Laws, Regulations & Annotations

Property Taxes Law Guide – Revision 2011
 

Revenue and Taxation Code

Other Taxes

Part 6. Private Railroad Car Tax

CHAPTER 2. Assessments


Chapter 2. Assessments

Article 1. General Provisions

11251. Assessment of cars. Private railroad cars operated upon railroads into, out of, or through this state shall be assessed and taxed by the board as prescribed in this part.

History.—Stats. 1974, Ch. 54, p. 117, in effect January 1, 1975, added "at 25 percent of their full cash value" after "board". Stats. 1978, Ch. 1209, in effect January 1, 1979, added "railroad" after "Private". Stats. 1978, Ch. 1207, in effect January 1, 1979, operative January 1, 1981, deleted "railroad" after "Private" and "25 percent of" before "their". Stats. 1982, Ch. 939, in effect January 1, 1983, operative January 1, 1984, added "railroad" after "private" and deleted "cash" after "full." Stats. 1995, Ch. 220, in effect July 31, 1995, added "and taxed" after "assessed" and deleted "at their full value, and taxed" after "by the board".

Constitutionality.—The law is not invalid under either the Federal or State Constitution as lacking equality and uniformity by reason of the classification of cars belonging to private owners and those owned by railroads, the former being taxed for state purposes at the average rate of taxation in the State and the latter being allocated to local taxing districts and taxed at the rates applicable in those districts. People v. Keith Railway Equipment Co., 70 Cal.App.2d 339.

11252. Tax in lieu of other taxes. The tax imposed in this part is in lieu of all other state, county, municipal, or district taxes, according to value, upon private railroad cars and their appurtenances.

History.—Stats. 1978, Ch. 1209, in effect January 1, 1979, added "railroad" after "private". Stats. 1995, Ch. 220, in effect July 31, 1995, substituted "their appurtenances." for "property incidental to their operations, the value of which property is included in the assessment of the cars." after "and".

11253. Installment payment agreements. (a) The board may, in its discretion, enter into a written installment payment agreement with a person for the payment of any taxes due, together with interest thereon and any applicable penalties, in installments over an agreed period. With mutual consent, the board and the taxpayer may alter or modify the agreement.

(b) Upon failure of a person to fully comply with the terms of an installment payment agreement with the board, the board may terminate the agreement by mailing a notice of termination to the person. The notice shall include an explanation of the basis for the termination and inform the person of his or her right to request an administrative review of the termination. Fifteen days after the mailing of the notice, the installment payment agreement shall be void, and the total amount of the tax, interest, and penalties due shall be immediately payable.

(c) The board shall establish procedures for an administrative review for persons requesting that review whose installment payment agreements are terminated under subdivision (b). The collection of taxes, interest, and penalties that are the subject of the terminated installment payment agreement may not be stayed during this administrative review process.

(d) The notice requirement in subdivision (b) shall not apply to any case where the board finds collection of the tax to be in jeopardy.

Except in the case of fraud, if an installment payment agreement is entered into within 45 days from the due date of the tax bill, and the person complies with the terms of the installment payment agreement, the board shall relieve the penalty imposed pursuant to Section 11341.

History.—Added by Stats. 1999, Ch. 929 (AB 1638), in effect January 1, 2000. Stats. 2000, Ch. 1052 (AB 2898), in effect January 1, 2001, added "The notice requirement in" before "subdivision (b)" in the first sentence of the first paragraph and added the second paragraph of subdivision (d).

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11253.5. Installment payments; annual statement. The board, beginning no later than January 1, 2001, shall provide each taxpayer who has an installment payment agreement in effect under Section 11253 an annual statement setting forth the initial balance at the beginning of the year, the payments made during the year, and the remaining balance as of the end of the year.

History.—Added by Stats. 2000, Ch. 1052 (AB 2898), in effect January 1, 2001.

11254. Return of levied property. Except in any case where the board finds collection of the tax to be in jeopardy, if any property has been levied upon, the property or the proceeds from the sale of the property shall be returned to the taxpayer if the board determines any one of the following:

(a) The levy on the property was not in accordance with the law.

