Bill Text: CA AB2756 | 2013-2014 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Tax administration: property taxes and diesel fuel taxes.

Spectrum: Partisan Bill (Democrat 6-0)

Status: (Vetoed) 2014-09-29 - Vetoed by Governor. [AB2756 Detail]

Download: California-2013-AB2756-Amended.html

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BILL NUMBER: AB 2756	AMENDED
	BILL TEXT

	AMENDED IN SENATE  AUGUST 4, 2014
	AMENDED IN ASSEMBLY  MAY 23, 2014
	AMENDED IN ASSEMBLY  APRIL 22, 2014

INTRODUCED BY   Committee on Revenue and Taxation (Bocanegra (Chair),
Gordon, Mullin, Pan, V. Manuel Pérez, and Ting)

                        MARCH 24, 2014

   An act to amend  and renumber Section 674 of, and to add
Article 8.5 (commencing with Section 674) to Chapter 3 of Part 2 of
Division 1 of, the Revenue and Taxation Code, relating to property
taxation.  Sections 60501 and 60505.5 of the Revenue and
Taxation Code, relating to taxation. 


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2756, as amended, Committee on Revenue and Taxation. 
Assessment analysts: certification.   Diesel Fuel Tax
Law: reimbursements.  
   The Diesel Fuel Tax Law imposes a tax upon the removal, entry,
sale, delivery, or specified use of diesel fuel, at a specified rate
per gallon. That law provides for a reimbursement of the amount of
that tax to persons who have used that tax-paid fuel in specified
nontaxable uses, which is allowed through a claim for refund. 

   This bill would allow a claim for refund for amounts of tax paid
on the biodiesel fuel portion of dyed blended biodiesel fuel removed
from an approved terminal at the terminal rack, as provided, to the
extent a supplier can show that the tax on that biodiesel fuel has
been paid by the same supplier.  
   Existing law provides for the annual assessment and collection of
property taxes by each county, and provides for the state
administration of the property tax by the State Board of
Equalization.  
   The California Constitution generally limits ad valorem taxes on
real property to 1% of the full cash value of that property. For
purposes of this limitation, "full cash value" is defined as the
assessor's valuation of real property as shown on the 1975-76 tax
bill under "full cash value" or, thereafter, the appraised value of
that real property when purchased, newly constructed, or a change in
ownership has occurred.  
   Existing property tax law requires a transferee of real property
or a manufactured home that is locally assessed to file a change in
ownership statement with the assessor of the county in which the
property or manufactured home is located, and also requires a
corporation, partnership, limited liability company, or other legal
entity to file a change in ownership statement with the board.
 
   Existing property tax law also includes various property tax
exemptions as authorized or established by the California
Constitution. 
   This bill would prohibit a person from making decisions with
regard to change in ownership, or with regard to property tax
exemptions, except a homeowners' exemption claim, as an employee of
the state, a county, or a city and county, unless he or she is the
holder of a valid assessment analyst certificate issued by the board.
The bill would require the board to provide for the examination of
applicants for a certificate and would authorize the board to
contract with the Department of Human Resources to give the
examinations. The bill would provide for an advanced certificate,
pursuant to a course of study prescribed by, and on examination
prepared by, the board. The bill would require prescribed annual
training for certification, including advanced certification. Failure
to complete training as required would be grounds for revocation.
The bill would also authorize the board to issue temporary
certificates and interim certificates under prescribed circumstances.
This bill would specify that its provision are not to be construed
to impede assessors from managing their staff resources efficiently
regarding exemption applications and change in ownership documents,
provided that noncertificated staff are not responsible for making
exemption or change in ownership decisions. 
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

   SECTION 1.    Section 60501 of the   Revenue
and Taxation Code   is amended to read: 
   60501.  Persons who have paid a tax for diesel fuel lost, sold, or
removed as provided in paragraph (4) of subdivision (a), or used in
a nontaxable use, other than on a farm for farming purposes or in an
exempt bus operation, shall, except as otherwise provided in this
part, be reimbursed and repaid the amount of the tax.
   (a)  A   Except as otherwise provided in
subdivision (b), a  claim for refund with respect to diesel fuel
is allowed under this section only if all of the following apply:
   (1) Tax was imposed on the diesel fuel to which the claim relates.

