Laws, Regulations & Annotations
Property Taxes Law Guide – Revision 2017
Revenue and Taxation Code
Part 6. Private Railroad Car Tax
CHAPTER 3. Levy and Payment of Tax
- 11401 Levy and rate of tax
- 11403 Computation of tax rate
- 11404 Notice of assessment
- 11405 Delinquency penalty
- 11406 Absence of notice
- 11407 Excusable delay due to disaster
- 11408 Reasonable reliance on written advice; relief of tax, penalty and interest
- 11408.5 Innocent spouse relief
- 11409 Errors or delays caused by board employee; interest relief
Chapter 3. Levy and Payment of Tax
11401. Levy and rate of tax. On or before October 1, the board shall levy upon private railroad cars assessed under this part, for each year, a tax computed at the next preceding year's average rate of general property taxation in the state and shall enter the tax upon a record maintained by the board for that purpose.
History.—Stats. 1967, p. 2855, in effect November 8, 1967, added "general property" following "average rate of." Stats. 1974, Ch. 54, p, 120, in effect January 1, 1975, added "On or before October 1," at the beginning of the sentence. Stats. 1978, Ch. 1209, in effect January 1, 1979, added "railroad" between "private" and "cars".
Tax Rate.—Imposition of additional tax as a result of use of a higher rate, subsequent to Board of Supervisors v. Lonergan, 27 Cal.3d 855, wherein it was held that the Article XIII A tax-rate limitation did not apply to real or personal property on the 1978–79 secured roll, impermissibly conflicted with Section 306 of the Railroad Revitalization and Regulatory Reform Act of 1976 (49 U.S.C. § 11503), which prohibits the taxation of rail-transportation property at a rate higher than the rate generally applicable to commercial and industrial property in the same assessment jurisdiction. Trailer Train Co. v. State Board of Equalization, 697 F.2d 860, cert. den. 464 U.S. 846.
Provision of Railroad Revitalization and Regulatory Reform Act prohibiting states from assessing "rail transportation property" at higher assessment ratio than other commercial and industrial property included specialty railroad cars leased to shippers by independent car lines. ACF Industries Inc. v. California State Board of Equalization, 42 F.3d 1286.
(a) Adding the county, city, school district, and other general taxes, but not the special taxes on intangibles, aircraft, baled cotton or any other property which is subject to a uniform statewide tax rate, nor special assessments, and
(b) Dividing the amount obtained by the total assessed valuation in the state as shown by the county tax rolls for the same year.
"Total assessed valuation," as used in this section, does not include the assessments of property which is subject to a uniform statewide tax rate.
"Special assessments," as used in this section, mean any amount levied solely against real estate or real estate and improvements.
History.—Stats. 1967, p. 2855, in effect November 8, 1967, revised the section, deleting special taxes from the computation of the rate, adding subdivisions "(a)" and "(b)" to the first paragraph, deleting the former last paragraph defining special assessments, and adding the last paragraph. Stats. 1978, Ch. 1209, in effect January 1, 1979 inserted colon after "by" in first paragraph and added subsection letters "(a)" and "(b)".
11404. Notice of assessment. On or before October 15th in each year the board shall cause to be mailed to each person against whom a tax is levied a notice stating the amount of the assessment, the rate and amount of tax, and a demand that the tax be paid to the board not later than December 10th following.
History.—Stats. 1953, p. 2464, in effect September 9, 1953, substituted "10th" for "5th".
11405. Delinquency penalty. If the tax is not paid on or before December 10th following the levy of the tax, a penalty of 10 percent of the amount of the tax shall be added thereto plus interest on the amount of the tax at the adjusted annual rate established pursuant to Section 19521 from December 10th until the date of payment.
History.—Stats. 1953, p. 2464, in effect September 9, 1953, substituted "10th" for "5th" in both places. Stats. 1975, Ch. 661, p. 1431, in effect January 1, 1976, substituted "1 percent" for "one-half of 1 percent". Stats. 1982, Ch. 5 (First Extra Session), in effect June 1, 1982, substituted "adjusted annual rate established pursuant to Section 19269" for "rate of 1 percent per month, or fraction thereof," after "tax at the". Stats. 1996, Ch. 1087, in effect January 1, 1997, substituted "Section 19521" for "Section 19269" after "established pursuant to".
Note.—Section 77 of Stats. 1975, Ch. 661, provided that notwithstanding any provisions of law, additional revenues deposited to the credit of any fund or account which are attributable to the increase in interest pursuant to this act shall only be appropriated for expenditure, allocation, or transfer as provided in legislation enacted after the effective date of this act. Sec. 78 thereof provided that the interest rate change in this act shall apply to all interest accrued on or after January 1, 1976.
Note.—Section 89 of Stats. 1982, Ch. 5 (First Extra Session) provided that the provisions of this act shall apply to all interest and additions to tax accruing on or after the effective date of this act.
11406. Absence of notice. Failure to pay the tax is not excused nor is any assessment or levy invalidated because of the failure of the board to send the notice prescribed by Section 11404, the sending of an erroneous notice, or the failure of the person whose property is assessed to receive the notice.
11407. Excusable delay due to disaster. If the board finds that a person's failure to make a timely report or payment was due to a disaster, and occurred notwithstanding the exercise of ordinary care and the absence of willful neglect, the person may be relieved of the interest provided by Sections 11319, 11405, and 11430.
