BILL NUMBER: SB 816 CHAPTERED
BILL TEXT
CHAPTER 622
FILED WITH SECRETARY OF STATE OCTOBER 11, 2009
APPROVED BY GOVERNOR OCTOBER 11, 2009
PASSED THE SENATE SEPTEMBER 10, 2009
PASSED THE ASSEMBLY SEPTEMBER 9, 2009
AMENDED IN ASSEMBLY AUGUST 31, 2009
AMENDED IN ASSEMBLY JUNE 26, 2009
AMENDED IN SENATE APRIL 28, 2009
INTRODUCED BY Senator Ducheny
FEBRUARY 27, 2009
An act to amend Sections 408, 480.1, 480.2, 482, and 483 of, and
to add Section 11935 to, the Revenue and Taxation Code, relating to
taxation.
LEGISLATIVE COUNSEL'S DIGEST
SB 816, Ducheny. Property taxation.
(1) Existing property tax law requires the assessor to disclose
certain appraisal information to specified state and local agencies.
This bill would expand the list of state and local agencies the
assessor is required to disclose certain appraisal information to
include the county recorder when conducting an investigation to
determine whether a documentary transfer tax is imposed.
(2) Existing law requires a corporation, partnership, limited
liability company, or other legal entity to file a change in
ownership statement within 45 days from the date of the change in
control or the change in ownership, or within 45 days from the date
of a written request by the State Board of Equalization. Existing law
requires a penalty to be imposed if the person or legal entity
required to file a change in ownership statement fails to do so
within 45 days from the date of a written request by the State Board
of Equalization. Existing law requires this penalty to be
automatically extinguished if the change in ownership statement is
filed no later than 60 days after the date on which the person or
legal entity is notified of the penalty. Existing law also authorizes
the State Board of Equalization to recommend to the county board of
supervisors that this penalty be abated, if the person or legal
entity establishes to the satisfaction of the State Board of
Equalization that the failure to file the change in ownership
statement within 45 days was due to reasonable cause and not due to
willful neglect and the person or legal entity has filed the change
in ownership statement and an application for abatement of the
penalty with the State Board of Equalization, as provided.
This bill would, instead, require a penalty to be imposed if the
person or legal entity required to file a change in ownership
statement fails to do so within 45 days from the earlier of the date
of the change in control or the change in ownership, or the date of a
written request by the State Board of Equalization. This bill would
also eliminate the requirement to extinguish this penalty and would,
instead, authorize the county board of supervisors to order that this
penalty be abated, if the person or legal entity establishes to the
satisfaction of the county board of supervisors that the failure to
file the change in ownership statement within 45 days was due to
reasonable cause and not due to willful neglect and the person or
legal entity has filed the change in ownership statement with the
State Board of Equalization and an application for abatement of the
penalty with the county board of supervisors, as provided.
(3) The Documentary Transfer Act authorizes the board of
supervisors of a county or city and county to impose a tax upon
specified instruments that transfer specified interests in real
property.
This bill would authorize any ordinance adopted by the board of
supervisors of a county or city and county for purposes of imposing a
documentary transfer tax to include an administrative appeal process
for resolution of disputes relating to the imposition of the tax.
This bill would prohibit the value of the property established for
purposes of determining the amount of documentary transfer tax due
from being binding on the determination of the value of that property
for property tax purposes.
(4) By changing the manner in which county officials process
property tax penalties, this bill would impose a state-mandated local
program.
The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
This bill would provide that no reimbursement is required by this
act for a specified reason.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 408 of the Revenue and Taxation Code is amended
to read:
408. (a) Except as otherwise provided in subdivisions (b), (c),
(d), and (e), any information and records in the assessor's office
that are not required by law to be kept or prepared by the assessor,
disabled veterans' exemption claims, and homeowners' exemption
claims, are not public documents and shall not be open to public
inspection. Property receiving the homeowners' exemption shall be
clearly identified on the assessment roll. The assessor shall
maintain records which shall be open to public inspection to identify
those claimants who have been granted the homeowners' exemption.
(b) The assessor may provide any appraisal data in his or her
possession to the assessor of any county.