   (2) The claimant bought or produced the diesel fuel and did not
sell or resell it in this state except as provided in paragraph (4).
   (3) The claimant has filed a timely claim for refund that contains
the information required under subdivision (b) and the claim is
supported by the original invoice or original invoice facsimile
retained in an alternative storage media showing the purchase. If no
original invoice was created, electronic invoicing shall be accepted
as reflected by a computerized facsimile when accompanied by an
original copy of the bill of lading or fuel manifest that can be
directly tied to the electronic invoice.
   (4) The diesel fuel was any of the following:
   (A) Used for purposes other than operating motor vehicles upon the
public highways of the state.
   (B) Exported for use outside of this state. Diesel fuel carried
from this state in the fuel tank of a motor vehicle is not deemed to
be exported from this state unless the diesel fuel becomes subject to
tax as an import under the laws of the destination state.
   (C) Used in any construction equipment that is exempt from vehicle
registration pursuant to the Vehicle Code, while operated within the
confines and limits of a construction project.
   (D) Used in the operation of a motor vehicle on any highway that
is under the jurisdiction of the United States Department of
Agriculture and with respect to the use of the highway the claimant
pays, or contributes to, the cost of construction or maintenance
thereof pursuant to an agreement with, or permission of, the United
States Department of Agriculture.
   (E) Used in any motor vehicle owned by any county, city and
county, city, district, or other political subdivision or public
agency when operated by it over any highway constructed and
maintained by the United States or any department or agency thereof
within a military reservation in this state. If the motor vehicle is
operated both over the highway and over a public highway outside the
military reservation in a continuous trip the tax shall not be
refunded as to that portion of the diesel fuel used to operate the
vehicle over the public highway outside the military reservation.
   Nothing contained in this section shall be construed as a refund
of the tax for the use of diesel fuel in any motor vehicle operated
upon a public highway within a military reservation, which highway is
constructed or maintained by this state or any political subdivision
thereof.
   As used in this section, "military reservation" includes any
establishment of the United States Government or any agency thereof
used by the Armed Forces of the United States for military, air, or
naval operations, including research projects.
   (F) Sold by a supplier and which was sold to any consulate officer
or consulate employee under circumstances which would have entitled
the supplier to an exemption under paragraph (6) of subdivision (a)
of Section 60100 if the supplier had sold the diesel fuel directly to
the consulate officer or consulate employee.
   (G) Lost in the ordinary course of handling, transportation, or
storage.
   (H) (i) Sold by a person to the United States and its agencies and
instrumentalities under circumstances that would have entitled that
person to an exemption from the payment of diesel fuel tax under
Section 60100 had that person been the supplier of this diesel fuel.
   (ii) Sold by a supplier and which was sold by credit card to the
United States and its agencies and instrumentalities under
circumstances which would have entitled the supplier to an exemption
under Section 60100 if the supplier had sold the diesel fuel directly
to the United States and its agencies and instrumentalities.
   (I) Sold by a person to a train operator for use in a
diesel-powered train or for other off-highway use under circumstances
that would have entitled that person to an exemption from the
payment of diesel fuel tax under Section 60100 had that person been
the supplier of this diesel fuel.
   (J) Removed from an approved terminal at the terminal rack, but
only to the extent that the supplier can show that the tax on the
same amount of diesel fuel has been paid more than one time by the
same supplier. 
   (b) Where tax is not imposed on dyed blended biodiesel fuel upon
removal from an approved terminal at the terminal rack, if tax was
previously imposed on the biodiesel fuel portion of the dyed blended
biodiesel fuel, then, pursuant to paragraph (1) of subdivision (a), a
claim for refund is allowed for the tax that was paid on that
biodiesel fuel, but only to the extent a supplier can show that the
tax on that biodiesel fuel has been paid by the same supplier. 

