Laws, Regulations & Annotations

Property Taxes Law Guide – Revision 2011
 

Revenue and Taxation Code

Other Taxes

Part 6. Private Railroad Car Tax

CHAPTER 5. Overpayments and Refunds


Chapter 5. Overpayments and Refunds

Article 1. Claim for Refund

11551. Excess payments; certification. [Repealed by Stats. 1979, Ch. 516, in effect January 1, 1980.]

11551. Excess payments; certification. If the board determines that any amount, penalty, or interest has been paid more than once or has been erroneously or illegally collected or computed, the board shall set forth that fact in the records of the board and shall certify the amount collected in excess of the amount legally due and the person from whom it was collected or by whom paid. The excess amount collected or paid shall be credited by the board on any amounts then due and payable from the person from whom the excess amount was collected or by whom it was paid under this part, and the balance shall be refunded to the person, or his or her successors, administrators, or executors. Any proposed determination by the board pursuant to this section with respect to an amount in excess of fifteen thousand dollars ($15,000) shall be available as a public record for at least 10 days prior to the effective date of that determination.

History.—Added by Stats. 1979, Ch. 516, in effect January 1, 1980. Stats. 1987, Ch. 498, in effect January 1, 1988, added "or her" after "his" in the second sentence of the first paragraph; and substituted "fifteen" for "five" after "exceeding", substituted "($15,000)" for "($5,000)" after "dollars", and added "or her" after "his" in the first sentence of the second paragraph. Stats. 1994, Ch. 726, in effect September 22, 1994, deleted "to the State Board of Control" after "and shall certify" in the first sentence; substituted "The" for "If approved by the State Board of Control, the" before "excess" in the second sentence; added the third sentence; and deleted the second paragraph which read: "In the case, however, of a determination by the board that an amount not exceeding fifteen thousand dollars ($15,000) was not required to be paid under this part, the board without obtaining approval of the State Board of Control may credit the amount on any amounts then due and payable under this part from the person by whom the amount was paid and may refund the balance to the person or his or her successors, administrators, or executors."

11552. Disposition of excess payments. [Repealed by Stats. 1979, Ch. 516, in effect January 1, 1980.]

11553. Time for filing claims. No credit or refund shall be allowed after four years from December 10 of the year in which the assessment is made or after six months from the date of overpayment, whichever period expires the later, unless a written claim is filed with the board within such period.

History.—Stats. 1957, p. 2022, in effect September 11, 1957, substantially revised this section, which formerly provided for a limitation of three years from the "date of overpayment." Stats. 1974, Ch. 54, p. 121, in effect January 1, 1975, substituted "four" for "three", and substituted "December 10" for "the first Monday in August".

11553.5. Filing extension; disability. (a) The limitation period specified in Section 11553 shall be suspended during any period of a person's life that the person is financially disabled.

(b) (1) For purposes of subdivision (a), a person is financially disabled if the person is unable to manage his or her financial affairs by reason of medically determinable physical or mental impairment of the person which can be expected to result in death or which has lasted or can be expected to last for a continuous period of not less than 12 months. A person shall not be considered to have an impairment unless proof of the existence thereof is furnished in the form and manner as the board may require.

(2) A person shall not be treated as financially disabled during any period that the person's spouse or any other person is authorized to act on behalf of the person in financial matters.

(c) This section applies to periods of disability commencing before, on, or after the effective date of the act adding this section, but does not apply to any claim for refund that (without regard to this section) is barred by the operation or rule of law, including res judicata, as of the effective date of the act adding this section.

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

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11554. Form and content of claim. The claim shall be in writing and shall state the specific grounds upon which it is founded.

11555. Interest on overpayment. Interest shall be paid upon the amount of any overpayment of tax at the adjusted annual rate established pursuant to Section 19521 upon the amount found to have been illegally collected from the date of payment of the amount to the date of allowance of credit on account of the overpayment or to a date preceding the date of the refund warrant by not more than 30 days, the date to be determined by the board from the first day of the month following the month the tax becomes due. The interest shall be paid:

(a) In the case of a refund, to the last day of the calendar month following the date upon which the person making the overpayment, if he or she has not already filed a claim, is notified by the board that a claim may be filed or the date upon which the claim is approved by the board, whichever date is the earlier.