(b) The taxpayer has entered into and is in compliance with an installment payment agreement pursuant to Section 11253 to satisfy the tax liability for which the levy was imposed, unless that or another agreement allows for the levy.

(c) The return of the property will facilitate the collection of the tax liability or will be in the best interest of the state and the taxpayer.

History.—Added by Stats. 1999, Ch. 929 (AB 1638), in effect January 1, 2000.

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Article 2. Reports

11271. Annual report; time of filing. (a) Every person whose private railroad cars are operated upon the railroads in this state at any time during a calendar year shall file with the board on or before April 30 a report under oath setting forth specifically the information prescribed by the board to enable it to make the assessment required in this part.

(b) In the case of a corporate owner of property, the property statement shall be signed either by an officer of the corporation or by an employee or agent who has been designated in writing by the board of directors to sign such report on behalf of the corporation.

History.—Stats. 1945, p. 1002, in effect September 15, 1945, substituted "the time fixed by the board" for "April 15 of the following calendar year." Stats. 1974, Ch. 54, p. 117, in effect January 1, 1975, added the subdivision letters, substituted "April 30" for "the time fixed by the board" in subdivision (a), and added subdivision (b). Stats. 1978, Ch. 1209, in effect January 1, 1979, added "railroad" between "private" and "cars".

11272. Extension of time for filing report. The board for good cause may extend for not to exceed 30 days the time for making a report, provided a written request is filed with the board prior to the period for which the extension may be granted.

History.—Stats. 1947, p. 1701, in effect September 19, 1947, added last sentence. Stats. 1974, Ch. 54, p. 118, in effect January 1, 1975, combined the former first and last sentences, adding "," after "report" at the end of the former first sentence; and deleting "The extension may be granted at any time" before "provided", deleting "therefor" after "request", and deleting "within or" before "prior" in the former last sentence; and added "written" before "request".

11273. Untimely report; penal assessment. If any person required to file a report fails to file it on or before April 30 or at the time as extended by the board, a penalty of 10 percent of the assessed value shall be added to the assessment.

If the assessee establishes to the satisfaction of the board that the failure to file the property statement timely was due to a reasonable cause and occurred notwithstanding the exercise of ordinary care and the absence of willful neglect, the board shall order the penalty abated, provided the assessee has filed with the board written application for abatement of the penalty within the time prescribed by law for filing a petition for reassessment.

History.—Added by Stats. 1974, Ch. 54, p. 118, in effect January 1, 1975. Stats. 1981, Ch. 1132, in effect January 1, 1982, added the second paragraph. Stats. 2001, Ch. 407 (SB 1181), in effect January 1, 2002, deleted "declaration of intent to" after "filing a" in the first sentence of the second paragraph. Stats. 2002, Ch. 664 (AB 3034), in effect January 1, 2003, substituted "at the" for "such" after "April 30 or" in the first sentence of the first paragraph.

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Article 3. Valuations

11291. Property included in value of cars. The value of private railroad cars shall not include the car owner's tools, shop equipment, materials, supplies, or other like items of personal property customarily kept or maintained at fixed locations for use in repairing, improving, servicing, or operating the cars.

History.—Stats. 1978, Ch. 1209, in effect January 1, 1979, added "railroad" between "private" and "cars". Stats. 1995, Ch. 220, in effect July 31, 1995, deleted "assessed under this part shall include all materials and supplies held, stored, or used in this State by the person owning the private railroad cars, or the receiver or trustee in control thereof, for the purpose of repairing, improving, servicing, or operating the cars. The value of the cars assessed" after "railroad cars", added "the car owner's" after "not include", and added "materials, supplies," after "shop equipment," in the combined first sentence.

Valuation Methods.—The Board properly exercised its discretion in selecting the replacement cost method to assess railroad flatcars, rather than the income capitalization method, where the taxpayer, a company formed by railroad companies to lease container-freight flatcars to carriers, charged rates that were far below the level required for profitable operation and were intended to cover costs only, and thus would not provide the reliable income data necessary to the income method. Because the Board was obligated to tax fairly and uniformly at fair market value, it had discretion to choose the method of valuation. Trailer Train Company v. State Board of Equalization, 180 Cal.App.3d 565.