   (b) 
    (c)  Each claim for refund under this section shall
contain the following information with respect to all of the diesel
fuel covered by the claim:
   (1) The name, address, telephone number, and permit number of the
person that sold the diesel fuel to the claimant and the date of the
purchase.
   (2) A statement by the claimant that the diesel fuel covered by
the claim did not contain visible evidence of dye.
   (3) A statement, which may appear on the invoice, original invoice
facsimile, or similar document, by the person that sold the diesel
fuel to the claimant that the diesel fuel sold did not contain
visible evidence of dye.
   (4) The total amount of diesel fuel covered by the claim.
   (5) The use made of the diesel fuel covered by the claim described
by reference to specific categories listed in paragraph (4) of
subdivision (a).
   (6) If the diesel fuel covered by the claim was exported, a
statement that the claimant has the proof of exportation. 
   (c) 
    (d)  Each claim for refund under this section shall be
made on a form prescribed by the board and shall be filed for a
calendar year. If, at the close of any of the first three quarters of
the calendar year, more than seven hundred fifty dollars ($750) is
refundable under this section with respect to diesel fuel used or
exported during that quarter or any prior quarter during the calendar
year, and for which no other claim has been filed, a claim may be
filed for the quarterly period. To facilitate the administration of
this section, the board may require the filing of claims for refund
for other than yearly periods.
   SEC. 2.    Section 60505.5 of the   Revenue
and Taxation Code   is amended to read: 
   60505.5.  The claim for refund forms prescribed in subdivision
 (c)   (d   )  of Section 60501
and subdivision (d) of Section 60502 may include, but not be limited
to, electronic media. The claim for refund forms shall be
authenticated in a form or pursuant to methods as may be prescribed
by the board. 
  SECTION 1.    The Legislature finds and declares
all of the following:
   (a)  County assessors are required to follow complex state laws in
the performance of their duties.
   (b)  The application of those laws is intended to provide
consistent and accurate assessment practices across the state.
   (c)  It is the intent of the Legislature that the interests of
taxpayers be protected by ensuring that decisions regarding
eligibility of a property for exemption, other than homeowners'
exemptions, or whether a transaction is a change in ownership or
qualifies for an exclusion from a change in ownership, or both, be
made by staff who is certified to make those decisions.
   (d)  It is further the intent of the Legislature that
implementation of education and certification requirements required
by this act be undertaken in the most efficient and economical
manner, utilizing existing resources of California county assessors
with the advice and counsel of the State Board of Equalization.
   (e)  It is further the intent of the Legislature that this act be
construed as an act necessary for the implementation of Article XIII
A of the California Constitution and, as such, is not a program or
higher level of service mandated by the state.  
  SEC. 2.    Section 674 of the Revenue and Taxation
Code is amended and renumbered to read:
   680.  (a) All contracts for the performance of appraisal work for
assessors by any person who is not an employee of the state, any
county, or any city shall be entered into only after at least two
competitive bids and shall be entered into either on a fixed fee
basis or on the basis of an hourly rate with a maximum dollar amount.

   (b) In addition to any provision in the Real Estate Appraisers'
Licensing and Certification Law (Part 3 (commencing with Section
11300) of Division 4 of the Business and Professions Code), a
contractor shall maintain the confidentiality of assessee information
and records as provided in Sections 408, 451, and 481 that is
obtained in performance of the contract.
   (1) A request for information and records from an assessee shall
be made by the assessor. The assessor may authorize a contractor to
request additional information or records, if needed. However, a
contractor shall not request that information or records without the
written authorization of the assessor.
   (2) A contractor shall not provide appraisal data in his or her
possession to the assessor or a contractor of another county who is
not a party to the contract. An assessor may provide that data to the
assessor of another county as provided in subdivision (b) of Section
408.
   (c) A contractor may not retain information contained in, or
derived from, an assessee's confidential information and records
after the conclusion, termination, or nonrenewal of the contract.
Within 90 days of the conclusion, termination, or nonrenewal of the
contract, the contractor shall:
   (1) Purge and return to the assessor any assessee records, whether
originals, copies, or electronically stored, provided by the
assessor or otherwise obtained from the assessee.
   (2) Provide a written declaration to the assessor that the
contractor has complied with this subdivision.
   (d) All contracts entered into pursuant to subdivision (a) shall
include a provision incorporating the requirements of subdivisions
(b) and (c). This provision of the contract shall use language that
is prescribed by the board.
   (e) For purposes of this section, a "contractor" means any person
who is not an employee of the state, any county, or any city who
performs appraisal work pursuant to a contract with an assessor.
 
