclusion from a change in ownership, or both,
be made by staff who is certified to make those decisions.

end insert begin insert

(d)  It is further the intent of the Legislature that implementation
of education and certification requirements required by Section 3
of this act be undertaken in the most efficient and economical
manner, utilizing existing resources of California county assessors
with the advice and counsel of the State Board of Equalization.

end insert begin insert

(e)  It is further the intent of the Legislature that Section 3 of
this act be construed as an act necessary for the implementation
of Article XIII A of the California Constitution and, as such, is not
a program or higher level of service mandated by the state.

end insert

begin insert

begin insert SEC. 2. end insert   

end insert

begin insert Section 674 of the end insert begin insert Revenue and Taxation Code end insert begin insert is
amended and renumbered to read: end insert

begin delete 674. end delete
begin insert 680. end insert   

(a) All contracts for the performance of appraisal work
for assessors by any person who is not an employee of the state,
any county, or any city shall be entered into only after at least two
competitive bids and shall be entered into either on a fixed fee
basis or on the basis of an hourly rate with a maximum dollar
amount.

(b) In addition to any provision in the Real Estate Appraisers’
Licensing and Certification Law (Part 3 (commencing with Section
11300) of Division 4 of the Business and Professions Code), a
contractor shall maintain the confidentiality of assessee information
and records as provided in Sections 408, 451, and 481 that is
obtained in performance of the contract.

(1) A request for information and records from an assessee shall
be made by the assessor. The assessor may authorize a contractor
to request additional information or records, if needed. However,
a contractor shall not request that information or records without
the written authorization of the assessor.

(2) A contractor shall not provide appraisal data in his or her
possession to the assessor or a contractor of another county who
is not a party to the contract. An assessor may provide that data to
the assessor of another county as provided in subdivision (b) of
Section 408.

(c) A contractor may not retain information contained in, or
derived from, an assessee’s confidential information and records
after the conclusion, termination, or nonrenewal of the contract.
Within 90 days of the conclusion, termination, or nonrenewal of
the contract, the contractor shall:

(1) Purge and return to the assessor any assessee records,
whether originals, copies, or electronically stored, provided by the
assessor or otherwise obtained from the assessee.

(2) Provide a written declaration to the assessor that the
contractor has complied with this subdivision.

(d) All contracts entered into pursuant to subdivision (a) shall
include a provision incorporating the requirements of subdivisions
(b) and (c). This provision of the contract shall use language that
is prescribed by the begin delete State Board of Equalization end delete begin insert board end insert .

(e) For purposes of this section, a “contractor” means any person
who is not an employee of the state, any county, or any city who
performs appraisal work pursuant to a contract with an assessor.

begin insert

begin insert SEC. 3. end insert   

end insert

begin insert Article 8.5 (commencing with Section 674) is added
to Chapter 3 of Part 2 of Division 1 of the end insert begin insert Revenue and Taxation
Code end insert begin insert , to read: end insert

begin insert

 

Article begin insert 8.5. end insert   Assessment Analyst Certificates

 

begin insert 674. end insert   

(a) A person shall not make decisions with regard to
changes in ownership as an employee of the state, a county, or a
city and county, unless he or she is the holder of a valid assessment
analyst certificate issued by the board.

(b) A person shall not make decisions with regard to property
tax exemptions, except for homeowners’ exemption claims, as an
employee of the state, a county, or a city and county, unless he or
she is the holder of a valid assessment analyst certificate issued
by the board.

(c) The board shall provide for the examination of applicants
for an assessment analyst certificate and may contract with the
Department of Human Resources to give the examinations.
Examinations shall be prepared by the board with the advice and
assistance of a committee of five assessors selected by the
California Assessors’ Association for this purpose. No certificate
shall be issued to any person who has not attained a passing grade
in the examination and demonstrated to the board that he or she
is competent to make change in ownership or exemption decisions,
or both, as that competency is defined in regulations duly adopted
by the board. However, any applicant for a certificate who is
denied a certificate pursuant to this section shall have a right to
a review of that denial in accordance with the Administrative
Procedure Act (Chapter 5 (commencing with Section 11500) of
Part 1 of Division 3 of Title 2 of the Government Code).

(d) This section does not apply to a person holding a valid
appraiser’s or advanced appraiser’s certificate issued by the
board.

(e) The board shall not impose any charge upon a county or
city and county or an applicant for an examination or certification
under this section or for training conducted by the board under
Section 675.

begin insert 675. end insert   

(a) (1) In order to retain a valid certificate, every
certified assessment analyst shall complete at least 24 hours of
training conducted or approved by the board in each one-year
period.

(2) Any training time in excess of the 24-hour minimum that is
accumulated in any one year shall be carried over as credit for
future training requirements, with a limit of three years in which
the carryover time may be credited.

