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 531.3

531.3. Escaped personal property; failure to report cost accurately. If the assessor requires an assessee to describe personal property in such detail as shows the cost thereof but the assessee omits to report the cost of the property accurately, notwithstanding that this information is available to the assessee, to the extent that this omission on the part of the assessee causes the assessor not to assess the property or to assess it at a lower valuation than he would enter upon the roll were the cost reported to him accurately, that portion of the property as to which the cost is unreported, in whole or in part, shall be assessed as required by law. If the omission is willful or fraudulent, the penalty and interest provided in Sections 504 and 506 shall be added to the additional assessment; otherwise only the interest provided in Section 506 shall be so added.

History.—Stats. 1969, p. 3164, in effect November 10, 1969, renumbered the section which was formerly numbered 507.

Inaccurate reporting not a prerequisite to escape assessment.—The fact that escape assessments are allowed under this section because of inaccurate reporting does not impliedly exclude escape assessments when cost has been correctly reported. Taxable property must be assessed and a previous underassessment cannot be sustained although all parties acted in good faith. Ex-Cell-O Corp. v. Alameda County, 32 Cal.App.3d 135.

Inaccurate report.—A standard cost accounting system utilizing variance accounts carrying certain expenses not recorded as costs comes under the provisions of this section and results in the addition of the interest provided by section 506 and disallowance of the section 219 inventory exemption for escape assessments made hereunder. Beckman Instruments, Inc. v. Orange County, 53 Cal.App.3d 767.