  SEC. 3.    Article 8.5 (commencing with Section
674) is added to Chapter 3 of Part 2 of Division 1 of the Revenue and
Taxation Code, to read:

      Article 8.5.  Assessment Analyst Certificates


   674.  (a) A person shall not make decisions with regard to changes
in ownership as an employee of the state, a county, or a city and
county, unless he or she is the holder of a valid assessment analyst
certificate issued by the board.
   (b) A person shall not make decisions with regard to property tax
exemptions, except for homeowners' exemption claims, as an employee
of the state, a county, or a city and county, unless he or she is the
holder of a valid assessment analyst certificate issued by the
board.
   (c) The board shall provide for the examination of applicants for
an assessment analyst certificate and may contract with the
Department of Human Resources to give the examinations. Examinations
shall be prepared by the board with the advice and assistance of a
committee of five assessors selected by the California Assessors'
Association for this purpose. No certificate shall be issued to any
person who has not attained a passing grade in the examination and
demonstrated to the board that he or she is competent to make change
in ownership or exemption decisions, or both, as that competency is
defined in regulations duly adopted by the board. However, any
applicant for a certificate who is denied a certificate pursuant to
this section shall have a right to a review of that denial in
accordance with the Administrative Procedure Act (Chapter 5
(commencing with Section 11500) of Part 1 of Division 3 of Title 2 of
the Government Code).
   (d) This section does not apply to a person holding a valid
appraiser's or advanced appraiser's certificate issued by the board.
   (e) The board shall not impose any charge upon a county or city
and county or an applicant for an examination or certification under
this section or for training conducted by the board under Section
675.
   675.  (a) (1) In order to retain a valid certificate, every
certified assessment analyst shall complete at least 24 hours of
training conducted or approved by the board in each one-year period.
   (2) Any training time in excess of the 24-hour minimum that is
accumulated in any one year shall be carried over as credit for
future training requirements, with a limit of three years in which
the carryover time may be credited.
   (3) Failure to complete training in accordance with this
subdivision shall constitute grounds for revocation of a certificate.
A proceeding to revoke shall be conducted in accordance with the
Administrative Procedure Act (Chapter 5 (commencing with Section
11500) of Part 1 of Division 3 of Title 2 of the Government Code).
   (4) Training shall include, but not be limited to, new
developments in applicable case law, statutory law, and
administrative rules.
   (b) (1) The board shall issue an advanced assessment analyst
certificate for an applicant that has held a certificate issued in
accordance with Section 674 for at least three years and has done at
least one of the following:
   (A) Has successfully completed an advanced course of study
prescribed pursuant to paragraph (2).
   (B) Has passed an advanced level examination prepared pursuant to
paragraph (2).
   (2) The board, with the advice and assistance of five assessors
selected by the California Assessors' Association, shall prescribe an
advanced course of study and prepare the advanced level examination.

   (3) In order to retain a valid advanced assessment analyst
certificate, every holder shall complete at least 12 hours of
training in each one-year period.
   (4) Any training time for the advanced assessment analyst
certificate that is in excess of the 12-hour minimum accumulated in
any one year shall be carried over as a credit for future training
requirements, with a limit of two years in which the carryover time
may be credited.
   (5) Failure to complete training in accordance with this
subdivision shall constitute grounds for revocation of an advanced
assessment analyst certificate. A proceeding to revoke shall be
conducted in accordance with the Administrative Procedure Act
(Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of
Title 2 of the Government Code).
   (6) Training to retain the advanced assessment analyst certificate
shall include, but not be limited to, new developments in applicable
case law, statutory law, and administrative rules.
   676.  (a) At the time of certification, each applicant shall
disclose, on forms provided by the board, his or her financial
interest in any legal entity. Thereafter, the form shall be completed
annually.
   (b) If the applicant is also required to annually file with the
Fair Political Practices Commission pursuant to Article 3 (commencing
with Section 87300) of Chapter 7 of Title 9 of the Government Code,
a duplicate of that filing shall meet the requirements of this
section.
   677.  The board may issue a temporary certificate to a person who
is newly employed by the state, a county, or a city and county in
order to afford the person the opportunity to apply for and take an
examination, the successful passage of which would qualify the person
for a certificate pursuant to this article. The board shall not
issue a temporary certificate for a duration that exceeds one year,
unless the person has been duly elected or appointed to the office of
assessor. The board shall not renew a temporary certificate.
   678.  The board may issue an interim certificate to a person who
is currently employed by the state, a county, or a city and county,
and who is making change in ownership or exemption decisions in order
to afford that person the opportunity to apply for and take an
examination, the successful passage of which would qualify the person
for a certificate pursuant to this article. The board shall not
issue an interim certificate for a duration that exceeds four years,
unless the person has been duly elected or appointed to the office of
assessor. The board shall not renew an interim certificate.
   679.  This article shall not be construed to impede an assessor
from managing his or her staff resources efficiently, and in a manner
that allows noncertificated staff to prepare and work with exemption
applications and change in ownership documents, provided that the
noncertificated staff are not responsible for making exemption or
change in ownership decisions.