Revenue and Taxation Code — Part 15 | RTC — United States — California law | Esheria

Revenue and Taxation Code

Part 15 of 36 · provisions 2,801–3,000

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Starting in the 1995–96 fiscal year, county-assessed property rights or interests must be placed in a separate countywide tax rate area, and the tax rate is calculated using the rates from Section 100. This section suspends a specified California constitutional subparagraph for the 2009–10 fiscal year. This section requires the county auditor to reduce certain 2009–10 property tax apportionments, transfer the reduction amounts to a county fund, and report the calculations. It also lets the Director of Finance grant limited hardship relief, requires later state reimbursement, and allows mandamus if reimbursement is not made on time. This section sets how certain railroad property tax value and revenues must be allocated among tax rate areas, counties, school entities, and related jurisdictions. Supplemental property tax revenues for 1985–86 and later years must be apportioned using the current year’s property tax apportionment factors.

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Provisions of Revenue and Taxation Code

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  1. 24949.2.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 15. Gain or Loss on Disposition of Property [24901 - 24998] ( Chapter 15 added by Stats. 1955, Ch. 938. ) ## ARTICLE 3. Nontaxable Exchanges [24941 - 24956] ( Article 3 added by Stats. 1955, Ch. 938. )

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    This section lets a taxpayer treat certain outdoor advertising display property as real property for this tax part, with Franchise Tax Board-controlled timing and revocation consent, and it sets special like-kind exchange rules for certain involuntary conversions of real property.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 15. Gain or Loss on Disposition of Property [24901 - 24998] ( Chapter 15 added by Stats. 1955, Ch. 938. ) ## ARTICLE 3. Nontaxable Exchanges [24941 - 24956] ( Article 3 added by Stats. 1955, Ch. 938. ) ## 24949.2. (a) For purposes of Sections 24943 through 24945, if real property (not including stock in trade or other property held primarily for sale) held for productive use in trade or business or for investment is (as a result of its seizure, requisition, or condemnation, or threat or imminence thereof) compulsorily or involuntarily converted, property of a like kind to be held either for productive use in trade or business or for investment shall be treated as property similar or related in service or use to the property so converted. (b) (1) Subdivision (a) shall not apply to the purchase of stock in the acquisition of control of a corporation described in subdivision (a) of Section 24944. (2) Subdivision (a) shall apply with respect to the compulsory or involuntary conversion of any real property only if the disposition of the converted property (within the meaning of subdivision (b) of Section 24943) occurs after December 31, 1960. (c) (1) A taxpayer may elect, at such time and in such manner as the Franchise Tax Board may prescribe, to treat property which constitutes an outdoor advertising display as real property for purposes of this part with respect to which an election under Section 24356.2 (relating to election to expense certain depreciable business assets) is in effect. (2) An election made under paragraph (1) may not be revoked without the consent of the Franchise Tax Board. (3) For purposes of this subdivision, the term “outdoor advertising display” means a rigidly assembled sign, display, or device permanently affixed to the ground or permanently attached to a building or other inherently permanent structure constituting, or used for the display of, a commercial or other advertisement to the public. (4) For purposes of this subdivision, an interest in real property purchased as replacement property for a compulsorily or involuntarily converted outdoor advertising display defined in paragraph (3) (and treated by the taxpayer as real property) shall be considered property of a like kind as the property converted without regard to whether the taxpayer’s interest in the replacement property is the same kind of interest the taxpayer held in the converted property. (d) In the case of a compulsory or involuntary conversion described in subdivision (a), paragraph (1) of subdivision (b) of Section 24944 shall be applied by substituting “three years” for “two years.” (e) Subdivision (d) shall apply with respect to any disposition of converted property (within the meaning of Section 24944) after December 31, 1976. (Amended by Stats. 1984, Ch. 45, Sec. 16. Effective March 20, 1984.)
  2. 24949.3.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 15. Gain or Loss on Disposition of Property [24901 - 24998] ( Chapter 15 added by Stats. 1955, Ch. 938. ) ## ARTICLE 3. Nontaxable Exchanges [24941 - 24956] ( Article 3 added by Stats. 1955, Ch. 938. )

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    If a taxpayer cannot feasibly reinvest proceeds from converted livestock because of specified weather or contamination conditions, other farming property is treated as similar property.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 15. Gain or Loss on Disposition of Property [24901 - 24998] ( Chapter 15 added by Stats. 1955, Ch. 938. ) ## ARTICLE 3. Nontaxable Exchanges [24941 - 24956] ( Article 3 added by Stats. 1955, Ch. 938. ) ## 24949.3. For purposes of Sections 24943 through 24946, if, because of drought, flood, other weather-related conditions, or soil contamination or other environmental contamination, it is not feasible for the taxpayer to reinvest the proceeds from compulsorily or involuntarily converted livestock in property similar or related in use to the livestock so converted, other property (including real property in the case of soil contamination or other environmental contamination) used for farming purposes shall be treated as property similar or related in service or use to the livestock so converted. (Amended by Stats. 2005, Ch. 691, Sec. 75. Effective October 7, 2005.)
  3. 24949.5.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 15. Gain or Loss on Disposition of Property [24901 - 24998] ( Chapter 15 added by Stats. 1955, Ch. 938. ) ## ARTICLE 3. Nontaxable Exchanges [24941 - 24956] ( Article 3 added by Stats. 1955, Ch. 938. )

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    For certain nontaxable exchange provisions, specified Internal Revenue Code Section 1033 rules apply, unless another rule in this provision says otherwise.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 15. Gain or Loss on Disposition of Property [24901 - 24998] ( Chapter 15 added by Stats. 1955, Ch. 938. ) ## ARTICLE 3. Nontaxable Exchanges [24941 - 24956] ( Article 3 added by Stats. 1955, Ch. 938. ) ## 24949.5. (a) For purposes of Sections 24943 through 24946, Section 1033(h) of the Internal Revenue Code, relating to special rules for property damaged by federally declared disasters, shall apply, except as otherwise provided. (b) For purposes of Sections 24943 through 24946, Section 1033(i) of the Internal Revenue Code, relating to replacement property must be acquired from unrelated person in certain cases, shall apply, except as otherwise provided. (c) For purposes of Sections 24943 through 24946, Section 1033(j) of the Internal Revenue Code, relating to sales or exchanges to implement microwave relocation policy, shall apply, except as otherwise provided. (d) For purposes of Sections 24943 to 24946, inclusive, Section 1033(k) of the Internal Revenue Code, relating to sales or exchanges under certain hazard mitigation programs, shall apply, except as otherwise provided. (Amended by Stats. 2010, Ch. 14, Sec. 78. (SB 401) Effective January 1, 2011.)
  4. 24950.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 15. Gain or Loss on Disposition of Property [24901 - 24998] ( Chapter 15 added by Stats. 1955, Ch. 938. ) ## ARTICLE 3. Nontaxable Exchanges [24941 - 24956] ( Article 3 added by Stats. 1955, Ch. 938. )

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    Section 1035 of the Internal Revenue Code applies to certain exchanges of insurance policies, except as otherwise provided.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 15. Gain or Loss on Disposition of Property [24901 - 24998] ( Chapter 15 added by Stats. 1955, Ch. 938. ) ## ARTICLE 3. Nontaxable Exchanges [24941 - 24956] ( Article 3 added by Stats. 1955, Ch. 938. ) ## 24950. Section 1035 of the Internal Revenue Code, relating to certain exchanges of insurance policies, shall apply, except as otherwise provided. (Amended by Stats. 1993, Ch. 877, Sec. 82. Effective October 6, 1993.)
  5. 24950.5.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 15. Gain or Loss on Disposition of Property [24901 - 24998] ( Chapter 15 added by Stats. 1955, Ch. 938. ) ## ARTICLE 3. Nontaxable Exchanges [24941 - 24956] ( Article 3 added by Stats. 1955, Ch. 938. )

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    The specified federal amendments to Internal Revenue Code Section 1035 do not apply here.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 15. Gain or Loss on Disposition of Property [24901 - 24998] ( Chapter 15 added by Stats. 1955, Ch. 938. ) ## ARTICLE 3. Nontaxable Exchanges [24941 - 24956] ( Article 3 added by Stats. 1955, Ch. 938. ) ## 24950.5. The amendments made by Section 844 of the Pension Protection Act of 2006 (Public Law 109-280) to Section 1035 of the Internal Revenue Code shall not apply. (Added by Stats. 2010, Ch. 14, Sec. 79. (SB 401) Effective January 1, 2011.)
  6. 24951.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 15. Gain or Loss on Disposition of Property [24901 - 24998] ( Chapter 15 added by Stats. 1955, Ch. 938. ) ## ARTICLE 3. Nontaxable Exchanges [24941 - 24956] ( Article 3 added by Stats. 1955, Ch. 938. )

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    Section 1036 of the Internal Revenue Code applies here, except as otherwise provided.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 15. Gain or Loss on Disposition of Property [24901 - 24998] ( Chapter 15 added by Stats. 1955, Ch. 938. ) ## ARTICLE 3. Nontaxable Exchanges [24941 - 24956] ( Article 3 added by Stats. 1955, Ch. 938. ) ## 24951. Section 1036 of the Internal Revenue Code, relating to stock for stock of same corporation, shall apply, except as otherwise provided. (Amended by Stats. 1993, Ch. 877, Sec. 83. Effective October 6, 1993.)
  7. 24952.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 15. Gain or Loss on Disposition of Property [24901 - 24998] ( Chapter 15 added by Stats. 1955, Ch. 938. ) ## ARTICLE 3. Nontaxable Exchanges [24941 - 24956] ( Article 3 added by Stats. 1955, Ch. 938. )

