Annual Report 2010-2011


Legislation

Property Taxes

Disaster Relief throughout the State

Allows persons whose homes were destroyed in various disasters to retain the homeowners' exemption while rebuilding.

Assembly Bill 1662, Chapter 447, Statutes of 2010; effective September 29, 2010

Assembly Bill 1690, Chapter 449, Statutes of 2010; effective September 29, 2010

Assembly Bill 2136, Chapter 461, Statutes of 2010; effective September 29, 2010

Assembly Bill 11 of the Sixth Extraordinary Session; Chapter 2, Statutes 2010; effective October 19, 2010

Disaster Relief—San Diego

Allows the San Diego County Board of Supervisors to enact an ordinance giving victims of the 2003 Cedar Fire more time to qualify for a base year value transfer.

Assembly Bill 157, Chapter 341, Statutes of 2010; effective September 27, 2010

Property Tax Revenue Allocation

Allocates property tax revenues from a particular state-assessed public utility owned power plant in San Bernardino County to only those entities in the tax rate area where the property is located.

Assembly Bill 308, Chapter 433, Statutes of 2010; effective September 29, 2010

Commercial Air Carriers

Extends provisions that detail the assessment methodology for certificated aircraft and provides streamlined property tax administrative procedures for property owned by commercial air carriers. Specifies aircraft values derived using the methodology only enjoy a rebuttable presumption of correctness and outlines permissible evidence to rebut the presumption. Also provides that the value of aircraft owned by its original owner cannot be greater than its original cost.

Assembly Bill 384, Chapter 228, Statutes of 2010; effective January 1, 2011

Possessory Interests

Excludes from the definition of a taxable possessory interest a project agreement between a nongovernmental entity and the Judicial Council to replace and operate the Long Beach Courthouse, stating that the interest lacks the element of independence.

Assembly Bill 1341, Chapter 442, Statutes of 2010; effective September 29, 2010

Disabled Veterans' Exemption

Gives disabled veterans awaiting a qualifying disability rating more time to file an exemption claim.

Assembly Bill 2314, Chapter 150, Statutes of 2010; effective January 1, 2011

Collection Cost Recovery Fee

Allows the BOE to impose and collect a collection cost recovery fee on any person that fails to pay amounts due and owing under the Private Railroad Car Tax and the Timber Yield Tax laws.

Senate Bill 858, Chapter 721, Statutes of 2010; effective October 19, 2010 but operative January 1, 2011

Possessory Interests

Expands the exclusion from the definition of a taxable possessory interest for military family housing projects to include housing projects for single, unaccompanied, or married service members without dependents.

Senate Bill 1250, Chapter 327, Statutes of 2010; effective January 1, 2011

California Assessors’ Association Property Tax Omnibus Bill

Supplemental Assessment and Annual Value Notices. Allows the assessor to send notices by email if the taxpayer requests.

Low Value Ordinance Exemption. Clarifies property eligible for exemption under a low value exemption ordinance must continue to fall under the dollar limit after annual inflation adjustments are made.

Record Retention and Destruction. Allows the assessor to dispose of certain documents obtained from a property owner once the documents are imaged.

Annual Value Publications. Allows annual value notice information to be posted on the assessor’s office Internet website rather than published in a newspaper advertisement.

Senate Bill 1493, Chapter 185, Statutes of 2010; effective January 1, 2011

Board-sponsored Property Tax Omnibus Bill

Leasehold Interests. Recasts change in ownership provisions to correct a renumbering error.

Parent-Child Exclusion. Adds the trustee of a trust to the list of persons who can sign a claim for the exclusion on behalf of eligible transferors and transferees.

Base Year Value Transfers. Allows transfers when the original property is held in a trust, provided the claimant is a trustor or present beneficiary of that trust.

Disaster Relief. Establishes general purpose provisions allowing disaster victims to keep the homeowners' exemption when the governor proclaims a state of emergency.

Intercounty Pipeline Rights-of-Way. Extends assessment provisions otherwise scheduled to sunset.

Supplemental and Escape Assessment Appeals. Specifies that a property owner's opinion of value in assessment appeals becomes controlling if not decided within two years.

Assessment Appeal Board Members and Hearing Officers. Repeals duplicative provisions prohibiting members and officers from acting as paid representatives in appeals filed by others.

Hearing Officers. Repeals duplicative provisions relating to conflict of interest safeguards.

Roll Corrections. Recasts statute of limitations provisions for clarity.

