Laws, Regulations & Annotations

Property Taxes Law Guide – Revision 2010
 

Revenue and Taxation Code

Property Taxation

Part 2. Assessment

Chapter 3. Assessment Generally

Article 4. Property Escaping Assessment

Section 533

533. Entry on roll. If an escape assessment is made as a result of an audit that discloses that property assessed to the party audited has been incorrectly assessed either for a past tax year for which taxes have been paid and a claim for refund is not barred by Section 5097 or for any tax year for which the taxes are unpaid, the tax refunds resulting from the incorrect assessments shall be an offset against proposed tax liabilities, including accumulated penalties and interest, resulting from escaped assessments for any tax year covered by the audit.

(b) If a tax refund, authorized under this section exceeds any proposed tax liabilities, including accumulated penalties and interest, the party audited shall be notified by the tax collector of the amount of the excess and of the fact that a claim for cancellation or refund may be filed with the county as provided by Section 5096 or 5096.7.

History.—Stats. 1967, p. 3339, in effect November 8, 1967, substituted present language from beginning of the section to ". . . shall be entered . . ." and added clause beginning ". . . pursuant to Sections . . ." at end. Stats. 1970, p. 1036, in effect November 23, 1970, added the second paragraph. Stats. 1978, Ch. 732, in effect January 1, 1979, deleted in the first sentence of the second paragraph the words "erroneously or illegally" and replaced them with "incorrectly". Also added the words "covered by the audit" to the end of that sentence. In the second sentence of the second paragraph deleted the word "the" and replaced it with "any"; and also deleted the words "for this year" and replaced them with "and the State Controller". Also the last sentence of the second paragraph was added. Stats. 1979, Ch. 518, in effect January 1, 1980, substantially revised second paragraph to allow offsets against any proposed tax liability resulting from audit rather than limiting offsets to proposed escapes. Stats. 1980, Ch. 411, in effect July 11, 1980, operative January 1, 1981, substituted "for the current assessment year as defined in Section 118" for "prepared or being prepared in the assessment year when it is so discovered" and "the property" for "it" before "escaped" in the first paragraph, and, deleted "4986" after "Section" and added "or 5096.7" after "5096" in the second sentence of the second paragraph. Stats. 1980, Ch. 1208, in effect January 1, 1981, added the third paragraph. Stats. 2003, Ch. 604 (SB 1059), in effect January 1, 2004, designated the former first paragraph as paragraph (1) of subdivision (a) and added paragraph (2); designated the former second paragraph as paragraph (1) of subdivision (b) and substituted "that" for "which" after "of an audit" in the first sentence therein, designated the former third paragraph as paragraph (2) thereof, designated the former fourth paragraph as paragraph (3) thereof and substituted "If these" for "If such" before "tax refunds exceed" in the first sentence and substituted "If" for "In the event that" before "the assessment caused" and substituted "the" for "such" after "the amount of" in the second sentence. Stats. 2004, Ch. 200 (SB 1880), in effect January 1, 2005, deleted former subdivision (a) which provided that "(1) Assessments made pursuant to Article 3 (commencing with Section 501) of this chapter or pursuant to this article shall be entered on the roll for the current assessment year as defined in Section 118, and, if this is not the roll for the assessment year in which the property escaped assessment, the entry shall be followed with "Escaped assessment for year pursuant to Sections of the Revenue and Taxation Code." (2) The assessor may make the entries described in paragraph (1) on either the hard copy of the roll or the electronic version of the roll, as determined by the assessor."; created new subdivision (a) with former paragraph (1) of former subdivision (b) and substituted "If an escape assessment is" for "If the assessments are" before "made as a result" in the first sentence therein and deleted former paragraph (2) which provided that "(2) Beginning with the 1981–82 fiscal year, assessment for the current and prior year shall be entered using a 100 percent assessment ratio and the tax rate for years prior to the 1981–82 fiscal year will be divided by four."; created new subdivision (b) with former paragraph (3) of former subdivision (b) and substituted "If a tax refund, authorized under this section exceeds" for "If these tax refunds exceed" before "any proposed tax" in the first sentence and deleted the former second sentence which provided that "If the assessment caused an excess payment of taxes and therefore resulted in an overpayment by the state for property tax relief as provided by Section 219, then subsequent subventions for property tax relief shall be reduced by the amount of the overpayment." therein.

Failure to make entry on roll.—Where the assessor treated city-owned water rights as having escaped assessment but did not make the entry on the roll as required by this section, the court did not decide the matter on that basis but, based upon the evidence, held that the method used by the assessor was incorrect and resulted in an excessive assessment of those rights. City of Los Angeles v. County of Inyo, 167 Cal.App.2d 736.