Laws, Regulations & Annotations

Property Taxes Law Guide – Revision 2017

Revenue and Taxation Code

Property Taxation

Part 2. Assessment

Chapter 3. Assessment Generally

Article 3. Arbitrary and Penal Assessments

Section 503

503. Fraudulent act, collusion, causing escape of taxable tangible property. If any taxpayer or the taxpayer's agent through a fraudulent act or omission causes, or if any fraudulent collusion between the taxpayer or the taxpayer's agent and the assessor or any of the assessor's deputies causes, any taxable tangible property to escape assessment in whole or in part, or to be underassessed, the assessor shall assess the property in the lawful amount and add a penalty of 75 percent of the additional assessed value so assessed.

History.—Added by Stats. 1967, p. 3337, in effect November 8, 1967. Stats. 1996, Ch. 1087, in effect January 1, 1997, substituted "the taxpayer's agent" for "his agent" twice, substituted "the assessor's deputies" for "his deputies" after "assessor or any of", substituted "add a penalty of 75 percent of the additional assessed value so assessed." for "impose the penalty provided for in Section 504" after "the lawful amount and".

Construction.—Under prior law this section referred to the amount of property to be returned and did not impose a penalty for a false valuation, even though willfully made. Clunie v. Siebe, 112 Cal. 593.

Constitutionality.—Former section 503 did not violate the separation of powers or due process provisions of the constitution. L. B. Foster Co. v. Los Angeles County, 265 Cal.App.2d 24.