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    If a seller takes back real property securing a debt, the reacquisition generally produces no gain or loss, except where subdivisions (b) and (d) apply.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 15. Gain or Loss on Disposition of Property [24901 - 24998] ( Chapter 15 added by Stats. 1955, Ch. 938. ) ## ARTICLE 3. Nontaxable Exchanges [24941 - 24956] ( Article 3 added by Stats. 1955, Ch. 938. ) ## 24952. (a) If— (1) A sale of real property gives rise to indebtedness to the seller which is secured by the real property sold, and (2) The seller of such property reacquires such property in partial or full satisfaction of such indebtedness, then, except as provided in subdivisions (b) and (d), no gain or loss shall result to the seller from such reacquisition, and no debt shall become worthless or partially worthless as a result of such reacquisition. (b) (1) In the case of a reacquisition of real property to which subdivision (a) applies, gain shall result from such reacquisition to the extent that— (A) The amount of money and the fair market value of other property (other than obligations of the purchaser) received, prior to such reacquisition, with respect to the sale of such property, exceeds (B) The amount of the gain on the sale of such property included in the measure of tax or returned as income for periods prior to such reacquisition. (2) The amount of gain determined under paragraph (1) resulting from a reacquisition during any taxable year beginning after December 31, 1964, shall not exceed the amount by which the price at which the real property was sold exceeded its adjusted basis, reduced by the sum of— (A) The amount of the gain on the sale of such property included in the measure of tax or returned as income for periods prior to the reacquisition of such property, and (B) The amount of money and the fair market value of other property (other than obligations of the purchaser received with respect to the sale of such property) paid or transferred by the seller in connection with the reacquisition of such property. For purposes of this paragraph, the price at which real property is sold is the gross sales price reduced by the selling commissions, legal fees, and other expenses incident to the sale of such property which are properly taken into account in determining gain or loss on such sale. (3) Except as provided in this section, the gain determined under this subdivision resulting from a reacquisition to which subdivision (a) applies shall be recognized, notwithstanding any other provision of this part. (c) If subdivision (a) applies to the reacquisition of any real property, the basis of such property upon such reacquisition shall be the adjusted basis of the indebtedness to the seller secured by such property (determined as of the date of reacquisition), increased by the sum of— (1) The amount of the gain determined under subdivision (b) resulting from such reacquisition, and (2) The amount described in subparagraph (B) of paragraph (2) of subdivision (b). If any indebtedness to the seller secured by such property is not discharged upon the reacquisition of such property, the basis of such indebtedness shall be zero. (d) If, prior to a reacquisition of real property to which subdivision (a) applies, the seller has treated indebtedness secured by such property as having become worthless or partially worthless— (1) Such seller shall be considered as receiving, upon the reacquisition of such property, an amount equal to the amount of such indebtedness treated by him as having become worthless, and (2) The adjusted basis of such indebtedness shall be increased (as of the date of reacquisition) by an amount equal to the amount so considered as received by such seller. (Amended by Stats. 2000, Ch. 862, Sec. 207. Effective January 1, 2001.)
  8. 24953.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 15. Gain or Loss on Disposition of Property [24901 - 24998] ( Chapter 15 added by Stats. 1955, Ch. 938. ) ## ARTICLE 3. Nontaxable Exchanges [24941 - 24956] ( Article 3 added by Stats. 1955, Ch. 938. )

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    A taxpayer must file an information return with the Franchise Tax Board for certain nonrecognized property exchanges when the acquired property is outside California.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 15. Gain or Loss on Disposition of Property [24901 - 24998] ( Chapter 15 added by Stats. 1955, Ch. 938. ) ## ARTICLE 3. Nontaxable Exchanges [24941 - 24956] ( Article 3 added by Stats. 1955, Ch. 938. ) ## 24953. (a) If gain or loss from the exchange of property in this state of a taxpayer is not recognized under this part because of Section 1031 of the Internal Revenue Code, relating to exchange of property held for productive use or investment, for a taxable year and the property acquired in that exchange is located outside of this state, the taxpayer shall file an information return with the Franchise Tax Board for the taxable year of the exchange and for each subsequent taxable year in which the gain or loss from that exchange has not been recognized, in the form and manner prescribed by the Franchise Tax Board. (b) If a taxpayer fails to file an information return required pursuant to subdivision (a), and fails to file a return required under Part 10.2 (commencing with Section 18401), the Franchise Tax Board may make an estimate of the net income, from any available information, including the amount of gain described in subdivision (a), and may propose to assess the amount of tax, interest, and penalties due in the same manner as Section 19087. (c) Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code shall not apply to any standard, criterion, procedure, determination, rule, notice, or guideline established or issued by the Franchise Tax Board pursuant to this section. (d) This section shall apply to exchanges of property that occur in taxable years beginning on or after January 1, 2014. (Added by Stats. 2013, Ch. 26, Sec. 5. (AB 92) Effective June 27, 2013.)
  9. 24954.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 15. Gain or Loss on Disposition of Property [24901 - 24998] ( Chapter 15 added by Stats. 1955, Ch. 938. ) ## ARTICLE 3. Nontaxable Exchanges [24941 - 24956] ( Article 3 added by Stats. 1955, Ch. 938. )

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    For taxable years beginning on or after January 1, 1995, IRC Section 1042 applies to stock sales to employee stock ownership plans or certain cooperatives, unless otherwise provided.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 15. Gain or Loss on Disposition of Property [24901 - 24998] ( Chapter 15 added by Stats. 1955, Ch. 938. ) ## ARTICLE 3. Nontaxable Exchanges [24941 - 24956] ( Article 3 added by Stats. 1955, Ch. 938. ) ## 24954. For taxable years beginning on or after January 1, 1995, Section 1042 of the Internal Revenue Code, relating to sales of stock to employee stock ownership plans or certain cooperatives, shall apply, except as otherwise provided. (Amended by Stats. 2000, Ch. 862, Sec. 208. Effective January 1, 2001.)
  10. 24954.1.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 15. Gain or Loss on Disposition of Property [24901 - 24998] ( Chapter 15 added by Stats. 1955, Ch. 938. ) ## ARTICLE 3. Nontaxable Exchanges [24941 - 24956] ( Article 3 added by Stats. 1955, Ch. 938. )

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    Section 1042(g) of the Internal Revenue Code does not apply to sales of stock in agricultural refiners and processors to eligible farm cooperatives.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 15. Gain or Loss on Disposition of Property [24901 - 24998] ( Chapter 15 added by Stats. 1955, Ch. 938. ) ## ARTICLE 3. Nontaxable Exchanges [24941 - 24956] ( Article 3 added by Stats. 1955, Ch. 938. ) ## 24954.1. Section 1042(g) of the Internal Revenue Code, relating to application of section to sales of stock in agricultural refiners and processors to eligible farm cooperatives, shall not apply. (Added by Stats. 1998, Ch. 322, Sec. 101. Effective August 20, 1998.)
  11. 24955.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 15. Gain or Loss on Disposition of Property [24901 - 24998] ( Chapter 15 added by Stats. 1955, Ch. 938. ) ## ARTICLE 3. Nontaxable Exchanges [24941 - 24956] ( Article 3 added by Stats. 1955, Ch. 938. )

