Laws, Regulations & Annotations

Property Taxes Law Guide – Revision 2014
 

Property Tax Annotations


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B

205.0000 BUSINESS INVENTORY EXEMPTION

Annotation 205.0100

205.0100 Penalties.

1. (a) Revenue and Taxation Code section 219 allows the exemption for escaped inventory enrolled under Revenue and Taxation Code section 531, provided that the inventory should not be properly enrolled under other specific sections which disallow the exemption.

(b) Section 531 should not be used for willful evasion of personal property taxation. Escapes of that nature should be enrolled under Revenue and Taxation Code section 502.

(c) If Revenue and Taxation Code section 463 and Revenue and Taxation Code section 504 penalties are to be applied, enrollment should be under section 502, and the penalties will apply to the net amount after allowance for the exemption.

2. If a taxpayer with over $30,000 inventory willfully under-reports feed and does not report feed stored at another location:

(a) The section 504 penalty would only apply to the amount of feed that escaped, and enrollment should be under Revenue and Taxation Code section 531.4 for the reported location.

(b) The feed stored at the second location should be handled as 1. (c), above. The section 504 penalty applies.

(c) No exemption is allowed under section 531.4, but the second location calls for penalties on the net amount.

3. If a taxpayer with over $30,000 inventory at each of two locations receives and files a statement for only one of the locations:

(a) The escaped property at the second location should be enrolled under section 531 with the ten percent penalty.

(b) No enrollment for the second location under section 531.4 because no report was made for this property.

(c) If investigation indicated that the taxpayer willfully failed to disclose the second location, the procedure in 1. (a), above, should be used. C 2/25/1980.