Laws, Regulations & Annotations

Property Taxes Law Guide – Revision 2013
 

Revenue and Taxation Code

Property Taxation

Part 3. Equalization

Chapter 1. Equalization by County Board of Equalization

Article 1. Generally

Section 1605

1605. Notice and review of assessment made outside regular period. (a) An assessment made outside of the regular assessment period is not effective for any purpose, including its review, equalization and adjustment by the county board, until the assessee has been notified thereof personally or by United States mail at the assessee's address as contained in the official records of the county assessor. For purposes of this subdivision, for counties in which the board of supervisors has adopted the provisions of subdivision (c) and the County of Los Angeles, receipt by the assessee of a tax bill based on that assessment shall suffice as the notice.

(b) Upon application for reduction in assessment pursuant to subdivision (a) of Section 1603, the assessment shall be subject to review, equalization and adjustment by the county board. In the case of an assessment made pursuant to Article 2 (commencing with Section 75.10) of Chapter 3.5 of Part 0.5, or Article 3 (commencing with Section 501) of Chapter 3 of Part 2 that is made outside the regular assessment period as defined in subdivision (f), or an assessment made pursuant to Article 4 (commencing with Section 531) of Chapter 3 of Part 2, the application shall be filed with the clerk in accordance with the applicable of the following:

(1) In a county other than the County of Los Angeles or a county in which the board of supervisors has adopted a resolution in accordance with subdivision (c), no later than 60 days after the date of mailing printed on the notice of assessment, or the postmark therefor, whichever is later. If the taxpayer does not receive the notice of assessment described in Section 75.31 or 534 at least 15 calendar days prior to the deadline established in the foregoing sentence, the party affected, or his or her agent, may file the application within 60 days of the date of mailing printed on the tax bill or the postmark therefor, whichever is later, along with an affidavit declaring under penalty of perjury that the notice of assessment was not timely received.

(2) In the County of Los Angeles or any county in which the board of supervisors has adopted a resolution in accordance with subdivision (c), an application subject to this subdivision shall be filed within the period specified in that subdivision.

(c) The board of supervisors of any county may by resolution require that the application for reduction pursuant to subdivision (a) of Section 1603 be filed with the clerk no later than 60 days after the date of mailing printed on the tax bill or the postmark therefor, whichever is later.

(d) In counties where assessment appeals boards have not been created and are not in existence, at any regular meeting, the board of supervisors, on the request of the assessor or any taxpayer, shall sit as the county board to equalize any assessments made by the assessor outside the regular assessment period for those assessments. Notwithstanding any other provision of law to the contrary, in any county in which assessment appeals boards have been created and are in existence, the time for equalization of assessments made outside the regular assessment period for those assessments, including assessments made pursuant to Sections 501, 503, 504, 531, and 531.5, shall be prescribed by rules adopted by the board of supervisors.

(e) If an audit of the books and records of any profession, trade, or business pursuant to Section 469 discloses property subject to an escaped assessment for any year, then the original assessment of all property of the assessee at the location of the profession, trade, or business for that year shall be subject to review, equalization and adjustment by the county board of equalization or assessment appeals board pursuant to this chapter, except in those instances when that property had previously been equalized for the year in question by the county board of equalization or assessment appeals board. The application shall be filed with the clerk no later than 60 days after the date on which the assessee was notified. Receipt by the assessee of a tax bill based upon that assessment shall suffice as that notice.

(f) For purposes of subdivision (a), "regular assessment period" means January 1 to and including July 1 of the calendar year in which the assessment, other than escape assessments, should have been enrolled if it had been timely made.