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    This section says certain sales of assisted housing or condominium units can qualify for no gain recognition if the buyer commits to keep the housing affordable and the sale proceeds are reinvested in California residential property within two years.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 15. Gain or Loss on Disposition of Property [24901 - 24998] ( Chapter 15 added by Stats. 1955, Ch. 938. ) ## ARTICLE 3. Nontaxable Exchanges [24941 - 24956] ( Article 3 added by Stats. 1955, Ch. 938. ) ## 24955. (a) No gain shall be recognized with respect to a sale of an assisted housing development to a tenant association, nonprofit organization, profit-motivated organization or individual, or public agency which obligates itself and any successors in interest to maintain the assisted housing development affordable to persons or families of lower income or very low income for either a period of 30 years from the date of sale or the remaining term of existing federal government assistance as listed in subdivision (a) of Section 65863.10 of the Government Code, whichever is greater, provided that all of the proceeds from the sale are reinvested in residential real property, other than a personal residence, in this state within two years after the sale. This obligation shall be recorded at the time of sale in the office of the county recorder of the county in which the development is located. (b) No gain shall be recognized with respect to a sale of a majority or more of units in an assisted housing development converted to condominium interests, to a tenant association, nonprofit organization, profit-motivated organization or individual, or public agency which obligates itself and any successors in interest to maintain the condominiums affordable to persons or families of lower income or very low income for either a period of 30 years from the date of sale or the remaining term of existing federal government assistance as listed in subdivision (a) of Section 65863.10 of the Government Code, provided that all of the proceeds from the sale are reinvested in residential real property, other than a personal residence, in this state within two years after the sale. This obligation shall be recorded at the time of sale in the office of the county recorder of the county in which the development is located. (c) No gain shall be recognized with respect to a sale of real property to a majority or more of existing lower income and very low income residents of that property, provided that all of the proceeds from the sale are reinvested in residential real property, other than a personal residence, in this state within two years after the sale. (d) No gain shall be recognized with respect to a sale of a majority or more of units converted to condominium interests to the existing lower income or very low income residents of that property, provided that all of the proceeds from the sale are reinvested in residential real property, other than a personal residence, in this state within two years after the sale. (e) For purposes of this section: (1) “Assisted housing development” means a multifamily rental housing development that receives federal government assistance, appearing of record and containing a legal description of the property, as defined in subdivision (a) of Section 65863.10 of the Government Code. (2) “Tenant association” means a group of tenants who have formed a nonprofit corporation, cooperative corporation, or other entity or organization; or a local nonprofit, regional, or national organization whose purpose includes the acquisition of an assisted housing development, real property, or condominium and which represents the interests of at least a majority of the tenants in the assisted housing development, real property, or condominium. (3) “Nonprofit organization” means a not-for-profit corporation organized pursuant to Division 2 (commencing with Section 5000) of Title 1 of the Corporations Code, which has as its principal purpose the ownership, development, or management of housing or community development projects for persons and families of lower income and very low income, and which has a broadly representative board, a majority of whose members are community-based and has a proven track record of community service. (4) “Public agency” means a housing authority, redevelopment agency, or any other agency of a city, county, or city and county, whether general law or chartered, which is authorized to own, develop, or manage housing or community development projects for persons and families of lower income and very low income. (5) “Regional or national organization” means a not-for-profit, charitable corporation organized on a multicounty, state, or multistate basis which has as its principal purpose the ownership, development, or management of housing or community development projects for persons and families of lower income and very low income. (6) “Regional or national agency” means a multicounty, state, or multistate agency which is authorized to own, develop, or manage housing or community development projects for persons and families of lower income and very low income. (7) “Profit-motivated organization or individual” means an individual or two or more persons organized pursuant to Division 1 (commencing with Section 100) of Title 1 of, Division 3 (commencing with Section 1200) of Title 1 of, or Division 1 (commencing with Section 15001) of Title 2 of, the Corporations Code, which carries on as a business for profit. (8) “Lower income” means those residents having an income as defined by Section 50079.5 of the Health and Safety Code. (9) “Very low income” means those residents having an income as defined by Section 50105 of the Health and Safety Code. (10) “Resident” means a tenant or other person who lawfully occupies a unit located in a qualified low-income housing project as defined under Section 23610.5, and whose income qualifies as lower income or very low income. (11) “Condominium” means the interest in real property defined in Section 783 of the Civil Code. (f) If the purchase of residential real property results in the nonrecognition of gain on the sale of an assisted housing development, real property, or condominium under subdivision (a), (b), (c), or (d), in determining the adjusted basis of the purchased residential real property as of any time following the sale of the assisted housing development, real property, or condominium, the adjustments to the basis shall include a reduction by an amount equal to the amount of the gain not so recognized on the sale of the assisted housing development, real property, or condominium. If more than one parcel of residential real property has been purchased, the nonrecognized gain from the sale of the assisted housing development, real property, or condominium shall be attributed to the parcels of residential real property on a pro rata basis based upon the purchase prices of those parcels. (g) In accordance with subdivision (a), (b), (c), or (d), if the sale of an assisted housing development, real property, or condominium results in a gain during the taxable year, then all of the following shall apply: (1) The statutory period for the assessment of any deficiency attributable to any part of the gain shall not expire before the expiration of four years from the date the Franchise Tax Board is notified (on the form as the Franchise Tax Board may provide) of one of the following: (A) The cost of purchasing the residential real property which satisfies the requirement of subdivision (a), (b), (c), or (d), and results in the nonrecognition of gain. (B) The intention not to reinvest all of the proceeds from the sale in residential real property within the period specified in subdivision (a), (b), (c), or (d). (C) The failure to reinvest all of the proceeds from the sale in residential real property within the period specified in subdivision (a), (b), (c), or (d). (2) The deficiency may be assessed before the expiration of the period specified in paragraph (1), notwithstanding the provisions of any other law or rule of law which would otherwise prevent the assessment. (3) All information regarding the sale of an assisted housing development, real property, or condominium, at a gain in accordance with subdivision (a), (b), (c), or (d), shall be disclosed in the return for the taxable year in which the sale took place in order to determine if the sale qualifies and the amount of nonrecognition of gain qualifies under subdivision (a), (b), (c), or (d). (h) The Department of Housing and Community Development shall do all of the following: (1) Certify that the lower income or very low income resident meets the definitions provided in paragraphs (8) and (9) of subdivision (e). (2) Provide an annual listing to the Franchise Tax Board, in a form and manner agreed upon by the Franchise Tax Board and the Department of Housing and Community Development, of the names and identification numbers of the persons who are members of the group of purchasers who are lower income or very low income residents that were issued a certification, and the names and identification numbers of the sellers of the property. (3) Provide the group of purchasers who are lower income or very low income residents a copy of the certification. (i) The group of purchasers who are lower income or very low income residents shall do all of the following: (1) Provide the Department of Housing and Community Development with documents, as deemed necessary by the department, verifying the income of each member of the group. (2) Provide a copy of the certification to the seller of the assisted housing development, real property, or condominium. (3) Retain a copy of the certification. (j) The seller of the assisted housing development, real property, or condominium shall do all of the following: (1) Obtain a copy of the certification from the group of purchasers who are lower income or very low income residents of the assisted housing development, real property, or condominium. (2) Retain a copy of the group’s lower income or very low income certification for tax purposes. (Amended by Stats. 2000, Ch. 862, Sec. 209. Effective January 1, 2001.)
  12. 24956.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 15. Gain or Loss on Disposition of Property [24901 - 24998] ( Chapter 15 added by Stats. 1955, Ch. 938. ) ## ARTICLE 3. Nontaxable Exchanges [24941 - 24956] ( Article 3 added by Stats. 1955, Ch. 938. )

    Verify source ↗

    California adopts IRC section 1044 for this provision, but it does not apply in taxable years when the federal rule (or a similar rule) is unavailable for federal income tax purposes.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 15. Gain or Loss on Disposition of Property [24901 - 24998] ( Chapter 15 added by Stats. 1955, Ch. 938. ) ## ARTICLE 3. Nontaxable Exchanges [24941 - 24956] ( Article 3 added by Stats. 1955, Ch. 938. ) ## 24956. (a) Section 1044 of the Internal Revenue Code, relating to rollover of publicly traded securities gain into specialized small business investment companies, shall apply, except as otherwise provided. (b) The provisions of Section 1044 of the Internal Revenue Code, relating to rollover of publicly traded securities gain into specialized small business investment companies, shall not apply to any taxable year (or portion thereof) that those provisions (or similar provisions) are not applicable for federal income tax purposes. (Amended by Stats. 2000, Ch. 862, Sec. 210. Effective January 1, 2001.)
  13. 24961.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 15. Gain or Loss on Disposition of Property [24901 - 24998] ( Chapter 15 added by Stats. 1955, Ch. 938. ) ## ARTICLE 4. Special Rules for Basis [24961 - 24966.2] ( Article 4 added by Stats. 1955, Ch. 938. )

    Verify source ↗

    Corporations must determine the basis of certain property under prescribed regulations, including special rules for affiliated corporations and consolidated returns.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 15. Gain or Loss on Disposition of Property [24901 - 24998] ( Chapter 15 added by Stats. 1955, Ch. 938. ) ## ARTICLE 4. Special Rules for Basis [24961 - 24966.2] ( Article 4 added by Stats. 1955, Ch. 938. ) ## 24961. In the case of the property acquired by a corporation, during a period of affiliation, from a corporation with which it was affiliated, the basis of such property, after such period of affiliation, shall be determined, in accordance with regulations prescribed by the Franchise Tax Board without regard to intercompany transactions in respect of which gain or loss was not recognized. The basis in case of property acquired by a corporation during any period, in the income year 1929 or any subsequent income year, in respect of which a consolidated return is made by such corporation under Article 9 of Chapter 2 or Section 141 of the Federal Revenue Act of 1928 or the Federal Revenue Act of 1932 or the Federal Revenue Act of 1934 or the Federal Revenue Act of 1936, or in the case of a corporation subject to the tax imposed by Chapter 3, the Federal Revenue Act of 1938, shall be determined in accordance with regulations prescribed under Article 9 of Chapter 2 or Section 141 of the Federal Revenue Act of 1928 or the Federal Revenue Act of 1932 or the Federal Revenue Act of 1936, or in the case of a corporation subject to the tax imposed by Chapter 3, the Federal Revenue Act of 1938. The basis in the case of property held by a corporation during any period, in the income year 1929 or any subsequent income year, in respect of which a consolidated return is made by such corporation under Article 9 of Chapter 2 or Section 141 of the Federal Revenue Act of 1928 or the Federal Revenue Act of 1932 or the Federal Revenue Act of 1934 or the Federal Revenue Act of 1936, or, in the case of a corporation subject to the tax imposed by Chapter 3, or the Federal Revenue Act of 1938, shall be adjusted in respect of any items relating to such period, in accordance with regulations prescribed under Article 9 of Chapter 2 or Section 141 of the Federal Revenue Act of 1928 or the Federal Revenue Act of 1932 or the Federal Revenue Act of 1934 or the Federal Revenue Act of 1936, or in the case of a corporation subject to the tax imposed by Chapter 3, or the Federal Revenue Act of 1938, applicable to such period. (Amended by Stats. 1957, Ch. 544.)
  14. 24962.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 15. Gain or Loss on Disposition of Property [24901 - 24998] ( Chapter 15 added by Stats. 1955, Ch. 938. ) ## ARTICLE 4. Special Rules for Basis [24961 - 24966.2] ( Article 4 added by Stats. 1955, Ch. 938. )

    Verify source ↗

    This section sets the basis for certain property and stock rights by tying it to earlier tax laws in specified date ranges.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 15. Gain or Loss on Disposition of Property [24901 - 24998] ( Chapter 15 added by Stats. 1955, Ch. 938. ) ## ARTICLE 4. Special Rules for Basis [24961 - 24966.2] ( Article 4 added by Stats. 1955, Ch. 938. ) ## 24962. (a) If the property was acquired, after February 28, 1913, in any income year beginning before January 1, 1934, and the basis thereof, for purposes of the Revenue Act of 1932 was prescribed by Section 113(a) (6), (7), or (9) of such act (47 Stat. 199), then for purposes of this part the basis shall be the same as the basis therein prescribed in the Revenue Act of 1932. (b) If the property was acquired, after February 28, 1913, in any income year beginning before January 1, 1937, and the basis thereof, for purposes of the Revenue Act of 1934, was prescribed by Section 113(a) (6), (7), or (8) of such act (48 Stat. 706), then for purposes of this part the basis shall be the same as the basis therein prescribed in the Revenue Act of 1934. (c) If the property was acquired after February 28, 1913, in a transaction to which the Bank and Corporation Tax Law of 1954 applied, and the basis thereof, for purposes of the Bank and Corporation Tax Law of 1954, was prescribed by Section 25071(d), 25071(e), or 25071(f) of such law, then for purposes of this part the basis shall be the same as the basis therein prescribed in the Bank and Corporation Tax Law of 1954. (d) Stock rights acquired after February 28, 1913, and before January 1, 1955, shall have the basis assigned to such property under Section 25071m of the Bank and Corporation Tax Law of 1954. (Amended by Stats. 1957, Ch. 544.)
  15. 24963.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 15. Gain or Loss on Disposition of Property [24901 - 24998] ( Chapter 15 added by Stats. 1955, Ch. 938. ) ## ARTICLE 4. Special Rules for Basis [24961 - 24966.2] ( Article 4 added by Stats. 1955, Ch. 938. )