The assessor shall disclose information, furnish abstracts, or
permit access to all records in his or her office to law enforcement
agencies, the county grand jury, the board of supervisors or their
duly authorized agents, employees, or representatives when conducting
an investigation of the assessor's office pursuant to Section 25303
of the Government Code, the county recorder when conducting an
investigation to determine whether a documentary transfer tax is
imposed, the Controller, employees of the Controller for property tax
postponement purposes, probate referees, employees of the Franchise
Tax Board for tax administration purposes only, staff appraisers of
the Department of Financial Institutions, the Department of
Transportation, the Department of General Services, the State Board
of Equalization, the State Lands Commission, the State Department of
Social Services, the Department of Child Support Services, the
Department of Water Resources, and other duly authorized legislative
or administrative bodies of the state pursuant to their authorization
to examine the records. Whenever the assessor discloses information,
furnishes abstracts, or permits access to records in his or her
office to staff appraisers of the Department of Financial
Institutions, the Department of Transportation, the Department of
General Services, the State Lands Commission, or the Department of
Water Resources pursuant to this section, the department shall
reimburse the assessor for any costs incurred as a result thereof.
(c) Upon the request of the tax collector, the assessor shall
disclose and provide to the tax collector information used in the
preparation of that portion of the unsecured roll for which the taxes
thereon are delinquent. The tax collector shall certify to the
assessor that he or she needs the information requested for the
enforcement of the tax lien in collecting those delinquent taxes.
Information requested by the tax collector may include social
security numbers, and the assessor shall recover from the tax
collector his or her actual and reasonable costs for providing the
information. The tax collector shall add the costs described in the
preceding sentence to the assessee's delinquent tax lien and collect
those costs subject to subdivision (e) of Section 2922.
(d) The assessor shall, upon the request of an assessee or his or
her designated representative, permit the assessee or representative
to inspect or copy any market data in the assessor's possession. For
purposes of this subdivision, "market data" means any information in
the assessor's possession, whether or not required to be prepared or
kept by him or her, relating to the sale of any property comparable
to the property of the assessee, if the assessor bases his or her
assessment of the assessee's property, in whole or in part, on that
comparable sale or sales. The assessor shall provide the names of the
seller and buyer of each property on which the comparison is based,
the location of that property, the date of the sale, and the
consideration paid for the property, whether paid in money or
otherwise. However, for purposes of providing market data, the
assessor may not display any document relating to the business
affairs or property of another.
(e) (1) With respect to information, documents, and records, other
than market data as defined in subdivision (d), the assessor shall,
upon request of an assessee of property, or his or her designated
representative, permit the assessee or representative to inspect or
copy all information, documents, and records, including auditors'
narrations and workpapers, whether or not required to be kept or
prepared by the assessor, relating to the appraisal and the
assessment of the assessee's property, and any penalties and interest
thereon.
(2) After enrolling an assessment, the assessor shall respond to a
written request for information supporting the assessment,
including, but not limited to, any appraisal and other data requested
by the assessee.
(3) Except as provided in Section 408.1, an assessee, or his or
her designated representative, may not be permitted to inspect or
copy information and records that also relate to the property or
business affairs of another, unless that disclosure is ordered by a
competent court in a proceeding initiated by a taxpayer seeking to
challenge the legality of the assessment of his or her property.
(f) (1) Permission for the inspection or copying requested
pursuant to subdivision (d) or (e) shall be granted as soon as
reasonably possible to the assessee or his or her designated
representative.
(2) If the assessee, or his or her designated representative,
requests the assessor to make copies of any of the requested records,
the assessee shall reimburse the assessor for the reasonable costs
incurred in reproducing and providing the copies.
(3) If the assessor fails to permit the inspection or copying of
materials or information as requested pursuant to subdivision (d) or
(e) and the assessor introduces any requested materials or
information at any assessment appeals board hearing, the assessee or
his or her representative may request and shall be granted a
continuance for a reasonable period of time. The continuance shall
extend the two-year period specified in subdivision (c) of Section
1604 for a period of time equal to the period of continuance.