Pending state court actions.—Where railroad car companies' action under Railroad Revitalization and Regulatory Reform Act challenging Board's market valuation of their property for state tax assessment purposes presented issues of valuation methodology that were functionally identical to those in pending state court actions, federal district court would abstain from further proceedings until state actions produced final judgment regarding that calculation; proceedings could in fact in law be related for abstention purposes even though they involved different tax year or different taxpayer. ACF Industries v. State Board of Equalization, 653 F.Supp. 390.

11292. Depreciable life. In making the assessment, the board shall value the cars by class based on the owner's acquisition cost, less depreciation. The depreciation shall be computed for these enumerated Association of American Railroad's, or successor organization's, car type groups on a straight-line basis with the indicated depreciable life schedules with a maximum of 80 percent depreciation allowed.

(a) Stack cars (alpha S): 22 years minus the age at acquisition.

(b) Lightweight, low profile intermodal cars (alpha Q): 22 years minus the age at acquisition.

(c) Flat cars (alpha F): 22 years minus the age at acquisition.

(d) Conventional intermodal cars (alpha P): 22 years minus the age at acquisition.

(e) Vehicular flat cars (alpha V): 22 years minus the age at acquisition.

(f) All other cars (all other alphas): 25 years minus the age at acquisition.

(g) Betterments: the remaining depreciable life of the car to which the betterment is applied.

Acquisition cost is defined as the expenditures required to be capitalized by generally accepted accounting principles.

History.—Added by Stats. 1995, Ch. 220, in effect July 31, 1995.

11293. Amount of cars. In making an assessment the board shall determine the average number of each class of private railroad cars physically present in the state in the calendar year immediately preceding the fiscal year in which the tax is imposed upon the basis of car days. The board shall multiply the average number so determined by the value of a car of that class as determined under Section 11292 and use the product for the assessment of the cars.

History.—Stats. 1974, Ch. 54, p. 118, in effect January 1, 1975, substituted "an assessment" for "assessments", substituted "number of each class" for "amount", substituted "physically present" for "habitually", added "in the year immediately preceding the year in which the tax is imposed" after "in the state", substituted "car days" for "track mileage", and substituted the balance of the first sentence after "car days" for "or such other factors or combination thereof as may be reasonably calculated to establish the situs of such private cars"; and substituted the last sentence for the former last sentence regarding the amount to be used as the basis for assessment. Stats. 1978, Ch. 1209, in effect January 1, 1979, added "railroad" between "private" and "cars". Stats. 1995, Ch. 220, in effect July 31, 1995, added "calendar" after "state in the", added "fiscal" after "preceding the", deleted "car mileage," after "the basis of", and deleted ", or such other data as would tend to establish this average" after "car days" in the first sentence; deleted "full cash" after "determined by the", substituted "of" for "for" after "value", added "as determined . . . 11292" after "that class", deleted "as the basis" after "product" and substituted "cars" for "property" after "assessment of the" in the second sentence.

11294. Amount of cars; exclusion. In determining the averages required in Section 11293, the board shall exclude from the California factor car mileage, car days or such other data which occurs while cars are not qualified for revenue service and are in a repair facility in this state requiring and undergoing or awaiting remodeling, overhaul, renovation, conversion or repair which necessitates total labor in excess of 10 man-hours.

Car days excluded pursuant to this section shall not exceed 90 days per car unless the claimant provides substantiation of the necessity for the additional days in such form as prescribed by the board.

History.—Added by Stats. 1974, Ch. 1236, p. 2682, in effect January 1, 1975, operative only for calendar years 1975 through 1979, inclusive. Stats. 1977, Ch. 388, in effect January 1, 1978, substituted second paragraph for "This section shall remain in effect and be operative only for calendar years 1975 through 1979, inclusive. On January 1, 1980, this section is repealed."

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Article 4. Estimated and Escaped Assessments

11311. Assessment if no report made. If any person neglects or refuses to make a report as required by Article 2 of this chapter, the board shall make an estimate of the matters required to enable the board to make the assessment. The estimate shall be made for the year in respect to which the person failed to make the report and shall be based upon any information available to the board.