    Verify source ↗

    For property acquired before March 1, 1913, if the adjusted basis is less than the property’s fair market value on that date, the basis for determining gain is that fair market value.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 15. Gain or Loss on Disposition of Property [24901 - 24998] ( Chapter 15 added by Stats. 1955, Ch. 938. ) ## ARTICLE 4. Special Rules for Basis [24961 - 24966.2] ( Article 4 added by Stats. 1955, Ch. 938. ) ## 24963. In the case of property acquired before March 1, 1913, if the basis otherwise determined under this part, adjusted (for the period before March 1, 1913) as provided in Section 24916, is less than the fair market value of the property as of March 1, 1913, then the basis for determining gain shall be such fair market value. In determining the fair market value of stock in a corporation as of March 1, 1913, due regard shall be given to the fair market value of the assets of the corporation as of that date. (Added by Stats. 1955, Ch. 938.)
  16. 24964.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 15. Gain or Loss on Disposition of Property [24901 - 24998] ( Chapter 15 added by Stats. 1955, Ch. 938. ) ## ARTICLE 4. Special Rules for Basis [24961 - 24966.2] ( Article 4 added by Stats. 1955, Ch. 938. )

    Verify source ↗

    If a taxpayer receives all or substantially all of a business or property and a gain or loss from that receipt was not already counted for tax, the acquired property or business keeps the transferor’s basis.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 15. Gain or Loss on Disposition of Property [24901 - 24998] ( Chapter 15 added by Stats. 1955, Ch. 938. ) ## ARTICLE 4. Special Rules for Basis [24961 - 24966.2] ( Article 4 added by Stats. 1955, Ch. 938. ) ## 24964. Whenever a taxpayer has realized gain or loss upon the receipt after January 1, 1928, at a time when it was subject to a tax under this part, of all or substantially all of the business or property of a taxpayer over which it exercised control within the meaning of Section 24564, and such gain or loss actually was not taken into account in the computation of taxes imposed by this part, the basis of the property or business acquired shall be the same as it was in the hands of the transferor. (Added by Stats. 1955, Ch. 938.)
  17. 24965.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 15. Gain or Loss on Disposition of Property [24901 - 24998] ( Chapter 15 added by Stats. 1955, Ch. 938. ) ## ARTICLE 4. Special Rules for Basis [24961 - 24966.2] ( Article 4 added by Stats. 1955, Ch. 938. )

    Verify source ↗

    For certain FNMA stock shares, the initial holder’s basis equals the share’s capital contributions, minus any amount treated as ordinary and necessary business expenses under Section 24343(d).

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 15. Gain or Loss on Disposition of Property [24901 - 24998] ( Chapter 15 added by Stats. 1955, Ch. 938. ) ## ARTICLE 4. Special Rules for Basis [24961 - 24966.2] ( Article 4 added by Stats. 1955, Ch. 938. ) ## 24965. In the case of a share of stock issued pursuant to Section 303(c) of the Federal National Mortgage Association Charter Act (12 U.S.C., Sec. 1718), the basis of such share in the hands of the initial holder shall be an amount equal to the capital contributions evidenced by such share reduced by the amount (if any) required by Section 24343(d) to be treated (with respect to such share) as ordinary and necessary expenses paid or incurred in carrying on a trade or business. (Added by Stats. 1961, Ch. 846.)
  18. 24966.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 15. Gain or Loss on Disposition of Property [24901 - 24998] ( Chapter 15 added by Stats. 1955, Ch. 938. ) ## ARTICLE 4. Special Rules for Basis [24961 - 24966.2] ( Article 4 added by Stats. 1955, Ch. 938. )

    Verify source ↗

    The basis of purchased stock must be reduced by the nontaxed portion of an extraordinary dividend, unless this section provides otherwise.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 15. Gain or Loss on Disposition of Property [24901 - 24998] ( Chapter 15 added by Stats. 1955, Ch. 938. ) ## ARTICLE 4. Special Rules for Basis [24961 - 24966.2] ( Article 4 added by Stats. 1955, Ch. 938. ) ## 24966. (a) The basis in stock purchased shall be reduced by the nontaxed portion of any extraordinary dividend received as provided in Section 1059 of the Internal Revenue Code, except as otherwise provided in this section. (b) The reduction described in Section 1059(b)(2)(B) of the Internal Revenue Code shall be the amount determined under Section 24402. (c) Reference to Section 301 of the Internal Revenue Code shall be reference to Sections 24451 to 24454, inclusive. (d) Reference to Section 301(b)(2) of the Internal Revenue Code shall be reference to subdivision (b) of Section 24452. (e) Reference to Section 301(c)(2) of the Internal Revenue Code shall be reference to subdivision (b) of Section 24453. (Amended by Stats. 1990, Ch. 1349, Sec. 34.3. Effective September 26, 1990.)
  19. 24966.1.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 15. Gain or Loss on Disposition of Property [24901 - 24998] ( Chapter 15 added by Stats. 1955, Ch. 938. ) ## ARTICLE 4. Special Rules for Basis [24961 - 24966.2] ( Article 4 added by Stats. 1955, Ch. 938. )

    Verify source ↗

    Section 1059A of the Internal Revenue Code applies here, except as otherwise provided.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 15. Gain or Loss on Disposition of Property [24901 - 24998] ( Chapter 15 added by Stats. 1955, Ch. 938. ) ## ARTICLE 4. Special Rules for Basis [24961 - 24966.2] ( Article 4 added by Stats. 1955, Ch. 938. ) ## 24966.1. Section 1059A of the Internal Revenue Code, relating to limitation on taxpayer’s basis or inventory cost in property imported from related persons, shall apply, except as otherwise provided. (Amended by Stats. 1993, Ch. 877, Sec. 85. Effective October 6, 1993.)
  20. 24966.2.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 15. Gain or Loss on Disposition of Property [24901 - 24998] ( Chapter 15 added by Stats. 1955, Ch. 938. ) ## ARTICLE 4. Special Rules for Basis [24961 - 24966.2] ( Article 4 added by Stats. 1955, Ch. 938. )

    Verify source ↗

    Section 1060 of the Internal Revenue Code applies here for special allocation rules for certain asset acquisitions, unless another rule says otherwise.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 15. Gain or Loss on Disposition of Property [24901 - 24998] ( Chapter 15 added by Stats. 1955, Ch. 938. ) ## ARTICLE 4. Special Rules for Basis [24961 - 24966.2] ( Article 4 added by Stats. 1955, Ch. 938. ) ## 24966.2. Section 1060 of the Internal Revenue Code, relating to special allocation rules for certain asset acquisitions, shall apply, except as otherwise provided. (Amended by Stats. 1993, Ch. 877, Sec. 86. Effective October 6, 1993.)
  21. 24990.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 15. Gain or Loss on Disposition of Property [24901 - 24998] ( Chapter 15 added by Stats. 1955, Ch. 938. ) ## ARTICLE 4.5. Capital Gains and Losses [24990 - 24995] ( Heading of Article 4.5 amended by Stats. 1988, Ch. 1465, Sec. 53. )

    Verify source ↗

    This section says Subchapter P of the Internal Revenue Code applies to capital gains and losses, unless another provision says otherwise.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 15. Gain or Loss on Disposition of Property [24901 - 24998] ( Chapter 15 added by Stats. 1955, Ch. 938. ) ## ARTICLE 4.5. Capital Gains and Losses [24990 - 24995] ( Heading of Article 4.5 amended by Stats. 1988, Ch. 1465, Sec. 53. ) ## 24990. Subchapter P of Chapter 1 of Subtitle A of the Internal Revenue Code, relating to capital gains and losses, shall apply, except as otherwise provided. (Amended by Stats. 1993, Ch. 873, Sec. 47. Effective October 6, 1993.)
  22. 24990.1.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 15. Gain or Loss on Disposition of Property [24901 - 24998] ( Chapter 15 added by Stats. 1955, Ch. 938. ) ## ARTICLE 4.5. Capital Gains and Losses [24990 - 24995] ( Heading of Article 4.5 amended by Stats. 1988, Ch. 1465, Sec. 53. )

    Verify source ↗

    This section says certain federal amendments do not apply here.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 15. Gain or Loss on Disposition of Property [24901 - 24998] ( Chapter 15 added by Stats. 1955, Ch. 938. ) ## ARTICLE 4.5. Capital Gains and Losses [24990 - 24995] ( Heading of Article 4.5 amended by Stats. 1988, Ch. 1465, Sec. 53. ) ## 24990.1. The amendments made by Section 126(a) of the Consolidated Appropriations Act, 2016 (Public Law 114-113) to Section 1202(a)(4) of the Internal Revenue Code, relating to 100 percent exclusion for stock acquired during certain periods in 2010 and thereafter, shall not apply. (Added by Stats. 2025, Ch. 231, Sec. 117. (SB 711) Effective October 1, 2025.)
  23. 24990.2.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 15. Gain or Loss on Disposition of Property [24901 - 24998] ( Chapter 15 added by Stats. 1955, Ch. 938. ) ## ARTICLE 4.5. Capital Gains and Losses [24990 - 24995] ( Heading of Article 4.5 amended by Stats. 1988, Ch. 1465, Sec. 53. )

    Verify source ↗

    This section says Section 301 of the Emergency Economic Stabilization Act of 2008 does not apply.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 15. Gain or Loss on Disposition of Property [24901 - 24998] ( Chapter 15 added by Stats. 1955, Ch. 938. ) ## ARTICLE 4.5. Capital Gains and Losses [24990 - 24995] ( Heading of Article 4.5 amended by Stats. 1988, Ch. 1465, Sec. 53. ) ## 24990.2. Section 301 of Title III of Division A of the Emergency Economic Stabilization Act of 2008 (Public Law 110-343), relating to gain or loss from sale of certain preferred stock, shall not apply. (Added by Stats. 2010, Ch. 14, Sec. 82. (SB 401) Effective January 1, 2011.)
  24. 24990.4.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 15. Gain or Loss on Disposition of Property [24901 - 24998] ( Chapter 15 added by Stats. 1955, Ch. 938. ) ## ARTICLE 4.5. Capital Gains and Losses [24990 - 24995] ( Heading of Article 4.5 amended by Stats. 1988, Ch. 1465, Sec. 53. )