SEC. 2. Section 480.1 of the Revenue and Taxation Code is amended
to read:
480.1. (a) Whenever there is a change in control of any
corporation, partnership, limited liability company, or other legal
entity, as defined in subdivision (c) of Section 64, a signed change
in ownership statement as provided for in subdivision (b), shall be
filed by the person or legal entity acquiring ownership control of
the corporation, partnership, limited liability company, or other
legal entity with the board at its office in Sacramento within 45
days from the date of the change in control of the corporation,
partnership, limited liability company, or other legal entity. The
statement shall list all counties in which the corporation,
partnership, limited liability company, or legal entity owns real
property.
(b) The change in ownership statement as required pursuant to
subdivision (a), shall be declared to be true under penalty of
perjury and shall give such information relative to the ownership
control acquisition transaction as the board shall prescribe after
consultation with the California Assessors' Association. The
information shall include, but not be limited to, a description of
the property owned by the corporation, partnership, limited liability
company, or other legal entity, the parties to the transaction, and
the date of the ownership control acquisition. The change in
ownership statement shall not include any question which is not
germane to the assessment function. The statement shall contain a
notice that is printed, with the title at least 12-point boldface
type and the body in at least 8-point boldface type, in the following
form:
"Important Notice"
"The law requires any person or legal entity acquiring ownership
control in any corporation, partnership, limited liability company,
or other legal entity owning real property in California subject to
local property taxation to complete and file a change in ownership
statement with the State Board of Equalization at its office in
Sacramento. The change in ownership statement must be filed within 45
days from the date of the change in control of a corporation,
partnership, limited liability company, or other legal entity. The
law further requires that a change in ownership statement be
completed and filed whenever a written request is made therefor by
the State Board of Equalization, regardless of whether a change in
control of the legal entity has occurred. The failure to file a
change in ownership statement within 45 days from the earlier of the
date of the change in control of the corporation, partnership,
limited liability company, or other legal entity, or the date of a
written request by the State Board of Equalization, results in a
penalty of 10 percent of the taxes applicable to the new base year
value reflecting the change in control of the real property owned by
the corporation, partnership, limited liability company, or legal
entity (or 10 percent of the current year's taxes on that property if
no change in control occurred). This penalty will be added to the
assessment roll and shall be collected like any other delinquent
property taxes, and be subject to the same penalties for nonpayment."
(c) In the case of a corporation, the change in ownership
statement shall be signed either by an officer of the corporation or
an employee or agent who has been designated in writing by the board
of directors to sign such statements on behalf of the corporation. In
the case of a partnership, limited liability company, or other legal
entity, the statement shall be signed by an officer, partner,
manager, or an employee or agent who has been designated in writing
by the partnership, limited liability company, or legal entity.
(d) No person or entity acting for or on behalf of the parties to
a transfer of real property shall incur liability for the
consequences of assistance rendered to the transferee in preparation
of any change in ownership statement, and no action may be brought or
maintained against any person or entity as a result of that
assistance.
Nothing in this section shall create a duty, either directly or by
implication, that such assistance be rendered by any person or
entity acting for or on behalf of parties to a transfer of real
property.
(e) The board or assessors may inspect any and all records and
documents of a corporation, partnership, limited liability company,
or legal entity to ascertain whether a change in control as defined
in subdivision (c) of Section 64 has occurred. The corporation,
partnership, limited liability company, or legal entity shall upon
request, make those documents available to the board during normal
business hours.
SEC. 3. Section 480.2 of the Revenue and Taxation Code is amended
to read:
480.2. (a) Whenever there is a change in ownership of any
corporation, partnership, limited liability company, or other legal
entity, as defined in subdivision (d) of Section 64, a signed change
in ownership statement as provided in subdivision (b) shall be filed
by the corporation, partnership, limited liability company, or other
legal entity with the board at its office in Sacramento within 45
days from the date of the change in ownership of the corporation,
partnership, limited liability company, or other legal entity. The
statement shall list all counties in which the corporation,
partnership, limited liability company, or legal entity owns real
property.
(b) The change in ownership statement required pursuant to
subdivision (a) shall be declared to be true and under penalty of
perjury and shall give such information relative to the ownership
interest acquisition transaction as the board shall prescribe after
consultation with the California Assessors' Association. The
information shall include, but not be limited to, a description of
the property owned by the corporation, partnership, limited liability
company, or other legal entity, the parties to the transaction, the
date of the ownership interest acquisition, and a listing of the
"original coowners" of the corporation, partnership, limited
liability company, or other legal entity prior to the transaction.