11312. Notice of estimated assessment. After making its estimate the board shall give to the person written notice of the estimate and its assessment. The notice shall be served personally or by mail; if by mail, service shall be made pursuant to Section 1013 of the Code of Civil Procedure and shall be addressed to the person at his address as it appears in the records of the board.

11314. Unsatisfactory report. If the board is dissatisfied with the report filed by any person, it may compute and determine the assessment upon the basis of any information available to it.

11315. Assessment of escaped property. If any property required to be assessed for any year wholly escapes assessment or escapes assessment in part due to the board's underassessing the property because of failure of the taxpayer to report the property accurately, the board shall immediately assess or reassess the property upon the discovery of the escape.

History.—Stats. 1945, p. 1002, in effect September 15, 1945, deleted "immediately" before "assess" and substituted "first" for "third." Stats. 1974, Ch. 54, p. 118, in effect January 1, 1975, substituted "for any year wholly escapes assessment or escapes assessment in part due to the board's underassessing the property because of failure of the taxpayer to report the property accurately" for "escapes assessment for any year", added "immediately" after "shall", and substituted the balance of the first sentence after "assess" for "the property when it is discovered"; and deleted the former last sentence regarding the inclusion of such an assessment among assessments to be completed.

Construction.—Escape assessments were properly levied under this section against a lessor of railroad flatcars after the Board determined that the lessor's claim of functional obsolescence pertaining to those cars was unjustified. The section does not require reappraisal of a taxpayer's entire fleet of railcars, only an appraisal of the portion of the fleet that escaped assessment. Trailer Train Company v. State Board of Equalization, 180 Cal.App.3d 565.

11316. Negligence or fraud; penal assessment. If the board makes an assessment pursuant to Section 11311, 11314, or 11315 due to the negligence of the taxpayer, a penalty of 10 percent of the value of the estimated or escape assessment shall be added to the assessment. If the estimated or escape assessment is due to a fraudulent or willful attempt to evade the tax, a penalty of 25 percent of the value of the estimated or escape assessment shall be added to the assessment. A willful failure to file a report as required by Article 2 (commencing with Section 11271) of this chapter shall be deemed to be a willful attempt to evade the tax.

If the assessee establishes to the satisfaction of the board that the failure to file an accurate property statement was due to reasonable cause and occurred notwithstanding the exercise of ordinary care and the absence of willful neglect, the board shall order the penalty abated, provided the assessee has filed with the board written application for abatement of the penalty within the time prescribed by law for filing a petition for reassessment.

History.—Added by Stats. 1974, Ch. 54, p. 118, in effect January 1, 1975. Stats. 1978, Ch. 1209, in effect January 1, 1979, reworded the existing language of the section pertaining to penalty in Sections 11311, 11314 or 11315 and added the third sentence in the first paragraph. Stats. 1981, Ch. 1132, in effect January 1, 1982, added the second paragraph. Stats. 2005, Ch. 264 (SB 555), in effect January 1, 2006, deleted "declaration of intent to" after "for filing a" in the first sentence of the second paragraph.

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11317. Entry on current record. (a) An escape assessment shall be entered on the current private railroad car tax record, and if this is not the record for the year in which the property escaped assessment, the entry shall be followed with "escape assessment for year 20 ". The property shall be assessed at the same value and taxed at the same rate as it would have been assessed and taxed had it not escaped.

(b) If the assessments are made as a result of an audit that discloses that property assessed to the party audited has been incorrectly assessed for a past tax year for which taxes have been paid and a claim for refund is not barred by Section 11553, the tax refunds, including applicable interest under Section 11555, 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. If the refunds exceed any proposed tax liabilities, including penalties and interest, the excess shall be processed in accordance with Section 11551.

(c) Beginning with the 1981–82 fiscal year, assessments for the current year and escape assessments for prior years shall be entered using a 100-
percent assessment ratio and the tax rates for years prior to the 1981–82 fiscal year shall be divided by four.