    Verify source ↗

    For taxable years beginning on or after January 1, 1997, this section changes how certain federal real-property subdivision rules apply for California tax purposes.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 15. Gain or Loss on Disposition of Property [24901 - 24998] ( Chapter 15 added by Stats. 1955, Ch. 938. ) ## ARTICLE 4.5. Capital Gains and Losses [24990 - 24995] ( Heading of Article 4.5 amended by Stats. 1988, Ch. 1465, Sec. 53. ) ## 24990.4. For taxable years beginning on or after January 1, 1997: (a) Section 1237(a) of the Internal Revenue Code, relating to real property subdivided for sale, is modified to provide that the term “other than a corporation” in the material preceding Section 1237(a)(1) of the Internal Revenue Code shall instead mean “other than a C corporation.” (b) Section 1237(a)(2)(A) of the Internal Revenue Code, relating to real property subdivided for sale, is modified to provide that an improvement shall be deemed to be made by the taxpayer if that improvement was made by an “S corporation” that included the taxpayer as a shareholder. (Amended by Stats. 2000, Ch. 862, Sec. 211. Effective January 1, 2001.)
  25. 24990.5.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 15. Gain or Loss on Disposition of Property [24901 - 24998] ( Chapter 15 added by Stats. 1955, Ch. 938. ) ## ARTICLE 4.5. Capital Gains and Losses [24990 - 24995] ( Heading of Article 4.5 amended by Stats. 1988, Ch. 1465, Sec. 53. )

    Verify source ↗

    This section says certain Internal Revenue Code capital loss carryback and carryover rules do not apply.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 15. Gain or Loss on Disposition of Property [24901 - 24998] ( Chapter 15 added by Stats. 1955, Ch. 938. ) ## ARTICLE 4.5. Capital Gains and Losses [24990 - 24995] ( Heading of Article 4.5 amended by Stats. 1988, Ch. 1465, Sec. 53. ) ## 24990.5. The provisions of Section 1212 of the Internal Revenue Code, relating to capital loss carrybacks and carryovers, are modified as follows: (a) Section 1212(a)(1)(A) of the Internal Revenue Code, relating to capital loss carrybacks, shall not apply. (b) Section 1212(a)(4) of the Internal Revenue Code, relating to special rules on carrybacks, shall not apply. (c) Sections 1212(b) and 1212(c) of the Internal Revenue Code, relating to other taxpayers and carryback of losses from Section 1256 contracts to offset prior gains from such contracts, respectively, shall not apply. (Amended by Stats. 2025, Ch. 231, Sec. 118. (SB 711) Effective October 1, 2025. Applicable to taxable years beginning on or after January 1, 2015, as provided in Sec. 41 of Stats. 2015, Ch. 359.)
  26. 24990.6.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 15. Gain or Loss on Disposition of Property [24901 - 24998] ( Chapter 15 added by Stats. 1955, Ch. 938. ) ## ARTICLE 4.5. Capital Gains and Losses [24990 - 24995] ( Heading of Article 4.5 amended by Stats. 1988, Ch. 1465, Sec. 53. )

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    This section modifies how certain Internal Revenue Code rules apply to California tax provisions and says one rule applies to property dispositions on or after January 1, 2010.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 15. Gain or Loss on Disposition of Property [24901 - 24998] ( Chapter 15 added by Stats. 1955, Ch. 938. ) ## ARTICLE 4.5. Capital Gains and Losses [24990 - 24995] ( Heading of Article 4.5 amended by Stats. 1988, Ch. 1465, Sec. 53. ) ## 24990.6. (a) Section 1245(a)(2)(C) of the Internal Revenue Code, relating to certain deductions treated as amortization, is modified to also refer to Sections 24356.2, 24356.3, and 24356.4. (b) Section 1245(b)(8) of the Internal Revenue Code, relating to disposition of amortizable Section 197 intangibles, shall apply to dispositions of property on or after January 1, 2010. (Amended by Stats. 2010, Ch. 14, Sec. 83. (SB 401) Effective January 1, 2011.)
  27. 24990.7.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 15. Gain or Loss on Disposition of Property [24901 - 24998] ( Chapter 15 added by Stats. 1955, Ch. 938. ) ## ARTICLE 4.5. Capital Gains and Losses [24990 - 24995] ( Heading of Article 4.5 amended by Stats. 1988, Ch. 1465, Sec. 53. )

    Verify source ↗

    Section 1248 of the Internal Revenue Code does not apply to covered transactions after August 20, 1990, for taxable years beginning on or after January 1, 1990.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 15. Gain or Loss on Disposition of Property [24901 - 24998] ( Chapter 15 added by Stats. 1955, Ch. 938. ) ## ARTICLE 4.5. Capital Gains and Losses [24990 - 24995] ( Heading of Article 4.5 amended by Stats. 1988, Ch. 1465, Sec. 53. ) ## 24990.7. The provisions of Section 1248 of the Internal Revenue Code, relating to gain from certain sales or exchanges of stock in certain foreign corporations, shall not apply to transactions occurring after August 20, 1990, in taxable years beginning on or after January 1, 1990. (Amended by Stats. 2000, Ch. 862, Sec. 212. Effective January 1, 2001.)
  28. 24990.8.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 15. Gain or Loss on Disposition of Property [24901 - 24998] ( Chapter 15 added by Stats. 1955, Ch. 938. ) ## ARTICLE 4.5. Capital Gains and Losses [24990 - 24995] ( Heading of Article 4.5 amended by Stats. 1988, Ch. 1465, Sec. 53. )

    Verify source ↗

    For taxable years starting on or after January 1, 2010, certain cross-references to Internal Revenue Code section 1223 are read as references to different subsection ranges.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 15. Gain or Loss on Disposition of Property [24901 - 24998] ( Chapter 15 added by Stats. 1955, Ch. 938. ) ## ARTICLE 4.5. Capital Gains and Losses [24990 - 24995] ( Heading of Article 4.5 amended by Stats. 1988, Ch. 1465, Sec. 53. ) ## 24990.8. For taxable years beginning on or after January 1, 2010, specific reference to Section 1223(4) to (16), inclusive, of the Internal Revenue Code in this part shall instead be treated as a reference to Section 1223(3) to (15), inclusive, of the Internal Revenue Code, respectively. (Added by Stats. 2010, Ch. 14, Sec. 84. (SB 401) Effective January 1, 2011.)
  29. 24990.9.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 15. Gain or Loss on Disposition of Property [24901 - 24998] ( Chapter 15 added by Stats. 1955, Ch. 938. ) ## ARTICLE 4.5. Capital Gains and Losses [24990 - 24995] ( Heading of Article 4.5 amended by Stats. 1988, Ch. 1465, Sec. 53. )

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    This section says the specified federal tax amendments do not apply.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 15. Gain or Loss on Disposition of Property [24901 - 24998] ( Chapter 15 added by Stats. 1955, Ch. 938. ) ## ARTICLE 4.5. Capital Gains and Losses [24990 - 24995] ( Heading of Article 4.5 amended by Stats. 1988, Ch. 1465, Sec. 53. ) ## 24990.9. The amendments made to Sections 1221(a)(3) and 1231(b)(1)(C) of the Internal Revenue Code by Section 13314 of Public Law 115-97, relating to certain self-created property not treated as a capital asset, shall not apply. (Added by Stats. 2025, Ch. 231, Sec. 119. (SB 711) Effective October 1, 2025.)
  30. 24991.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 15. Gain or Loss on Disposition of Property [24901 - 24998] ( Chapter 15 added by Stats. 1955, Ch. 938. ) ## ARTICLE 4.5. Capital Gains and Losses [24990 - 24995] ( Heading of Article 4.5 amended by Stats. 1988, Ch. 1465, Sec. 53. )

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    This section changes the definition of “tax-exempt obligation” for this part.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 15. Gain or Loss on Disposition of Property [24901 - 24998] ( Chapter 15 added by Stats. 1955, Ch. 938. ) ## ARTICLE 4.5. Capital Gains and Losses [24990 - 24995] ( Heading of Article 4.5 amended by Stats. 1988, Ch. 1465, Sec. 53. ) ## 24991. Section 1275(a)(3) of the Internal Revenue Code, relating to the definition of tax-exempt obligation, does not apply but instead the term “tax-exempt obligation” means an obligation the interest on which is exempt from tax under this part. (Amended by Stats. 2003, Ch. 185, Sec. 40. Effective January 1, 2004.)
  31. 24993.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 15. Gain or Loss on Disposition of Property [24901 - 24998] ( Chapter 15 added by Stats. 1955, Ch. 938. ) ## ARTICLE 4.5. Capital Gains and Losses [24990 - 24995] ( Heading of Article 4.5 amended by Stats. 1988, Ch. 1465, Sec. 53. )

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    This section says Internal Revenue Code Section 7872 applies, including the special rule for loans with below-market interest rates, except as otherwise provided.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 15. Gain or Loss on Disposition of Property [24901 - 24998] ( Chapter 15 added by Stats. 1955, Ch. 938. ) ## ARTICLE 4.5. Capital Gains and Losses [24990 - 24995] ( Heading of Article 4.5 amended by Stats. 1988, Ch. 1465, Sec. 53. ) ## 24993. (a) Section 7872 of the Internal Revenue Code, relating to the treatment of loans with below market interest rates, shall apply, except as otherwise provided. (b) Section 7872(h) of the Internal Revenue Code, relating to exception for loans to qualified continuing care facilities, shall apply to calendar years beginning on or after January 1, 2010, with respect to loans made before, on, or after that date. (Amended by Stats. 2010, Ch. 14, Sec. 85. (SB 401) Effective January 1, 2011.)
  32. 24995.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 15. Gain or Loss on Disposition of Property [24901 - 24998] ( Chapter 15 added by Stats. 1955, Ch. 938. ) ## ARTICLE 4.5. Capital Gains and Losses [24990 - 24995] ( Heading of Article 4.5 amended by Stats. 1988, Ch. 1465, Sec. 53. )