History.—Added by Stats. 1965, p. 3161, in effect September 17, 1965. Stats. 1967, p. 3340, in effect November 8, 1967, substituted the present language in the first sentence from the beginning to ". . . is not effective . . . ." Stats. 1968, p. 1461, in effect November 13, 1968, added "(a)" following "Section 1607". Stats. 1974, Ch. 180, p. 356, in effect April 24, 1974, applicable to assessments made on and after the 1974 lien date, renumbered the section which was formerly numbered 1604.1; added the subdivision letters; substituted "county board" for "Board of Equalization" in subdivision (a); substituted "subdivision (a) of Section 1603" for "Section 1607(a) of this code", and deleted "of equalization" after "county board" in the first sentence, and added the second sentence to subdivision (b); and added subdivision (c). Stats. 1978, Ch. 1112, in effect January 1, 1979, in subdivision (c) deleted reference to Section 1061 and added subdivision (d). Stats. 1979, Ch. 518, in effect January 1, 1980 substituted "date on which the assessee was notified." for "mailing of the tax bill on such assessment to the assessee." in subdivision (d) and added last sentence. Stats. 1990, Ch. 126, in effect June 11, 1990, substituted "the assessee's" for "his" after "mail at" in the first sentence, and substituted "that" for "said" after "based on", and "the" for "such" after "suffice as" in the second sentence of subdivision (a); substituted ''the" for "such" after "1603," in the first sentence, substituted "shall" for "must" after "application" in the second sentence, and added third sentence in subdivision (b); added subdivision (c); relettered former subdivisions (c) and (d) as (d) and (e), respectively; substituted "those" for "such" after "period for" in the first and second sentences, and added a comma after "531.1" in the second sentence of subdivision (d); deleted "of this code" after "Section 469", substituted "this chapter" for "Chapter 1 (commencing with Section 1601) of Part 3 of division" after "pursuant to", and substituted "that" for "such" after ''instances when" in the first sentence, substituted "shall" for "must" after "application" in the second sentence, and substituted "that" for "said" after "based upon" and substituted "that" for "such" after "suffice as" in the third sentence of subdivision (e); and added subdivision (f). Stats. 1992, Ch. 523, in effect January 1, 1993, added "However, . . . 1607." as the fourth sentence in subdivision (b). Stats. 1995, Ch. 499, in effect January 1, 1996, operative January 1, 1997, substituted "January" for "March" after "means" in subdivision (f). Stats. 1997, Ch. 940 (SB 1105), in effect January 1, 1998, added "and" after "504," and deleted ", and 531.1," after "531" in the second sentence of subdivision (d). Stats. 2000, Ch. 647 (SB 2170), added "For purposes of . . . the first class," before "Receipt" in the second sentence of subdivision (a); deleted former second, third, and fourth sentences of subdivision (b), which provided that "The application shall be filed with the clerk no later than 60 days after the date on which the assessee was notified. For counties of the first class, the application shall be filed within 60 days of the date of the mailing of the tax bill. However, an application for reduction in a supplemental assessment may be filed within 12 months following the month in which the assessee is notified of that assessment, if the party affected or his or her agent and the assessor stipulate that there is an error in the assessment as the result of the exercise of the assessor's judgment in determining the full cash value of the property and a written stipulation as to the full cash value and assessed value of the property is filed in accordance with Section 1607.", and added the second, third, and fourth sentences therein; substituted "mailing printed on the tax bill or the postmark therefor, whichever is later" for "the mailing of the tax bill" after "date of" in the first sentence of subdivision (c); and substituted "531, and 531.5," for "and 531" after "504," in the second sentence of subdivision (d). Stats. 2001, Ch. 744 (SB 1182), in effect January 1, 2002, substituted "the County of Los Angeles" for "counties of the first class" after "subdivision (c) and" in the second sentence of subdivision (a); added "in assessment" after "reduction" and added a comma after "equalization" in the first sentence, added "Article 2 (commencing with Section 75.10) of Chapter 3.5 of Part 0.5, or" after the first "pursuant to", added "of Chapter 3 of Part 2 that is made outside the regular assessment period as defined in subdivision (f)," after "Section 501)", added "an assessment made pursuant to" after "or", substituted "in accordance with the applicable of the following:" for "no later than 60 days after the date of mailing printed on the notice of assessment, or the postmark therefor, whichever is later." in the second sentence, created paragraph (1) with the former third and fourth sentences, substituted "In a county other than the County of Los Angeles or a county" for "For counties" before "in which", substituted "no later than 60 days after the date of mailing printed on the notice of assessment, or" for "and counties of the first class, an application subject to the preceding sentence shall be filed within 60 days of the date of mailing printed on the tax bill or" after "subdivision (c)," in the first sentence, added "75.31 or" after "Section", substituted "established in the foregoing sentence" for "to file the application described in Section 1603" after "the deadline", and added "of assessment" after "the notice" in the second sentence therein, and added paragraph (2) to subdivision (b).

Note.—Section 5 of Stats. 1979, Ch. 518, provided no payment by state to local government by reason of this act.

Note.—Section 10 of Stats. 2001, Ch. 744 (SB 1182) provided that no reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because this act provides for offsetting savings to local agencies or school districts that result in no net costs to the local agencies or school districts, within the meaning of Section 17556 of the Government Code.

Construction.—Section 1603 and this section contemplate not only a reduction in the value of the property to be taxed, but also a reduction in the rate applicable to the taxable property. Thus, this section provides an administrative remedy for assertion of the 1 percent rate of tax entitlement for documented commercial fishing vessels authorized by Section 227 in escape assessment situations, and a corporation's failure to exhaust that remedy by claiming the 1 percent entitlement by application for reduction in assessment barred consideration of the claimed entitlement at trial. San Diego County v. Lafayette Steel Co. 164 Cal.App.3d 690. Section 1605(e) allows a taxpayer to seek administrative review by the county board of equalization if an audit of the books and records of its profession, trade, or business pursuant to Section 469 discloses property "subject to" an escape assessment for any year. Heavenly Valley v. El Dorado County Board of Equalization, 84 Cal.App.4th 1323. Under subdivision (e) of Section 1605, where an assessor discovers property that has escaped assessment for the particular tax year and thereafter issues an escape assessment directed to that property, the taxpayer may challenge the assessment not only with respect to the property that had escaped assessment, but also as to all personal and real property of the taxpayer assessed at the location during the same tax year. County of Los Angeles v. Raytheon Co., 159 Cal.App.4th 27.

Amendment of application.—Although the statutes governing local equalization proceedings neither permit nor prohibit amendment of applications, Property Tax Rule 305(e) prohibits a substantive amendment of an application after expiration of statutory filing deadlines. Helene Curtis, Inc. v. Assessment Appeals Board, 76 Cal.App.4th 124.

Regular period.—Escape assessments made on June 20, 1977, for prior tax years were probably made during the regular assessment period for the 1977–78 tax year, in which event a taxpayer would have until September 15, 1977, to file an application for reduction of assessment; but in any event, absent evidence as to when a taxpayer received notice of the assessments and that the taxpayer did not file its application for reduction within 60 days of receipt of notice, the county did not sustain its burden of proof on the issue of whether the application for reduction was timely filed. Pacific Mutual Life Insurance Company v. Orange County, 187 Cal.App.3d 1141.

Uncompleted audit.—An application filed after the assessor completed his audit of one of four years and declined to reconsider the others was premature. Since the audit for the three years had never been completed, there were no audit disclosures that, under subdivision (e), could provide the basis for administrative review. Apple Computer, Inc. v. Assessment Appeals Board, 105 Cal.App.4th 1355.