The change in ownership statement shall not include any question
which is not germane to the assessment function. The statement shall
contain a notice that is printed, with the title in at least 12-point
boldface type and the body in at least 8-point boldface type, in the
following form:
"Important Notice"
"The law requires any corporation, partnership, limited liability
company, or other legal entity owning real property in California
subject to local property taxation and transferring shares or other
ownership interest in such legal entity which constitute a change in
ownership pursuant to subdivision (d) of Section 64 of the Revenue
and Taxation Code to complete and file a change in ownership
statement with the State Board of Equalization at its office in
Sacramento. The change in ownership statement must be filed within 45
days from the date that shares or other ownership interests
representing cumulatively more than 50 percent of the total control
or ownership interests in the entity are transferred by any of the
original coowners in one or more transactions. The law further
requires that a change in ownership statement be completed and filed
whenever a written request is made therefor by the State Board of
Equalization, regardless of whether a change in ownership of the
legal entity has occurred. The failure to file a change in ownership
statement within 45 days from the earlier of the date of the change
in ownership of the corporation, partnership, limited liability
company, or other legal entity, or the date of a written request by
the Board of Equalization, results in a penalty of 10 percent of the
taxes applicable to the new base year value reflecting the change in
ownership of the real property owned by the corporation, partnership,
limited liability company, or legal entity (or 10 percent of the
current year's taxes on that real property if no change in ownership
occurred). This penalty will be added to the assessment roll and
shall be collected like any other delinquent property taxes, and be
subject to the same penalties for nonpayment."
(c) In the case of a corporation, the change in ownership
statement shall be signed either by an officer of the corporation or
an employee or agent who has been designated in writing by the board
of directors to sign such statements on behalf of the corporation. In
the case of a partnership, limited liability company, or other legal
entity, the statement shall be signed by an officer, partner,
manager, or an employee or agent who has been designated in writing
by the partnership, limited liability company, or legal entity.
(d) No person or entity acting for or on behalf of the parties to
a transfer of real property shall incur liability for the
consequences of assistance rendered to the transferee in preparation
of any change in ownership statement, and no action may be brought or
maintained against any person or entity as a result of that
assistance.
Nothing in this section shall create a duty, either directly or by
implication, that such assistance be rendered by any person or
entity acting for or on behalf of parties to a transfer of real
property.
(e) The board or assessors may inspect any and all records and
documents of a corporation, partnership, limited liability company,
or legal entity to ascertain whether a change in ownership as defined
in subdivision (d) of Section 64 has occurred. The corporation,
partnership, limited liability company, or legal entity shall upon
request, make those documents available to the board during normal
business hours.
SEC. 4. Section 482 of the Revenue and Taxation Code is amended to
read:
482. (a) If a person or legal entity required to file a statement
described in Section 480 fails to do so within 45 days from the date
of a written request by the assessor, a penalty of either: (1) one
hundred dollars ($100), or (2) 10 percent of the taxes applicable to
the new base year value reflecting the change in ownership of the
real property or manufactured home, whichever is greater, but not to
exceed two thousand five hundred dollars ($2,500) if the failure to
file was not willful, shall, except as otherwise provided in this
section, be added to the assessment made on the roll. The penalty
shall apply for failure to file a complete change in ownership
statement notwithstanding the fact that the assessor determines that
no change in ownership has occurred as defined in Chapter 2
(commencing with Section 60) of Part 0.5. The penalty may also be
applied if after a request the transferee files an incomplete
statement and does not supply the missing information upon a second
request.
(b) If a person or legal entity required to file a statement
described in Section 480.1 or 480.2 fails to do so within 45 days
from the earlier of (1) the date of the change in control or the
change in ownership of the corporation, partnership, limited
liability company, or other legal entity, or (2) the date of a
written request by the State Board of Equalization, a penalty of 10
percent of the taxes applicable to the new base year value reflecting
the change in control or change in ownership of the real property
owned by the corporation, partnership, or legal entity, or 10 percent
of the current year's taxes on that property if no change in control
or change in ownership occurred, shall be added to the assessment
made on the roll. The penalty shall apply for failure to file a
complete statement notwithstanding the fact that the board determines
that no change in control or change in ownership has occurred as
defined in subdivision (c) or (d) of Section 64. The penalty may also
be applied if after a request the person or legal entity files an
incomplete statement and does not supply the missing information upon
a second request. That penalty shall be in lieu of the penalty
provisions of subdivision (a).