(3) Failure to complete training in accordance with this
subdivision shall constitute grounds for revocation of a certificate.
A proceeding to revoke shall be conducted in accordance with the
Administrative Procedure Act (Chapter 5 (commencing with
Section 11500) of Part 1 of Division 3 of Title 2 of the Government
Code).

(4) Training shall include, but not be limited to, new
developments in applicable case law, statutory law, and
administrative rules.

(b) (1) The board shall issue an advanced assessment analyst
certificate for an applicant that has held a certificate issued in
accordance with Section 674 for at least three years and has done
at least one of the following:

(A) Has successfully completed an advanced course of study
prescribed pursuant to paragraph (2).

(B) Has passed an advanced level examination prepared
pursuant to paragraph (2).

(2) The board, with the advice and assistance of five assessors
selected by the California Assessors’ Association, shall prescribe
an advanced course of study and prepare the advanced level
examination.

(3) In order to retain a valid advanced assessment analyst
certificate, every holder shall complete at least 12 hours of training
in each one-year period.

(4) Any training time for the advanced assessment analyst
certificate that is in excess of the 12-hour minimum accumulated
in any one year shall be carried over as a credit for future training
requirements, with a limit of two years in which the carryover time
may be credited.

(5) Failure to complete training in accordance with this
subdivision shall constitute grounds for revocation of an advanced
assessment analyst certificate. A proceeding to revoke shall be
conducted in accordance with the Administrative Procedure Act
(Chapter 5 (commencing with Section 11500) of Part 1 of Division
3 of Title 2 of the Government Code).

(6) Training to retain the advanced assessment analyst
certificate shall include, but not be limited to, new developments
in applicable case law, statutory law, and administrative rules.

begin insert 676. end insert   

(a) At the time of certification, each applicant shall
disclose, on forms provided by the board, his or her financial
interest in any legal entity. Thereafter, the form shall be completed
annually.

(b) If the applicant is also required to annually file with the
Fair Political Practices Commission pursuant to Article 3
(commencing with Section 87300) of Chapter 7 of Title 9 of the
Government Code, a duplicate of that filing shall meet the
requirements of this section.

begin insert 677. end insert   

The board may issue a temporary certificate to a person
who is newly employed by the state, a county, or a city and county
in order to afford the person the opportunity to apply for and take
an examination, the successful passage of which would qualify the
person for a certificate pursuant to this article. The board shall
not issue a temporary certificate for a duration that exceeds one
year, unless the person has been duly elected or appointed to the
office of assessor. The board shall not renew a temporary
certificate.

begin insert 678. end insert   

The board may issue an interim certificate to a person
who is currently employed by the state, a county, or a city and
county, and who is making change in ownership or exemption
decisions in order to afford that person the opportunity to apply
for and take an examination, the successful passage of which would
qualify the person for a certificate pursuant to this article. The
board shall not issue an interim certificate for a duration that
exceeds four years, unless the person has been duly elected or
appointed to the office of assessor. The board shall not renew an
interim certificate.

begin insert 679. end insert   

This article shall not be construed to impede an assessor
from managing his or her staff resources efficiently, and in a
manner that allows noncertificated staff to prepare and work with
exemption applications and change in ownership documents,
provided that the noncertificated staff are not responsible for
making exemption or change in ownership decisions.

end insert

begin delete SECTION 1. end delete
begin insert SEC. 4. end insert   

Section 60501 of the Revenue and Taxation Code is
amended to read:

60501.  

Persons who have paid a tax for diesel fuel lost, sold,
or removed as provided in paragraph (4) of subdivision (a), or used
in a nontaxable use, other than on a farm for farming purposes or
in an exempt bus operation, shall, except as otherwise provided in
this part, be reimbursed and repaid the amount of the tax.

(a) Except as otherwise provided in subdivision (b), a claim for
refund with respect to diesel fuel is allowed under this section only
if all of the following apply:

(1) Tax was imposed on the diesel fuel to which the claim
relates.

(2) The claimant bought or produced the diesel fuel and did not
sell or resell it in this state except as provided in paragraph (4).

(3) The claimant has filed a timely claim for refund that contains
the information required under subdivision (b) and the claim is
supported by the original invoice or original invoice facsimile
retained in an alternative storage media showing the purchase. If
no original invoice was created, electronic invoicing shall be
accepted as reflected by a computerized facsimile when
accompanied by an original copy of the bill of lading or fuel
manifest that can be directly tied to the electronic invoice.

(4) The diesel fuel was any of the following:

(A) Used for purposes other than operating motor vehicles upon
the public highways of the state.

