Laws, Regulations & Annotations

Property Taxes Law Guide – Revision 2017

Revenue and Taxation Code

Property Taxation

Part 2. Assessment

Chapter 3. Assessment Generally

Article 4. Property Escaping Assessment

Section 531.1

531.1. Escaped property; incorrect exemption. Upon the termination of an exemption pursuant to Section 271.5 or 276.3, upon receipt of a notice pursuant to Section 284, or upon indication from any audit or other source that an exemption has been incorrectly allowed, the assessor shall make a redetermination of eligibility for the exemption. If an exemption or any portion of an exemption has been terminated or has been incorrectly allowed, an escape assessment in the amount of the exemption, or that portion of the exemption that has been terminated or erroneously allowed, with interest as provided in Section 506, shall be made; except that where the exemption was terminated pursuant to Section 271.5 or 276.3 or where the exemption or a portion of the exemption was allowed as the result of an assessor's error, the amount of interest shall be forgiven. If the exemption was incorrectly allowed because of erroneous or incorrect information submitted by the claimant with knowledge that the information was erroneous or incomplete, the penalty provided in Section 504 shall be added to the assessment.

History.—Added by Stats. 1967, p. 3338, in effect November 8, 1967. Stats. 1970, p. 1069, in effect November 23, 1970, added "or other source" after "auditor" in the first sentence of the first paragraph; deleted "veteran's" as it modified "exemption" throughout the first paragraph and substituted "an" for "a" as required; and added the provisions pertaining to "any portion of an (the) exemption" and the second clause of the second sentence of the first paragraph. Stats. 2002, Ch. 775 (SB 2092), in effect January 1, 2003, added "Upon the termination of an exemption pursuant to Section 276.3," before "Upon receipt of" and added an "a" before "notice pursuant to" in the first sentence; added "terminated or has been" after "exemption has been" and added "terminated or" after "that has been" in the first clause, and added "was terminated pursuant to Section 276.3 or where the exemption" after "where the exemption" in the second clause of the second sentence; and substituted "the" for "such" after "with knowledge that" in the third sentence of the first paragraph. Stats. 2011, Ch. 351 (SB 947), in effect January 1, 2012, added "271.5 or" after "pursuant to Section" in the first and second sentences of the first paragraph.