History.—Added by Stats. 1974, Ch. 54, p. 119, in effect January 1, 1975. Stats. 1978, Ch. 1209, in effect January 1, 1979, added "railroad" after "private". Stats. 1982, Ch. 1465, in effect January 1, 1983, added the second and third paragraphs. Stats. 2006, Ch. 538 (SB 1852), in effect January 1, 2007, designated the former first paragraph as subdivision (a) and substituted "20 " for "19 " after "assessment for year" in the first sentence therein, designated the former second paragraph as subdivision (b) and substituted "that" for "which" after "of an audit" in the first sentence therein, and designated the third paragraph as subdivision (c).

11318. Notice of escaped assessment. Except in the case of a taxpayer fraudulently or willfully attempting to evade the tax, any escape assessment shall be made and the taxpayer notified thereof within four years after August 1 of the year in which the property escaped assessment. No escape assessment shall be effective until the assessee has been notified personally or by United States mail at his address as contained in the official records of the board. Receipt by the assessee of a tax bill based on such assessment shall suffice as such notice.

History.—Added by Stats. 1974, Ch. 54, p. 119, in effect January 1, 1975.

Construction.—This section allows the Board four years in which to levy escape assessments, whether due to underreporting of value by the taxpayer or to a changed Board opinion of valuation, and Article XIII, Section 1 of the Constitution, which requires uniform assessment, compels escape assessments if property is not being taxed at its full value. Trailer Train Company v. State Board of Equalization, 180 Cal.App.3d 565.

11319. Interest. If any assessment made pursuant to this article results in a tax that is paid after December 10 of the year to which the assessment relates, the tax shall bear interest at the adjusted annual rate established pursuant to Section 19521 from December 10 of the year in which the assessment should have been made to the date the assessment is added to the board roll; provided, however, that no addition shall be made whenever the escape was due to an error, other than an erroneous opinion of value, on the part of the board.

History.—Added by Stats. 1974, Ch. 54, p. 119, in effect January 1, 1975. Stats. 1978, Ch. 1112, in effect January 1, 1979, deleted "one-half of" before "1 percent". Stats. 1982, Ch. 5 (First Extra Session), in effect June 1, 1982, substituted "at the adjusted annual rate established pursuant to Section 19269" for "of 1 percent per month" after "interest". Stats. 1982, Ch. 1465, in effect January 1, 1983, substituted "from December 10 . . . part of the board." for "for the period . . . date of payment." after Section 19269. Stats. 1996, Ch. 1087, in effect January 1, 1997, substituted "Section 19521" for "Section 19269" after "established pursuant to".

Note.—Section 89 of Stats. 1982, Ch. 5 (First Extra Session) provided that the provisions of this act shall apply to all interest and additions to tax accruing on or after the effective date of this act.

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Article 5. Reassessments

11336. Time for completion of assessments; notice. On or before August 1 the board shall complete the assessment of all property required to be assessed and shall notify the assessees thereof. This notice shall include an announcement of the statutory period during which, and the place at which, a petition for reassessment may be filed.

History.—Stats. 1945, p. 1003, in effect September 15, 1945, substituted "first" for "third." Stats. 1974, Ch. 54, in effect January 1, 1975, restructured, deleted "of each year" after "August", and added "and shall notify the assessees thereof" after "assessed" in the first sentence; and added the second sentence. Stats. 1981, Ch. 1132, in effect January 1, 1982, substituted "August 1" for "the first Monday in August" after "before" in the first sentence, and added "a declaration of intent to petition for reassessment and" after "which," in the second sentence. Stats. 2005, Ch. 264 (SB 555), in effect January 1, 2006, deleted "declaration of intent to petition for reassessment and a" after "at which, a" in the second sentence.

11337. Inspection of assessments. Between August 1 and August 21, the assessments made by the board shall be open for inspection by all persons interested.

History.—Stats. 1974, Ch. 54, p. 119, in effect January 1, 1975, substituted "fourth" for "third", and deleted "of each year" after "August". Stats. 1981, Ch. 1132, in effect January 1, 1982, substituted "August 1 and August 21" for "the first and fourth Mondays in August" after "Between".