(B) Exported for use outside of this state. Diesel fuel carried
from this state in the fuel tank of a motor vehicle is not deemed to
be exported from this state unless the diesel fuel becomes subject
to tax as an import under the laws of the destination state.

(C) Used in any construction equipment that is exempt from
vehicle registration pursuant to the Vehicle Code, while operated
within the confines and limits of a construction project.

(D) Used in the operation of a motor vehicle on any highway
that is under the jurisdiction of the United States Department of
Agriculture and with respect to the use of the highway the claimant
pays, or contributes to, the cost of construction or maintenance
thereof pursuant to an agreement with, or permission of, the United
States Department of Agriculture.

(E) Used in any motor vehicle owned by any county, city and
county, city, district, or other political subdivision or public agency
when operated by it over any highway constructed and maintained
by the United States or any department or agency thereof within
a military reservation in this state. If the motor vehicle is operated
both over the highway and over a public highway outside the
military reservation in a continuous trip the tax shall not be
refunded as to that portion of the diesel fuel used to operate the
vehicle over the public highway outside the military reservation.

Nothing contained in this section shall be construed as a refund
of the tax for the use of diesel fuel in any motor vehicle operated
upon a public highway within a military reservation, which
highway is constructed or maintained by this state or any political
subdivision thereof.

As used in this section, “military reservation” includes any
establishment of the United States Government or any agency
thereof used by the Armed Forces of the United States for military,
air, or naval operations, including research projects.

(F) Sold by a supplier and which was sold to any consulate
officer or consulate employee under circumstances which would
have entitled the supplier to an exemption under paragraph (6) of
subdivision (a) of Section 60100 if the supplier had sold the diesel
fuel directly to the consulate officer or consulate employee.

(G) Lost in the ordinary course of handling, transportation, or
storage.

(H) (i) Sold by a person to the United States and its agencies
and instrumentalities under circumstances that would have entitled
that person to an exemption from the payment of diesel fuel tax
under Section 60100 had that person been the supplier of this diesel
fuel.

(ii) Sold by a supplier and which was sold by credit card to the
United States and its agencies and instrumentalities under
circumstances which would have entitled the supplier to an
exemption under Section 60100 if the supplier had sold the diesel
fuel directly to the United States and its agencies and
instrumentalities.

(I) Sold by a person to a train operator for use in a
diesel-powered train or for other off-highway use under
circumstances that would have entitled that person to an exemption
from the payment of diesel fuel tax under Section 60100 had that
person been the supplier of this diesel fuel.

(J) Removed from an approved terminal at the terminal rack,
but only to the extent that the supplier can show that the tax on the
same amount of diesel fuel has been paid more than one time by
the same supplier.

(b) Where tax is not imposed on dyed blended biodiesel fuel
upon removal from an approved terminal at the terminal rack, if
tax was previously imposed on the biodiesel fuel portion of the
dyed blended biodiesel fuel, then, pursuant to paragraph (1) of
subdivision (a), a claim for refund is allowed for the tax that was
paid on that biodiesel fuel, but only to the extent a supplier can
show that the tax on that biodiesel fuel has been paid by the same
supplier.

(c) Each claim for refund under this section shall contain the
following information with respect to all of the diesel fuel covered
by the claim:

(1) The name, address, telephone number, and permit number
of the person that sold the diesel fuel to the claimant and the date
of the purchase.

(2) A statement by the claimant that the diesel fuel covered by
the claim did not contain visible evidence of dye.

(3) A statement, which may appear on the invoice, original
invoice facsimile, or similar document, by the person that sold the
diesel fuel to the claimant that the diesel fuel sold did not contain
visible evidence of dye.

(4) The total amount of diesel fuel covered by the claim.

(5) The use made of the diesel fuel covered by the claim
described by reference to specific categories listed in paragraph
(4) of subdivision (a).

(6) If the diesel fuel covered by the claim was exported, a
statement that the claimant has the proof of exportation.

(d) Each claim for refund under this section shall be made on
a form prescribed by the board and shall be filed for a calendar
year. If, at the close of any of the first three quarters of the calendar
year, more than seven hundred fifty dollars ($750) is refundable
under this section with respect to diesel fuel used or exported
during that quarter or any prior quarter during the calendar year,
and for which no other claim has been filed, a claim may be filed
for the quarterly period. To facilitate the administration of this
section, the board may require the filing of claims for refund for
other than yearly periods.

begin delete SEC. 2. end delete
begin insert SEC. 5. end insert   

Section 60505.5 of the Revenue and Taxation Code is
amended to read:

60505.5.  

The claim for refund forms prescribed in subdivision
(d) of Section 60501 and subdivision (d) of Section 60502 may
include, but not be limited to, electronic media. The claim for
refund forms shall be authenticated in a form or pursuant to
methods as may be prescribed by the board.