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    This section says the specified federal tax provisions on certain passive foreign investment companies do not apply.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 15. Gain or Loss on Disposition of Property [24901 - 24998] ( Chapter 15 added by Stats. 1955, Ch. 938. ) ## ARTICLE 4.5. Capital Gains and Losses [24990 - 24995] ( Heading of Article 4.5 amended by Stats. 1988, Ch. 1465, Sec. 53. ) ## 24995. The provisions of Part VI of Subchapter P of Chapter 1 of Subtitle A of the Internal Revenue Code, relating to treatment of certain passive foreign investment companies, shall not be applicable. (Added by Stats. 1988, Ch. 1465, Sec. 56. Effective September 28, 1988. Applicable to income years beginning on or after January 1, 1988, by Sec. 77 of Ch. 1465.)
  33. 24998.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 15. Gain or Loss on Disposition of Property [24901 - 24998] ( Chapter 15 added by Stats. 1955, Ch. 938. ) ## ARTICLE 5. Wash Sales of Stock or Securities [24998- 24998.] ( Article 5 added by Stats. 1955, Ch. 938. )

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    Sections 1091 and 1092 of the Internal Revenue Code apply for purposes of this part.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 15. Gain or Loss on Disposition of Property [24901 - 24998] ( Chapter 15 added by Stats. 1955, Ch. 938. ) ## ARTICLE 5. Wash Sales of Stock or Securities [24998- 24998.] ( Article 5 added by Stats. 1955, Ch. 938. ) ## 24998. The provisions of Sections 1091 and 1092 of the Internal Revenue Code, relating to loss from wash sales of stock or securities, and straddles, respectively, shall be applicable for purposes of this part. (Repealed and added by Stats. 1988, Ch. 11, Sec. 86. Effective February 19, 1988. Applicable to income years beginning on or after January 1, 1987, by Sec. 95 of Ch. 11.)
  34. 25.

    ## Revenue and Taxation Code - RTC ## GENERAL PROVISIONS ( General Provisions enacted by Stats. 1939, Ch. 154. )

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    A required notice may be given by mail using the manner set out in the Code of Civil Procedure, unless another rule in the code says otherwise.

    ## Revenue and Taxation Code - RTC ## GENERAL PROVISIONS ( General Provisions enacted by Stats. 1939, Ch. 154. ) ## 25. Unless expressly otherwise provided, any notice required to be given to any person by any provision of this code may be given in the manner prescribed in the Code of Civil Procedure for service by mail. (Enacted by Stats. 1939, Ch. 154.)
  35. 2501.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 5. COLLECTION OF TAXES [2501 - 3205] ( Part 5 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Medium of Payment [2501 - 2516] ( Chapter 1 enacted by Stats. 1939, Ch. 154. )

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    Taxes must be paid only in the payment mediums allowed by this chapter.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 5. COLLECTION OF TAXES [2501 - 3205] ( Part 5 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Medium of Payment [2501 - 2516] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## 2501. Taxes shall be paid only in the mediums permitted by this chapter. (Enacted by Stats. 1939, Ch. 154.)
  36. 2502.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 5. COLLECTION OF TAXES [2501 - 3205] ( Part 5 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Medium of Payment [2501 - 2516] ( Chapter 1 enacted by Stats. 1939, Ch. 154. )

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    The tax collector may refuse payment in coins for property taxes, penalties, interest, and related charges.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 5. COLLECTION OF TAXES [2501 - 3205] ( Part 5 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Medium of Payment [2501 - 2516] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## 2502. Taxes may be paid in legal tender or in money receivable in payment of taxes by the United States. The tax collector shall have the right to refuse the payment in coins of property taxes, penalties and interest, and any other charges associated with the payment of property taxes. (Amended by Stats. 1992, Ch. 523, Sec. 10. Effective January 1, 1993.)
  37. 2503.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 5. COLLECTION OF TAXES [2501 - 3205] ( Part 5 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Medium of Payment [2501 - 2516] ( Chapter 1 enacted by Stats. 1939, Ch. 154. )

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    A tax levied for a special purpose must be paid in whatever funds are directed.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 5. COLLECTION OF TAXES [2501 - 3205] ( Part 5 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Medium of Payment [2501 - 2516] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## 2503. A tax levied for a special purpose shall be paid in such funds as may be directed. (Enacted by Stats. 1939, Ch. 154.)
  38. 2503.1.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 5. COLLECTION OF TAXES [2501 - 3205] ( Part 5 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Medium of Payment [2501 - 2516] ( Chapter 1 enacted by Stats. 1939, Ch. 154. )

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    This section defines “electronic funds transfer” for this part of the code.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 5. COLLECTION OF TAXES [2501 - 3205] ( Part 5 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Medium of Payment [2501 - 2516] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## 2503.1. As used in this division, “electronic funds transfer” means any transfer of funds, other than a transaction originated by check, draft, or similar paper instrument, which is initiated through an electronic terminal, telephonic instrument, or computer or magnetic tape so as to order, instruct, or authorize a financial institution to credit or debit an account. (Amended by Stats. 2004, Ch. 194, Sec. 4. Effective January 1, 2005.)
  39. 2503.2.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 5. COLLECTION OF TAXES [2501 - 3205] ( Part 5 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Medium of Payment [2501 - 2516] ( Chapter 1 enacted by Stats. 1939, Ch. 154. )

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    The tax collector may accept electronic funds transfers for certain tax payments and may require them for large taxpayers; taxpayers using EFT must provide requested documentation and pay into the designated bank account.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 5. COLLECTION OF TAXES [2501 - 3205] ( Part 5 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Medium of Payment [2501 - 2516] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## 2503.2. (a) The tax collector for any city, county, or city and county may, in his or her discretion, accept electronic funds transfers in payment for a purchase at a tax sale, of any tax, assessment, or on a redemption. (b) The tax collector for any city, county, or city and county may, in his or her discretion, require any taxpayer, or any paying agent of a taxpayer or taxpayers, who makes an aggregate payment of fifty thousand dollars ($50,000) or more on the two most recent regular installments on the secured roll or on the one installment of the most recent unsecured tax roll, to make subsequent payments by electronic funds transfer. (c) Any taxpayer or paying agent making payment by electronic funds transfer shall provide any supporting documentation and electronic information as requested by the tax collector. An electronic funds transfer made pursuant to this section shall be made to the bank account designated by the tax collector. (d) Any costs incurred by the tax collector as a result of the acceptance of electronic funds transfers pursuant to this section shall be considered administrative costs of tax collection, except that if for any reason the electronic funds transfer is not completed, those costs shall be recovered as provided in subdivision (g). (e) The acceptance of an electronic funds transfer shall constitute payment of a tax, assessment, or redemption as of the date of acceptance when, but not before, the transfer has been completed. An electronic funds transfer is completed by acceptance by the bank designated by the tax collector of the payment specified by the originator’s payment order. (f) If an electronic funds transfer is not accepted for any reason, any record of payment entered on any official record indicating the acceptance of that transfer shall be canceled, and the tax or assessment shall be a lien as if no payment has been attempted. When a cancellation of a record of payment is made, the canceling officer shall record the cancellation on the record that contained the notation of payment, and immediately shall cause a written notice of cancellation to be sent to the person attempting the electronic funds transfer. (g) Upon notice of nonacceptance of an electronic funds transfer, the tax collector may charge the person who attempted the electronic funds transfer a fee not to exceed the costs of processing the transfer, providing notice of nonacceptance to that person, and making required cancellations on the tax roll. The amount of any fee charged pursuant to this subdivision shall be set by the governing body of the relevant city, county, or city and county, and may be added to the tax bill and collected in the same manner as costs recovered pursuant to Section 2621. (Amended by Stats. 2004, Ch. 194, Sec. 5. Effective January 1, 2005.)
  40. 2504.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 5. COLLECTION OF TAXES [2501 - 3205] ( Part 5 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Medium of Payment [2501 - 2516] ( Chapter 1 enacted by Stats. 1939, Ch. 154. )

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    This section defines “negotiable paper” as checks, drafts, and money orders.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 5. COLLECTION OF TAXES [2501 - 3205] ( Part 5 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Medium of Payment [2501 - 2516] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## 2504. As used in this division, “negotiable paper” means checks, drafts, and money orders. (Amended by Stats. 2007, Ch. 340, Sec. 3. Effective January 1, 2008.)
  41. 2505.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 5. COLLECTION OF TAXES [2501 - 3205] ( Part 5 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Medium of Payment [2501 - 2516] ( Chapter 1 enacted by Stats. 1939, Ch. 154. )

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    This section lets some tax officials accept negotiable paper, but requires them to accept certain certificates of eligibility and bars acceptance after specified payment deadlines.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 5. COLLECTION OF TAXES [2501 - 3205] ( Part 5 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Medium of Payment [2501 - 2516] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## 2505. (a) Except as provided in subdivision (b), the tax collector or treasurer for any city or county may in his or her discretion accept negotiable paper in payment of any tax, or assessment, or on a redemption. (b) The tax collector of a county shall accept a certificate of eligibility to pay all or any part of any ad valorem property tax, special assessment, or other charge or user fee appearing on the county tax bill. The tax collector, treasurer, or other official charged with the duty of collecting taxes for a chartered city which levies and collects its own property taxes shall accept a certificate of eligibility to pay all or any part of any ad valorem property tax, special assessment, or other charge or user fee appearing on the tax bill of such city. A certificate for partial payment shall not be accepted unless accompanied by an amount sufficient to fully pay the remaining ad valorem property taxes, special assessment, or other charge or fee appearing on the respective tax bill installment. (c) For the 1978–79 fiscal year and thereafter, except as to those amounts which can be paid by a certificate pursuant to subdivision (c), the tax collector shall not accept a certificate of eligibility to pay all or part of any installment if tendered after the delinquency date thereof, unless accompanied by an amount sufficient to fully pay any delinquent taxes, assessments, costs, penalties, interest, fees or other charges resulting from the delinquency or delinquencies. (d) In no event shall a certificate of eligibility be accepted later than the expiration date designated thereon. (Amended by Stats. 2017, Ch. 387, Sec. 17. (SB 205) Effective January 1, 2018.)
  42. 2506.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 5. COLLECTION OF TAXES [2501 - 3205] ( Part 5 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Medium of Payment [2501 - 2516] ( Chapter 1 enacted by Stats. 1939, Ch. 154. )