11338. Petition for reassessment. (a) The owner or assessee may file a petition for reassessment on or before September 20. If the petition is not filed on or before September 20, or, if the period is extended by the board, by October 5, the assessment of the board shall be final.

(b) The board may extend the period for filing a petition until October 5 provided a written request for the extension is filed with the board on or before September 20.

(c) The board shall hear the applicant on such petition on or before January 31.

History.—Stats. 1974, Ch. 54, p. 119, in effect January 1, 1975, divided the former sentence; substituted "fourth" for "third", added "or the lessee" after "owner", and added "may petition the board for reassessment." After "assessed" in the first sentence; and restructured the second sentence, and added "on or before October 1" after "petition". Stats. 1981, Ch. 1132, in effect January 1, 1982, added the subdivision letters; substituted "On or before August 21" for "at any time prior to the fourth Monday in August," before "the owner" and added "file a declaration of intent to" after "may" in the first sentence, and added the second sentence to subdivision (a); added subdivisions (b) and (c); and substituted "January 31" for "October 1" in subdivision (d). Stats. 2001, Ch. 407 (SB 1181), in effect January 1, 2002, deleted former subdivision (a) which required that owners and lessees of any properties assessed file a declaration of intent to petition the board for reassessment by August 20; relettered former subdivision (b) as subdivision (a) and deleted "If a declaration of intent to petetion has been timely filed," before "The" therein; and relettered former subdivisions (c) and (d) as (b) and (c), respectively.

Administrative remedies must be exhausted.—A taxpayer complaining of administrative action must, before seeking judicial relief, exhaust his administrative remedies. Accordingly, in an action by the State to recover the tax, a private car owner who failed to report to the board pursuant to Section 11271 and to petition the board for reassessment pursuant to Section 11338 is not entitled to secure a judicial review of the method used by the board in determining the average number of its cars in the state during the taxable year. People v. Keith Railway Equipment Co., 70 Cal.App.2d 339.

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11339. Petition for reassessment; assessment made outside regular period. (a) Any assessment made outside of the regular assessmentperiod may be the subject of a petition for reassessment. A petition for reassessment may be filed on or before the 50th day following the date of the notice of assessment.

(b) The board may extend the deadline for filing a petition for a period not to exceed 15 days, provided a written request for the extension is filed with the board on or before the expiration of the period for which the extension may be granted.

(c) If a petition for reassessment is not timely filed, the assessment of the board shall be final. The board may consider a petition which is not timely filed to be a claim for refund.

(d) The board shall hear the applicant on the petition within 90 days of the date on which the petition was filed.

History.—Added by Stats. 1974, Ch. 54, p. 119, in effect January 1, 1975. Stats. 1981, Ch. 1132, in effect January 1, 1982, added the subdivision letters; substituted the second sentence in subdivision (a) for "The petition shall be filed within 10 days of the notice of assessment"; and added subdivisions (b), (c), and (d). Stats. 2001, Ch. 407 (SB 1181), in effect January 1, 2002, deleted "A declaration of intent to petition shall be filed within 20 days of the notice of assessment and" before "A petition", substituted "50th" for "30th" after "before the" and substituted "of the notice of assessment" for "by which the declaration of intent must be filed provided the declaration of intent was timely filed" after "the date" in the second sentence of subdivision (a); deleted "declaration of intent is not timely filed, or, after a declaration of intent has been filed, a" after "If a" in the first sentence of subdivision (c); and substituted "the" for "such" after "applicant on" in the first sentence of subdivision (d).

11340. Contents of petition. Every petition for reassessment filed under Section 11338 or Section 11339 shall be in writing and shall state the specific grounds upon which the petition is founded. The petition shall include a statement of the petitioner's opinion of value of the private railroad cars assessed.

Any petition that does not meet the requirements of this section shall be deemed invalid and shall not be acted upon by the board. A petition timely filed but deemed invalid may be amended or supplemented and refiled within such time as the board may prescribe; provided, however, that no amendment of a petition filed under Section 11338 may be filed later than December 31.