(b) In the case of a credit, to the same date as that to which interest is computed on the tax or amount against which the credit is applied.

History.—Added by Stats. 1972, p. 2530, in effect March 7, 1973. Stats. 1974, Ch. 54, p. 121, in effect January 1, 1975, substituted "upon the amount of any overpayment" for "upon any overpayment of any amount", and added "from the first day of the month following the month the tax becomes due" at the end of the first sentence after "board"; and added the second sentence and subdivisions (a) and (b) thereof. Stats. 1975, Ch. 661, p. 1432, in effect January 1, 1976, substituted "1 percent" for "one-half of 1 percent" in the first sentence. 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" after "tax at the" in the first sentence. Stats. 1996, Ch. 1087, in effect January 1, 1997, substituted "Section 19521" for "Section 19269" after "established pursuant to" in the first sentence; substituted "he or she" for "he" in subdivision (a).

Note.—Section 76 of Stats. 1975, Ch. 661, provided that notwithstanding Section 2231 of the Revenue and Taxation Code, there shall be no reimbursement pursuant to this section nor shall there be any appropriation made by this act because this act contains a revenue source which may be utilized by local governments to cover the cost of the mandate. Sec. 78 thereof provided that the interest rate change in this act shall apply to all interest accrued on or after January 1, 1976.

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 2. Suit for Refund

11571. Injunction forbidden. No injunction or writ of mandate or other legal or equitable process shall issue in any suit, action, or proceeding in any court against this State or against any officer of the State to prevent or enjoin under this part the assessment of property or the collection of any amount required to be collected.

Railroad revitalization and regulatory reform act.—In action under the Act, railroad car companies' offer of district court's prior stipulated order enjoining collection of more than 59.6% of taxes assessed, as sole evidence of Board discrimination, would not support grant of preliminary injunction to limit 1986 tax and prevent collection of portion of that tax based on Board's higher valuation of true market value. ACF Industries v. State Board of Equalization, 653 F.Supp. 390.

11572. Necessity for refund claim. No suit or proceeding shall be maintained in any court for the recovery of any amount alleged to have been erroneously or illegally assessed or collected unless a claim for refund or credit has been duly filed.

History.—Stats. 1945, p. 1003, in effect September 15, 1945, substituted "board" for "State Treasurer." Stats. 1957, p. 2022, in effect September 11, 1957, completely revised this section, which previously had provided for payment under protest and a suit in Sacramento County.

Scope of Review.—In an action for refund of taxes paid on railroad flatcars, the trial court utilized the proper standards of review where it applied the substantial evidence test of review to all questions of fact, including the Board's application of valuation methods to the flatcars, and it applied the independent judgment test of review to the question of law posed by the lessor's challenge of the valuation method itself. Trailer Train Company v. State Board of Equalization, 180 Cal.App.3d 565.

11573. Action for refund; limitation. Within 90 days after the mailing of the notice of the board's action upon a claim for refund or credit, the claimant may bring an action against the board on the grounds set forth in the claim in a court of competent jurisdiction in any city or city and county of this State in which the Attorney General has an office for the recovery of the whole or any part of the amount with respect to which the claim has been disallowed.

History.—Original section provided that no action may be brought more than 90 days after payment of amount sought to be recovered. Stats. 1949, p. 1342, in effect October 1, 1949, extended the limitation period from 90 days to one year. Stats. 1957, p. 2022, in effect September 11, 1957, completely revised the section to read as above.

11574. When refund claim not acted upon. If the board fails to mail notice of action on a claim within six months after the claim is filed, the claimant may, prior to the mailing of notice by the board, consider the claim disallowed and bring an action against the board on the grounds set forth in the claim for the recovery of the whole or any part of the amount claimed as an overpayment.

History.—Original section provided that court shall not consider any grounds of illegality other than those set forth in the protest. Stats. 1957, p. 2022, in effect September 11, 1957, completely changed subject matter of the section.

11574.5. Failure to bring timely suit. Failure to bring suit or action within the time specified in this article constitutes a waiver of all demands against the State on account of any alleged overpayments.

History.—Added by Stats. 1957, p. 2022, in effect September 11, 1957.