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    Accepting negotiable paper counts as payment of a tax, assessment, or redemption on the acceptance date, but only once the paper is duly paid.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 5. COLLECTION OF TAXES [2501 - 3205] ( Part 5 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Medium of Payment [2501 - 2516] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## 2506. The acceptance of negotiable paper constitutes a payment of a tax, assessment, or redemption as of the date of acceptance when, but not before, the negotiable paper is duly paid. (Amended by Stats. 1957, Ch. 155.)
  43. 2507.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 5. COLLECTION OF TAXES [2501 - 3205] ( Part 5 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Medium of Payment [2501 - 2516] ( Chapter 1 enacted by Stats. 1939, Ch. 154. )

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    An officer who accepts negotiable paper may deposit it daily with a bank for collection or, at his option, in the county treasury instead.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 5. COLLECTION OF TAXES [2501 - 3205] ( Part 5 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Medium of Payment [2501 - 2516] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## 2507. The officer accepting negotiable paper may deposit it daily with a bank for collection and receive from the bank cashier’s checks in an amount equal to the total deposits. The cashier’s checks shall be deposited in the county treasury like cash received for the same purpose. The officer accepting negotiable paper may at his option deposit such negotiable paper daily in the county treasury instead of in a bank; and the county treasurer shall handle such negotiable paper like any other negotiable paper accepted by him. (Amended by Stats. 1945, Ch. 1033.)
  44. 2508.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 5. COLLECTION OF TAXES [2501 - 3205] ( Part 5 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Medium of Payment [2501 - 2516] ( Chapter 1 enacted by Stats. 1939, Ch. 154. )

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    If deposited negotiable paper is returned unpaid, the bank must give it back to the depositing officer; if the paper’s amount was included in a cashier’s check, the bank can get a refund.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 5. COLLECTION OF TAXES [2501 - 3205] ( Part 5 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Medium of Payment [2501 - 2516] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## 2508. If any negotiable paper is returned unpaid to the bank with which it was deposited pursuant to any requirement of this division, the bank shall return it to the officer who deposited it and, if its amount has been included in any cashier’s check given by the bank, the bank is entitled to a refund in the amount of the unpaid negotiable paper. Any negotiable paper redeemed by or charged back to the county treasurer by reason of nonpayment shall be returned to the officer who deposited it in exchange for currency or other negotiable paper or for the warrant of the county auditor drawn on the fund into which the original deposit was made. (Amended by Stats. 2005, Ch. 22, Sec. 180. Effective January 1, 2006.)
  45. 2509.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 5. COLLECTION OF TAXES [2501 - 3205] ( Part 5 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Medium of Payment [2501 - 2516] ( Chapter 1 enacted by Stats. 1939, Ch. 154. )

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    If negotiable paper is not paid when presented, the related payment record must be canceled and the tax or assessment remains a lien as if no payment had been attempted.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 5. COLLECTION OF TAXES [2501 - 3205] ( Part 5 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Medium of Payment [2501 - 2516] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## 2509. If any negotiable paper is not paid on due presentment for any reason, any record of payment made on any official record because of its acceptance shall be canceled, and the tax or assessment is a lien as though no payment has been attempted. The officer accepting negotiable paper shall make any memoranda necessary to enable him to make proper cancellation on its return without payment. (Amended by Stats. 1957, Ch. 155.)
  46. 2509.1.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 5. COLLECTION OF TAXES [2501 - 3205] ( Part 5 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Medium of Payment [2501 - 2516] ( Chapter 1 enacted by Stats. 1939, Ch. 154. )

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    After unpaid negotiable paper is returned, the tax collector may charge the payer a fee, capped at the actual processing and notification costs.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 5. COLLECTION OF TAXES [2501 - 3205] ( Part 5 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Medium of Payment [2501 - 2516] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## 2509.1. Notwithstanding any other provision of law, after the return to the depositing county officer of any unpaid negotiable paper, the tax collector may charge the person who attempted payment through the unpaid negotiable paper a fee not to exceed the cost of making required notifications to the person, processing the returned unpaid negotiable paper, and making the required cancellations on the tax roll. The fee amount shall be set by the board of supervisors and be subject to the fee review procedures required by Section 54986 of the Government Code. The fee may be added to the tax bill and collected in the same manner as costs recovered under Section 2621. (Added by Stats. 1990, Ch. 126, Sec. 17. Effective June 11, 1990.)
  47. 251.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 2. ASSESSMENT [201 - 1367] ( Part 2 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Taxation Base [201 - 287] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 2. Procedure to Claim Exemptions [251 - 261] ( Article 2 enacted by Stats. 1939, Ch. 154. )

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    The board must prescribe procedures and forms for property tax exemptions, and a qualified lessor can satisfy those procedures by submitting requested lease information to the assessor within 120 days.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 2. ASSESSMENT [201 - 1367] ( Part 2 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Taxation Base [201 - 287] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 2. Procedure to Claim Exemptions [251 - 261] ( Article 2 enacted by Stats. 1939, Ch. 154. ) ## 251. (a) The board shall prescribe all procedures and forms required to carry into effect any property tax exemption enacted by statute or constitutional amendment. (b) (1) The procedures prescribed pursuant to subdivision (a) shall be deemed satisfied by a qualified lessor by submission to the assessor within 120 days of the commencement date of the lease, or 120 days after the effective date of the act adding this subdivision to this section with respect to any existing lease, whichever is later, information which may be requested by the board with respect to the lease. (2) For purposes of this subdivision, “a qualified lessor” is a lessor under a contract designated as a lease between that lessor and an entity using property which qualifies for the property tax exemption provided for by subdivision (d) or (e) of Section 3 of Article XIII of the California Constitution under which the lessee has the option at the end of the lease term of acquiring the property described in the lease for one dollar ($1), or any other nominal sum. (3) No filing or application for exemption shall thereafter be required by a qualified lessor with respect to that lease unless the option terms of the lease change. (Amended by Stats. 1988, Ch. 1271, Sec. 4. Effective September 26, 1988.)
  48. 2510.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 5. COLLECTION OF TAXES [2501 - 3205] ( Part 5 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Medium of Payment [2501 - 2516] ( Chapter 1 enacted by Stats. 1939, Ch. 154. )

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    If a cancellation is made, the officer must record it in the payment record and immediately notify the person who tried to pay with negotiable paper.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 5. COLLECTION OF TAXES [2501 - 3205] ( Part 5 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Medium of Payment [2501 - 2516] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## 2510. When a cancellation is made, the officer making it shall record it on the record where the notation of payment was made. He shall immediately send a notice to the person who attempted payment by the negotiable paper of the cancellation of the payment. The validity of any tax, assessment, or penalty is not affected by failure or irregularity in giving the notice. (Amended by Stats. 1957, Ch. 155.)
  49. 25101.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 17. Allocation of Income [25101 - 25141] ( Chapter 17 added by Stats. 1955, Ch. 938. ) ## ARTICLE 1. General Provisions [25101 - 25108] ( Heading of Article 1 added by Stats. 1966, Ch. 2. )

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    If a taxpayer has income from inside and outside the state, the tax is measured by the income from sources within the state. If the Franchise Tax Board reapportions net income, it must explain the basis on written request.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 17. Allocation of Income [25101 - 25141] ( Chapter 17 added by Stats. 1955, Ch. 938. ) ## ARTICLE 1. General Provisions [25101 - 25108] ( Heading of Article 1 added by Stats. 1966, Ch. 2. ) ## 25101. When the income of a taxpayer subject to the tax imposed under this part is derived from or attributable to sources both within and without the state the tax shall be measured by the net income derived from or attributable to sources within this state in accordance with the provisions of Article 2 (commencing with Section 25120). However, any method of apportionment shall take into account as income derived from or attributable to sources without the state, income derived from or attributable to transportation by sea or air without the state, whether or not the transportation is located in or subject to the jurisdiction of any other state, the United States or any foreign country. If the Franchise Tax Board reapportions net income upon its examination of any return, it shall, upon the written request of the taxpayer, disclose to it the basis upon which its reapportionment has been made. (Amended by Stats. 1982, Ch. 466, Sec. 104.)
  50. 25101.1.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 17. Allocation of Income [25101 - 25141] ( Chapter 17 added by Stats. 1955, Ch. 938. ) ## ARTICLE 1. General Provisions [25101 - 25108] ( Heading of Article 1 added by Stats. 1966, Ch. 2. )

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    The 1957 amendments to Section 25101 apply only to income years beginning after December 31, 1956.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 17. Allocation of Income [25101 - 25141] ( Chapter 17 added by Stats. 1955, Ch. 938. ) ## ARTICLE 1. General Provisions [25101 - 25108] ( Heading of Article 1 added by Stats. 1966, Ch. 2. ) ## 25101.1. The amendments made at the 1957 Regular Session of the Legislature to Section 25101 of the Revenue and Taxation Code shall be applicable only with respect to income years beginning after December 31, 1956. The determination as to whether income derived from or attributable to transportation by sea or air is allocable to or taxable by California for any income year beginning before January 1, 1957, shall be made as if Section 25101 had not been amended at the 1957 Regular Session of the Legislature and without inferences drawn from the fact that such amendments were not expressly made applicable with respect to income years beginning before January 1, 1957. (Added by Stats. 1957, Ch. 2097.)
  51. 25101.15.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 17. Allocation of Income [25101 - 25141] ( Chapter 17 added by Stats. 1955, Ch. 938. ) ## ARTICLE 1. General Provisions [25101 - 25108] ( Heading of Article 1 added by Stats. 1966, Ch. 2. )