(c) The penalty for failure to file a timely statement pursuant to
Sections 480, 480.1, and 480.2 for any one transfer may be imposed
only one time, even though the assessor may initiate a request as
often as he or she deems necessary.
(d) The penalty shall be added to the roll in the same manner as a
special assessment and treated, collected, and subject to the same
penalties for the delinquency as all other taxes on the roll in which
it is entered.
(1) When the transfer to be reported under this section is of a
portion of a property or parcel appearing on the roll during the
fiscal year in which the 45-day period expires, the current year's
taxes shall be prorated so the penalty will be computed on the
proportion of property which has transferred.
(2) Any penalty added to the roll pursuant to this section between
January 1 and June 30 may be entered either on the unsecured roll or
the roll being prepared. After January 1, the penalty may be added
to the current roll only with the approval of the tax collector.
(3) If the property is transferred or conveyed to a bona fide
purchaser for value or becomes subject to a lien of a bona fide
encumbrancer for value after the transfer of ownership resulting in
the imposition of the penalty and before the enrollment of the
penalty, the penalty shall be entered on the unsecured roll in the
name of the transferee whose failure to file the change in ownership
statement resulted in the imposition of the penalty.
(e) When a penalty imposed pursuant to this section is entered on
the unsecured roll, the tax collector may immediately file a
certificate authorized by Section 2191.3.
(f) Notice of any penalty added to either the secured or unsecured
roll pursuant to this section shall be mailed by the assessor to the
transferee at his or her address contained in any recorded
instrument or document evidencing a transfer of an interest in real
property or manufactured home or at any address reasonably known to
the assessor.
SEC. 5. Section 483 of the Revenue and Taxation Code is amended to
read:
483. (a) If the assessee establishes to the satisfaction of the
county board of supervisors that the failure to file the change in
ownership statement within the time required by subdivision (a) of
Section 482 was due to reasonable cause and not due to willful
neglect, and has filed the statement with the assessor, the county
board of supervisors may order the penalty abated, provided the
assessee has filed with the county board of supervisors a written
application for abatement of the penalty no later than 60 days after
the date on which the assessee was notified of the penalty.
If the penalty is abated it shall be canceled or refunded in the
same manner as an amount of tax erroneously charged or collected.
(b) The provisions of subdivision (a) shall not apply in any
county in which the board of supervisors adopts a resolution to that
effect. In that county the penalty provided for in subdivision (a) of
Section 482 shall be abated if the assessee files the change of
ownership statement with the assessor no later than 60 days after the
date on which the assessee was notified of the penalty.
If the penalty is abated it shall be canceled or refunded in the
same manner as an amount of tax erroneously charged or collected.
(c) If a person or legal entity establishes to the satisfaction of
the county board of supervisors that the failure to file the change
in ownership statement within the time required by subdivision (b) of
Section 482 was due to reasonable cause and not due to willful
neglect, and has filed the statement with the State Board of
Equalization, the county board of supervisors may order the penalty
be abated, provided the person or legal entity has filed with the
county board of supervisors a written application for abatement of
the penalty no later than 60 days after the date on which the person
or legal entity was notified of the penalty by the assessor.
If the penalty is abated by the county board of supervisors, it
shall be canceled or refunded in the same manner as an amount of tax
erroneously charged or collected.
SEC. 6. Section 11935 is added to the Revenue and Taxation Code,
to read:
11935. (a) Any ordinance adopted pursuant to this part may
include an administrative appeal process for resolution of disputes
related to the documentary transfer tax.
(b) Whether the amount of documentary transfer tax is determined
by an administrative appeal process or established by a court of law,
the value of the property established for purposes of determining
the amount of documentary transfer tax due shall not be binding on
the determination of the value of that property for property tax
purposes by the county assessor, by an assessment appeals board, or
by a court of law reviewing property tax values established by an
assessment appeals board.
SEC. 7. No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because a
local agency or school district has the authority to levy service
charges, fees, or assessments sufficient to pay for the program or
level of service mandated by this act, within the meaning of Section
17556 of the Government Code.