Laws, Regulations & Annotations

Property Taxes Law Guide – Revision 2014
 

Revenue and Taxation Code

Property Taxation

Part 2. Assessment

Chapter 5. Special Types of Property

Article 1. Generally

Section 997

997. Business records. (a) The cash value of records of persons engaged in a business or profession for purposes of this division is the cash value only of the tangible material upon which, or in which, such records are recorded, maintained or stored. Such cash value shall be determined without inclusion of or consideration of the intangible value of the information or data so recorded, maintained or stored, nor the intangible right to utilize such information or data.

(b) As used in this section "records" includes all written documents and photographic reproductions thereof, recorded data, research notes, calculations, and indices maintained or utilized by persons engaged in a business or profession.

(c) Nothing in this section shall prohibit a determination of full cash value for (1) books, (2) old newspapers on microfilm, (3) computer programs and storage media for such programs taxable pursuant to Section 995, (4) records which are held for sale in the ordinary course of business, or (5) records which are purchased from a person who held such records in an inventory of goods for sale in the ordinary course of business. Records sold only when a business is sold shall not be considered as "held for sale in the ordinary course of business."

(d) Nothing in this section shall prohibit the consideration of research and development, engineering or similar costs in the valuation of tangible property, other than records.

History.—Added by Stats. 1974, Ch. 456, p. 1077, in effect July 11, 1974, operative with respect to assessments for the 1974–75 fiscal year. Stats. 1975, Ch. 1207, in effect January 1, 1976, amended Sections 2, 3, and 4 of Stats. 1974, Ch. 456, p. 1078. Stats. 1979, Ch. 928, in effect January 1, 1980, repealed Section 3 of Stats. 1974, Ch. 456, as amended by Section 3 of Stats. 1975, Ch. 1207.

Note.—Section 2(c) of Stats. 1974, Ch. 456, p. 1078, provided for state reimbursement for revenue lost. Section 3 provided that the section shall remain in effect only through the 1978–79 fiscal year, and as of such date is repealed, unless a later enacted statute, which is chaptered before March 1, 1979, deletes or extends such date. Section 4 provided that the Legislative Analyst shall report to the Legislature on or before October 15, 1977, on the economic effect of the section, including the type of records which have been classified pursuant to the section.

Note.—Section 2(c) of Stats. 1975, Ch. 1207, provided for state reimbursement for revenue lost. Section 3 provided that the section shall remain in effect only through the 1979–80 fiscal year, and as of such date is repealed, unless a later enacted statute, which is chaptered before March 1, 1980, deletes or extends such date. Section 4 provided that the Legislative Analyst shall report to the Legislature on or before October 15, 1978, on the economic effect of this act, including the type of records which have been classified pursuant to this act. Section 5 provided that no escape assessment shall be levied against property of a type classified in Section 997 of the Revenue and Taxation Code by any local agency which did not assess property of that type for the 1971–72, 1972–73, 1973–74, and 1974–75 fiscal years. Section 6 provided that Section 1 of Chapter 456 of the Statutes of 1974 is declaratory of existing law; and Sections 2 and 3 of Chapter 456 of the Statutes of 1974 are intended to provide equitable reimbursement to local agencies that have relied for the period required by this act upon the tax revenue from the assessment of the value of the intangible property classified in Section 1 of Chapter 456 of the Statutes of 1974.

Note.—Section 2 of Stats. 1979, Ch. 928, provided that notwithstanding Section 2231 or 2234 of the Revenue and Taxation Code, no appropriation is made by this act pursuant to these sections because the duties, obligations, or responsibilities imposed on local agencies or school districts by this act are such that related costs are incurred as part of their normal operating procedures. It is recognized, however, that a local agency or school district may pursue any remedies to obtain reimbursement available to it under Chapter 3 (commencing with Section 2201) of Part 4 of Division 1 of that code.