Any person seeking to be relieved of the interest shall file with the board a statement under penalty of perjury setting forth the facts upon which he bases his claim for relief.
History.—Added by Stats. 1981, Ch. 947, in effect January 1, 1982.
11408. Reasonable reliance on written advice; relief of tax, penalty and interest. (a) If the board finds that a person's failure to make a timely report or payment is due to the person's reasonable reliance on written advice from the board, the person may be relieved of the taxes imposed by this part and any penalty or interest added thereto.
(b) For purposes of this section, a person's failure to make a timely report or payment shall be considered to be due to reasonable reliance on written advice from the board, only if the board finds that all of the following conditions are satisfied:
(1) The person requested in writing that the board advise him or her whether a particular activity or transaction is subject to tax under this part. The specific facts and circumstances of the activity or transaction shall be fully described in the request.
(2) The board responded in writing to the person regarding the written request for advice, stating whether or not the described activity or transaction is subject to tax, or stating the conditions under which the activity or transaction is subject to tax.
(3) The liability for taxes applied to a particular activity or transaction which occurred before either of the following:
(A) Before the board rescinded or modified the advice so given, by sending written notice to the person of the rescinded or modified advice.
(B) Before a change in statutory or constitutional law, a change in the board's regulations, or a final decision of a court, which renders the board's earlier written advice no longer valid.
(c) Any person seeking relief under this section shall file with the board all of the following:
(1) A copy of the person's written request to the board and a copy of the board's written advice.
(2) A statement under penalty of perjury setting forth the facts on which the claim for relief is based.
(3) Any other information which the board may require.
(d) Only the person making the written request shall be entitled to rely on the board's written advice to that person.
History.—Added by Stats. 1990, Ch. 987, in effect January 1, 1991.
(1) A tax liability under this part was understated by a failure to pay a tax levied and required to be paid under this part, by the omission of an amount properly includable therein, or by erroneous deductions or credits claimed, and the understatement of tax liability is attributable to one spouse; or any amount of the tax was unpaid and the nonpayment of the tax liability is attributable to one spouse.
(2) The other spouse establishes that he or she did not know of, and had no reason to know of, that understatement or nonpayment.
(3) Taking into account whether or not the other spouse significantly benefited directly or indirectly from the understatement or the nonpayment and taking into account all other facts and circumstances, it is inequitable to hold the other spouse liable for the deficiency in tax attributable to that understatement or nonpayment, then the other spouse shall be relieved of liability for tax (including interest, penalties, and other amounts) to the extent that the liability is attributable to that understatement or nonpayment of tax.
(b) For purposes of this section, the determination of the spouse to whom items of understatement or nonpayment are attributable shall be made without regard to community property laws.
(c) This section shall apply to all calendar years subject to the provisions of this part, but shall not apply to any calendar year that is more than five years from the final date on the board-issued determination, five years from the return due date for nonpayment on a return, or one year from the first contact with the spouse making a claim under this section; or that has been closed by res judicata, whichever is later. reasonably prudent person would have had reason to know of the understatement or nonpayment.
(d) For purposes of paragraph (2) of subdivision (a), "reason to know" means whether or not a resonably prudent person would have had reason to know of the understatement or nonpayment.
(e) For purposes of this section, with respect to a failure to pay a levy or an omission of an item from the payment, "attributable to one spouse" may be determined by whether a spouse rendered substantial service as a person that owns a private railroad car operated upon the railroads in this state to which the understatement is attributable. If neither spouse rendered substantial services as such a person, then the attribution of applicable items of understatement shall be treated as community property.
(f) Under procedures prescribed by the board, if, taking into account all the facts and circumstances, it is inequitable to hold the other spouse liable for any unpaid tax or any deficiency (or any portion of either) attributable to any item for which relief is not available under subdivision (a), the board may relieve the other spouse of that liability.
(g) For purposes of this section, registered domestic partners, as defined in Section 297 of the Family Code, have the same rights, protections, and benefits as provided by this section, and are subject to the same responsibilities, obligations, and duties as imposed by this section, as are granted to and imposed upon spouses.
(h) The relief provided by this section shall apply retroactively to liabilities arising prior to the effective date of this section.
History.—Added by Stats. 2007, Ch. 342 (AB 1748), in effect January 1, 2008.
11409. Errors or delays caused by board employee; interest relief. (a) The board, in its discretion, may relieve all or any part of the interest imposed on a person by this part where the failure to pay tax is due in whole or in part to an unreasonable error or delay by an employee of the board acting in his or her official capacity.
(b) For purposes of this section, an error or delay shall be deemed to have occurred only if the person filed a timely report and no significant aspect of the error or delay is attributable to an act of, or a failure to act by, the taxpayer.
(c) Any person seeking relief under this section shall file with the board a statement under penalty of perjury setting forth the facts on which the claim for relief is based and any other information which the board may require.
(d) The board may grant relief only for interest imposed on tax liabilities that arise during taxable periods commencing on or after January 1, 2000.
History.—Added by Stats. 1999, Ch. 929 (AB 1638), in effect January 1, 2000. Stats. 2001, Ch. 251 (AB 1123), in effect January 1, 2002, substituted "this part" for "Section 11319" after "person by" in the first sentence of subdivision (a).