Governor Edmund Brown Jr. recently signed two California Chamber of Commerce-supported bills that improve fairness in the tax law administration process.
- AB 2201 (Brough R-Dana Point) maintains fairness with regard to the computation of interest on a late electronic payment to the Board of Equalization (BOE) by reinstating the authority of the BOE to compute interest on a daily basis instead of a monthly basis if listed circumstances are satisfied.
- AB 2476 (Daly; D-Anaheim) ensures that a property owner has sufficient time to potentially challenge the parcel tax if necessary by providing notice and information of a parcel tax to a property owner who does not reside within the jurisdiction of the agency or legislative body.
AB 2201: Tax Administration
Until January 1, 2016, the BOE had the discretion to modify the interest assessed on a late electronic payment to a daily rate instead of a monthly rate. The BOE was allowed to modify this assessment if it determined that the assessment of one month of interest was inequitable as the taxpayer satisfied the following factors:
- the payment was only one day late;
- the taxpayer was granted relief from all penalties; and
- the taxpayer filed for an oral hearing with the BOE.
On January 2, 2016, the discretion of the BOE to modify the interest assessed to avoid an “inequitable” result expired. AB 2201 corrects this by allowing the BOE to utilize its discretion to determine if assessing one month of interest on an electronic payment that is one day late is inequitable.
AB 2476: Parcel Tax Notice
AB 2476 requires a local agency to provide notice to property owners that do not reside within the jurisdiction of a taxing agency, of its vote to place a parcel tax on the ballot as well as information regarding the parcel tax.
Timely notice of a proposed parcel tax to affected property owners is important so that the property owners may voice their concern, inquire into the amount or purpose of the parcel tax, or even prepare for the potential tax increase. AB 2476 requires notice and provides necessary information to the property owner so the owner may take action, if desired.
Staff Contact: Jennifer Barrera