Refunds. Corrects a cross reference error related to refunds after an appeal.

Senate Bill 1494, Chapter 654, Statutes of 2010; effective January 1, 2011

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Sales and Use Taxes

Sales Tax on In-Home Support Service Providers

In part, this budget trailer bill imposes a sales tax on providers of in-home support services, and requires a seller, as defined, who is actively engaged in arranging for the retail sale of support services to apply for a seller’s permit, collect the sales tax from the provider, and pay the tax to the BOE. The sales tax provisions would only become operative if a certain request for approvals are granted by the federal Centers for Medicare and Medicaid Services.

Assembly Bill 1612, Chapter 725, Statutes of 2010; effective October 19, 2010, but operative date depends on federal government approval

Burden of Proof—Penalty

Adds a new provision to the Evidence Code to specify that the burden of proof is with the BOE in any assertion of penalties for intent to evade or fraud and requires a clear and convincing evidence standard for such assertions, as specified.

Assembly Bill 2195, Chapter 168, Statutes of 2010; effective January 1, 2011

Use of EDD Information

This BOE-sponsored bill authorizes the BOE to admit into evidence EDD’s confidential employment tax information in hearings and court proceedings to resolve disputes regarding the BOE's administration of a fee or tax law, the amount owed by a taxpayer or feepayer, or the amount to be refunded.

Assembly Bill 2433, Chapter 139, Statutes of 2010; effective January 1, 2011

Use Tax Reporting on Income Tax Forms

Reinstates the provisions that allow for the reporting of use tax liabilities on the state income tax returns filed with the FTB. This provision was set to expire December 31, 2009.

Senate Bill 858, Chapter 721, Statutes of 2010; effective October 19, 2010

Allows the use of a "look-up" table when eligible purchasers elect to report their use tax obligations on their state personal income or corporate or franchise income tax returns with respect to individual non-business purchases of less than $1,000.

Senate Bill 86, Chapter 14, Statutes of 2011; effective March 24, 2011

Collection Cost Recovery Fee

Allows the BOE to impose and collect a collection cost recovery fee on any person that fails to pay amounts due and owing.

Senate Bill 858, Chapter 721, Statutes of 2010; effective October 19, 2010

Interest Imposed on a Daily Basis

In cases where the BOE, meeting as a public body, finds under specified circumstances, that it would be inequitable to impose an entire month’s interest on a prepayment or payment made one day late, it imposes interest on a daily, rather than monthly basis.

Senate Bill 1028, Chapter 316, Statutes of 2010; effective January 1, 2011

Fuel Tax Swap Re-enactment

Reenacts the provisions related to the fuel tax swap of 2010 (ABx8 6 and SB 70), with the following adjustments to diesel fuel:

  • On July 1, 2011, in place of the additional 1.75% sales and use tax rate imposed by the 2010 fuel tax swap legislation on sales of diesel fuel, the bill instead imposes a rate of 1.87%. In subsequent years, the bill further changes this rate as follows:
  • On July 1, 2012, increases the rate to 2.17%.
  • On July 1, 2013, decreases the rate to 1.94%.
  • On July 1, 2014, and thereafter, reinstates the 1.75% rate.
  • Also on July 1, 2011, in place of the 2010 fuel tax swap's reduced excise tax rate on diesel fuel of 13.6 cents per gallon, this bill decreases that rate further to 13 cents per gallon.

Assembly Bill 105, Chapter 6, Statutes of 2011; effective March 24, 2011

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Special Taxes and Fees

Solid Waste Postclosure and Corrective Action Fee-Delay

Delays, from January 1, 2012 to July 1, 2012, the 12 cent per ton integrated waste management fee increase imposed upon each operator of a solid waste landfill whose owner elects to participate in the State Solid Waste Postclosure and Corrective Action Trust Fund.

Assembly Bill 1004, Chapter 417, Statutes of 2010; effective January 1, 2011, but operative July 1, 2012

Burden of Proof—Penalty

Adds a new provision to the Evidence Code to specify that the burden of proof is with the BOE in any assertion of penalties for intent to evade or fraud and requires a clear and convincing evidence standard for such assertions, as specified.

Assembly Bill 2195, Chapter 168, Statutes of 2010; effective January 1, 2011

Use of EDD Information

This BOE-sponsored bill authorizes the BOE to admit into evidence EDD’s confidential employment tax information in hearings and court proceedings to resolve disputes regarding the BOE’s administration of a fee or tax law, the amount owed by a taxpayer or feepayer, or the amount to be refunded.