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11575. Disposition of amount of judgment. If judgment is rendered for the plaintiff, the amount of the judgment shall first be credited on any amounts due from the plaintiff under this part, and the balance of the judgment shall be refunded to the plaintiff.

11576. Interest. In any judgment, interest shall be allowed at the adjusted annual rate established pursuant to Section 19521 upon the amount found to have been illegally collected from the date of payment of the amount to the date of allowance of credit on account of the judgment or to a date preceding the date of the refund warrant by not more than 30 days, the date to be determined by the board.

History.—Stats. 1945, p. 1003, in effect September 15, 1945, substituted "board" for "Controller". Stats. 1975, Ch. 661, p. 1432, in effect January 1, 1976, substituted "12 percent" for "6 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 12 percent per annum" after "allowed at the". Stats. 1996, Ch. 1087, in effect January 1, 1997, substituted "Section 19521" for "Section 19269" after "established pursuant to".

Note.—Section 76 of Stats. 1975, Ch. 661, provided that notwithstanding Section 2231 of the Revenue and Taxation Code, there shall be no reimbursement pursuant to this section nor shall there be any appropriation made by this act because this act contains a revenue source which may be utilized by local governments to cover the cost of the mandate. Sec. 78 thereof provided that the interest rate change in this act shall apply to all interest accrued on or after January 1, 1976.

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.

11577. Judgment for assignee forbidden. A judgment shall not be rendered in favor of the plaintiff in any action brought against the board to recover any amount paid when the action is brought by or in the name of an assignee of the person who paid the amount.

History.—Stats. 1945, p. 1003, in effect September 15, 1945, substituted "board" for "State Treasurer".

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Article 3. Cancellations

11596. Cancellation of illegal assessments. [Repealed by Stats. 1987, Ch. 498, in effect January 1, 1988.]

11596. Cancellation of illegal assessments. If any amount for taxes, penalty and interest has been illegally determined either by the person filing the return or by the board, the board shall set forth that fact in its records, certify the amount determined to be in excess of the amount legally due and the person against whom the determination was made, and authorize the cancellation of the amount upon the records of the board. Any proposed determination by the board pursuant to this section with respect to an amount in excess of fifteen thousand dollars ($15,000) shall be available as a public record for at least 10 days prior to the effective date of that determination.

History.—Added by Stats. 1987, Ch. 498, in effect January 1, 1988. Stats. 1994, Ch. 726, in effect September 22, 1994, deleted "in excess of fifteen thousand dollars ($15,000)" after "penalty and interest", substituted ", certify" for "and shall certify to the State Board of Control" after "in its records", and substituted ", and" for ". If the State Board of Control approves, it shall" after "determination was made" in the first sentence; deleted former third sentence which read, "If an amount not exceeding fifteen thousand dollars ($15,000) has been illegally determined either by the person filing a return or by the board, the board without certifying this fact to the State Board of Control shall authorize the cancellation of the amount upon the records of the board."; and added a new third sentence.

11597. Cancellation of penalties; petition. (a) Any penalty provided for in Section 11341, 11354, 11405, or 11430 may be canceled by the board upon a finding that (1) the failure to make a timely payment is due to reasonable cause and circumstances beyond the taxpayer's control, and occurred notwithstanding the exercise of ordinary care and the absence of willful neglect, provided the principal payment is made within 30 days after the delinquency date, or (2) there was an inadvertent error in the amount of payment made by the taxpayer, provided the principal payment for the proper amount of tax due is made within 10 days after the notice of shortage is mailed by the board.

(b) Except as provided in subdivision (c), any taxpayer seeking cancellation of the penalty shall file with the board a petition for cancellation or refund within 20 days of payment of the principal amount of the tax or within 20 days after the board mails notice of the entry of the penalty, whichever date is later. The petition shall be accompanied by a statement under penalty of perjury setting forth the facts upon which the claim for relief is based.

(c) The board shall establish criteria that provides for efficient resolution of requests for relief pursuant to this section.

History.—Added by Stats. 1982, Ch. 1465, in effect January 1, 1983. Stats. 2000, Ch. 1052 (AB 2898), in effect January 1, 2001, designated the former first paragraph as subdivision (a); designated the former second paragraph as subdivision (b) and added "Except as provided in subdivision (c)," before "any taxpayer" in the first sentence therein; and added subdivision (c).

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