History.—Added by Stats. 1978, Ch. 1209, in effect January 1, 1979. Stats. 1981, Ch. 1132, in effect January 1, 1982, substituted "December 31." for "September 15." at the end of the second sentence in the second paragraph.

11341. Notice of decision. (a) The board shall render its decision on the petition for reassessment within 45 days of the date of the hearing on the petition, and shall mail notice of its decision to the applicant.

(b) If the board determines that the amount of the assessment should be increased, the notice shall advise the applicant of the amount of additional tax that is due, and the date by which payment must be made. If the additional tax is not paid within 15 days following the date on which notice is mailed, it is delinquent, and a penalty of 10 percent of the amount of the additional tax shall be added thereto, plus interest on the amount of the additional tax at the rate of 3/4 of 1 percent per month, or fraction thereof, from the date on which the additional tax became due until the date of payment.

(c) If the board determines that the amount of the assessment should be reduced, the notice shall advise the applicant of the amount of the tax that will be refunded or credited. The board shall proceed to refund or credit the overpayment in the manner prescribed in Section 11551, and interest shall be added to the credit or refund in the amount provided in Section 11555.

History.—Added by Stats. 1981, Ch. 1132, in effect January 1, 1982.

11342. Closed hearings. A petitioner may request the board to close to the public a portion of the hearing by filing a declaration under penalty of perjury that evidence is to be presented which relates to trade secrets, the disclosure of which will be detrimental to the business interests of the owner of the trade secrets. If the board grants the request, only evidence relating to the trade secrets may be presented during the time the hearing is closed.

History.—Added by Stats. 1984, Ch. 678, in effect January 1, 1985.

Application.—This section goes further than protecting just the taxpayer, whose business affairs are protected under Section 11665. It allows a taxpayer seeking reassessment to shield trade secrets when disclosure would be detrimental to the business interests of "the owner" of the trade secrets. General American Transportation Corp. v. State Board of Equalization, 193 Cal.App.3d 1175.

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Article 6. Jeopardy Assessments*

* Article 6 was added by Stats. 1974, Ch. 54, p. 120, in effect January 1, 1975.

11351. Jeopardy assessment. If at any time after the lien date the board believes that the collection of all or part of the tax imposed by this part will be jeopardized by delay, it shall immediately determine the assessed value of the property and the tax rate to be applied. From these it shall compute the amount of tax together with any interest and penalties. The amount so determined shall be due and payable upon service of a notice of assessment upon the person assessed and shall be final 10 days after service unless the person assessed within such 10-day period petitions for reassessment.

11352. Notice of assessment. The notice of assessment shall be inscribed "jeopardy assessment" and shall be served upon the assessee in the manner prescribed in Section 11312. It shall contain in addition to the information prescribed in Section 11404 notice that the tax, interest, and penalties are due and payable at the time of service and will be delinquent 10 days thereafter unless they are paid or a petition for reassessment is filed.

11353. Petition for reassessment; security. The person against whom a jeopardy assessment is made may file a petition for reassessment with the board within 10 days of service upon him of the notice of assessment. At the time of filing the petition the person shall deposit with the board such security as the board may deem necessary to insure payment of the amount due.

11354. Delinquency penalty. A jeopardy assessment is delinquent at the time it becomes final, and if unpaid at this time, a penalty of 10 percent of the tax shall be added thereto, plus interest on the amount of tax at the adjusted annual rate established pursuant to Section 19521 from the date on which the tax becomes due and payable until the date of payment.

History.—Stats. 1978, Ch. 1112, in effect January 1, 1979, deleted "one-half of" before "1 percent". Stats. 1982, Ch. 5 (First Extra Session), in effect June 1, 1982, substituted "adjusted annual rate established pursuant to Section 19269" for "rate of 1 percent per month or fraction thereof," after "tax at the". Stats. 1996, Ch. 1087, in effect January 1, 1997, substituted "Section 19521" for "Section 19269" after "established pursuant to".

Note.—Section 89 of Stats. 1982, Ch. 5 (First Extra Session) provided that the provisions of this act shall apply to all interest and additions to tax accruing on or after the effective date of this act.

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