Assembly Bill 2433, Chapter 139, Statutes of 2010; effective January 1, 2011

Cigarette and Tobacco Products

Makes changes to the Cigarette and Tobacco Products Licensing Act of 2003 (Licensing Act) and the Cigarette and Tobacco Products Tax Law to enhance enforcement of the Master Settlement Agreement and subsequent legislation (Model Statute and Tobacco Directory Law), as follows:

  • Imposes additional licensing requirements upon every manufacturer and every importer in order to be eligible to obtain and maintain a license under the Licensing Act;
  • Expands the BOE's inspection authority under the Licensing Act to any site where evidence of activities involve violations of the Tobacco Directory Law;
  • Prohibits for purposes of the Licensing Act an importer, distributor, wholesaler, distributor functioning as a wholesaler, or retailer from purchasing, obtaining, or otherwise acquiring any package of cigarettes to which a stamp is affixed in violation of the Tobacco Directory Law;
  • Allows a licensed retailer a 60-day period to possess, transport, and sell cigarettes removed from the Tobacco Directory before such products become subject to seizure and destruction;
  • Expands the actions the BOE may take for violations of the Tobacco Directory’s prohibitions from a distributor to any person for, in part, selling, acquiring and possessing cigarettes of a tobacco product manufacturer or brand family not included in the Tobacco Directory;
  • Requires a foreign tobacco product manufacturer to submit to the BOE certain Alcohol and Tobacco Tax and Trade Bureau forms; and
  • Adds to the Cigarette and Tobacco Products Tax Law additional non-face-to-face sales restrictions, including new delivery seller requirements.

Assembly Bill 2496, Chapter 265, Statutes of 2010; effective January 1, 2011

Cigarette and Tobacco Products

A BOE-sponsored bill which makes the following changes to the Cigarette and Tobacco Products Licensing Act:

  • Requires all cigarettes and tobacco products to be removed from clearly and easily visible retail stock during a period of suspension or after a license has been revoked;
  • Requires a suspended or revoked retailer licensee to post a notice of that suspension or revocation at each public entrance and each cash register, as provided; and
  • Prohibits licensees who purchased cigarettes or tobacco products for resale under their license from gifting such products during the period of suspension or after a license has been revoked.

Assembly Bill 2733, Chapter 607, Statutes of 2010; effective January 1, 2011

Collection Cost Recovery Fee

Allows the BOE to impose and collect a collection cost recovery fee on any person that fails to pay amounts due and owing under the Use Fuel Tax Law, Cigarette and Tobacco Products Tax Law, Alcoholic Beverage Tax Law, Energy Resources Surcharge Law, Emergency Telephone Users Surcharge Law, Hazardous Substances Tax Law, Integrated Waste Management Fee Law, Oil Spill Response, Prevention, and Administration Fees Law, Underground Storage Tank Maintenance Fee Law, Fee Collection Procedures Law, and the Diesel Fuel Tax Law.

Senate Bill 858, Chapter 721, Statutes of 2010; effective October 19, 2010, but operative January 1, 2011

Interest Imposed on a Daily Basis

In cases where the BOE, meeting as a public body, finds under specified circumstances, that it would be inequitable to impose an entire month’s interest on a prepayment or payment made one day late, it imposes interest on a daily, rather than monthly basis.

Senate Bill 1028, Chapter 316, Statutes of 2010, effective January 1, 2011

Fuel Tax Swap Re-enactment

Reenacts the provisions related to the fuel tax swap of 2010 (ABx8 6 and SB 70), with the following adjustments to diesel fuel:

  • On July 1, 2011, in place of the additional 1.75% sales and use tax rate imposed by the 2010 fuel tax swap legislation on sales of diesel fuel, the bill instead imposes a rate of 1.87%. In subsequent years, the bill further changes this rate as follows:
  • On July 1, 2012, increases the rate to 2.17%.
  • On July 1, 2013, decreases the rate to 1.94%.
  • On July 1, 2014, and thereafter, reinstates the 1.75% rate.
  • Also on July 1, 2011, in place of the 2010 fuel tax swap’s reduced excise tax rate on diesel fuel of 13.6 cents per gallon, this bill decreases that rate further to 13 cents per gallon.

Assembly Bill 105, Chapter 6, Statutes of 2011; effective March 24, 2011

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