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    Certain taxpayers may determine their business income under Section 25101 when their income is solely from sources within this state and their activities would require a combined report if carried on inside and outside the state.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 17. Allocation of Income [25101 - 25141] ( Chapter 17 added by Stats. 1955, Ch. 938. ) ## ARTICLE 1. General Provisions [25101 - 25108] ( Heading of Article 1 added by Stats. 1966, Ch. 2. ) ## 25101.15. If the income of two or more taxpayers is derived solely from sources within this state and their business activities are such that if conducted within and without this state a combined report would be required to determine their business income derived from sources within this state, then such taxpayers shall be allowed to determine their business income in accordance with Section 25101. (Added by Stats. 1980, Ch. 390, Sec. 1. Effective July 10, 1980. Applicable to income years beginning on or after January 1, 1980, by Sec. 2 of Ch. 390.)
  52. 25101.3.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 17. Allocation of Income [25101 - 25141] ( Chapter 17 added by Stats. 1955, Ch. 938. ) ## ARTICLE 1. General Provisions [25101 - 25108] ( Heading of Article 1 added by Stats. 1966, Ch. 2. )

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    This section tells how to allocate the property factor for aircraft used by certain air carriers and air taxis, using a time-in-state and arrivals/departures formula.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 17. Allocation of Income [25101 - 25141] ( Chapter 17 added by Stats. 1955, Ch. 938. ) ## ARTICLE 1. General Provisions [25101 - 25108] ( Heading of Article 1 added by Stats. 1966, Ch. 2. ) ## 25101.3. The property factor as it relates to the aircraft of an air carrier or foreign air carrier, as defined in Section 1150, or the operator of an air taxi, as defined in Section 1154, shall be allocated on the basis of a formula consisting of time and arrivals and departures as follows: (a) The time in state is the proportionate amount of time, both in the air and on the ground, that certificated aircraft have spent within the state during the taxable year as compared to the total time everywhere during the taxable year. This factor shall be multiplied by 75 percent. (b) Arrivals and departures is the number of arrivals in and departures from airports within the state of certificated aircraft during the taxable year as compared to the total number of arrivals in and departures from airports both within this state and elsewhere during the taxable year. This factor shall be multiplied by 25 percent. (c) The time in state factor shall be added to the arrivals and departures factor. (d) The figure produced by application of subdivision (c) equals the allocation to be applied to the original cost of property owned or rented by the taxpayer determined under the provisions of Section 25130. (e) If annual statistics for the taxpayer’s taxable year are not available, statistics for representative periods designated by the Franchise Tax Board shall be used provided that permission to do so has been granted to the taxpayer by the Franchise Tax Board. (Amended by Stats. 2000, Ch. 862, Sec. 214. Effective January 1, 2001.)
  53. 25102.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 17. Allocation of Income [25101 - 25141] ( Chapter 17 added by Stats. 1955, Ch. 938. ) ## ARTICLE 1. General Provisions [25101 - 25108] ( Heading of Article 1 added by Stats. 1966, Ch. 2. )

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    The Franchise Tax Board may require related persons to file a combined report and may adjust how income or deductions are treated when needed to reflect proper income.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 17. Allocation of Income [25101 - 25141] ( Chapter 17 added by Stats. 1955, Ch. 938. ) ## ARTICLE 1. General Provisions [25101 - 25108] ( Heading of Article 1 added by Stats. 1966, Ch. 2. ) ## 25102. In the case of two or more persons, as defined in Section 19 of this code, owned or controlled directly or indirectly by the same interests, the Franchise Tax Board may permit or require the filing of a combined report and such other information as it deems necessary and is authorized to impose the tax due under this part as though the combined entire net income was that of one person, or to distribute, apportion, or allocate the gross income or deductions between or among such persons, if it determines that such consolidation, distribution, apportionment, or allocation is necessary in order to reflect the proper income of any such persons. (Amended by Stats. 1959, Ch. 273.)
  54. 25103.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 17. Allocation of Income [25101 - 25141] ( Chapter 17 added by Stats. 1955, Ch. 938. ) ## ARTICLE 1. General Provisions [25101 - 25108] ( Heading of Article 1 added by Stats. 1966, Ch. 2. )

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    If a corporation is doing business in the described way, the Franchise Tax Board may require a report, determine the corporation’s allocable net income in California, and compute the tax on that income.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 17. Allocation of Income [25101 - 25141] ( Chapter 17 added by Stats. 1955, Ch. 938. ) ## ARTICLE 1. General Provisions [25101 - 25108] ( Heading of Article 1 added by Stats. 1966, Ch. 2. ) ## 25103. In the case of a corporation doing business within the meaning of this part, whether under agreement or otherwise, in such manner as either directly or indirectly to benefit the members or stockholders of the corporation, or any of them, or any person or persons, directly or indirectly interested in such business, by rendering services of any nature whatsoever, or acquiring or disposing of its products or the goods or commodities in which it deals, at less than a fair price therefore, the Franchise Tax Board, in order to prevent evasion of taxes or clearly to reflect the income of such corporation, may require a report of such facts as it deems necessary, and may determine the amount which shall be deemed to be the entire net income allocable to this State of the business of such corporation for the calendar or fiscal year, and compute the tax upon such net income. In determining the entire net income the Franchise Tax Board shall have regard to the fair profits which, but for any agreement, arrangement, or understanding, might be or could have been obtained from dealing in such products, goods or commodities. (Repealed and added by Stats. 1955, Ch. 938.)
  55. 25104.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 17. Allocation of Income [25101 - 25141] ( Chapter 17 added by Stats. 1955, Ch. 938. ) ## ARTICLE 1. General Provisions [25101 - 25108] ( Heading of Article 1 added by Stats. 1966, Ch. 2. )

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    The Franchise Tax Board may require certain related corporations to file a consolidated report and may assess or adjust tax based on combined net income.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 17. Allocation of Income [25101 - 25141] ( Chapter 17 added by Stats. 1955, Ch. 938. ) ## ARTICLE 1. General Provisions [25101 - 25108] ( Heading of Article 1 added by Stats. 1966, Ch. 2. ) ## 25104. In the case of a corporation liable to report under this part owning or controlling, either directly or indirectly, another corporation, or other corporations, and in the case of a corporation liable to report under this part and owned or controlled, either directly or indirectly, by another corporation, the Franchise Tax Board may require a consolidated report showing the combined net income or such other facts as it deems necessary. The Franchise Tax Board is authorized and empowered, in such manner as it may determine, to assess the tax against either of the corporations whose net income is involved in the report upon the basis of the combined entire net income and such other information as it may possess, or it may adjust the tax in such other manner as it shall determine to be equitable if it determines it to be necessary in order to prevent evasion of taxes or to clearly reflect the net income earned by said corporation or corporations from business done in this State. (Added by Stats. 1955, Ch. 938.)
  56. 25105.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 17. Allocation of Income [25101 - 25141] ( Chapter 17 added by Stats. 1955, Ch. 938. ) ## ARTICLE 1. General Provisions [25101 - 25108] ( Heading of Article 1 added by Stats. 1966, Ch. 2. )

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    This section says corporations can be included in a combined report only if they are in a commonly controlled group, and it defines what counts as common control.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 17. Allocation of Income [25101 - 25141] ( Chapter 17 added by Stats. 1955, Ch. 938. ) ## ARTICLE 1. General Provisions [25101 - 25108] ( Heading of Article 1 added by Stats. 1966, Ch. 2. ) ## 25105. (a) For purposes of this article, other than Section 25102, the income and apportionment factors of two or more corporations shall be included in a combined report only if the corporations, otherwise meeting the requirements of Section 25101 or 25101.15, are members of a commonly controlled group. (b) A “commonly controlled group” means any of the following: (1) A parent corporation and any one or more corporations or chains of corporations, connected through stock ownership (or constructive ownership) with the parent, but only if— (A) The parent owns stock possessing more than 50 percent of the voting power of at least one corporation, and, if applicable, (B) Stock cumulatively representing more than 50 percent of the voting power of each of the corporations, except the parent, is owned by the parent, one or more corporations described in subparagraph (A), or one or more other corporations that satisfy the conditions of this subparagraph. (2) Any two or more corporations, if stock representing more than 50 percent of the voting power of the corporations is owned, or constructively owned, by the same person. (3) Any two or more corporations that constitute stapled entities. (A) For purposes of this paragraph, “stapled entities” means any group of two or more corporations if more than 50 percent of the ownership or beneficial ownership of the stock possessing voting power in each corporation consists of stapled interests. (B) Two or more interests are stapled interests if, by reason of form of ownership restrictions on transfer, or other terms or conditions, in connection with the transfer of one of the interests the other interest or interests are also transferred or required to be transferred. (4) Any two or more corporations, all of whose stock representing more than 50 percent of the voting power of the corporations is cumulatively owned (without regard to the constructive ownership rules of paragraph (1) of subdivision (e)) by, or for the benefit of, members of the same family. Members of the same family are limited to an individual, his or her spouse, parents, brothers or sisters, grandparents, children and grandchildren, and their respective spouses. (c) (1) If, in the application of subdivision (b), a corporation is eligible to be treated as a member of more than one commonly controlled group of corporations, the corporation shall elect to be treated as a member of only one commonly controlled group. This election shall remain in effect unless revoked with the approval of the Franchise Tax Board. (2) Membership in a commonly controlled group shall be treated as terminated in any year, or fraction thereof, in which the conditions of subdivision (b) are not met, except as follows: (A) When stock of a corporation is sold, exchanged, or otherwise disposed of, the membership of a corporation in a commonly controlled group shall not be terminated, if the requirements of subdivision (b) are again met immediately after the sale, exchange, or disposition. (B) The Franchise Tax Board may treat the commonly controlled group as remaining in place if the conditions of subdivision (b) are again met within a period not to exceed two years. (d) A taxpayer may exclude some or all corporations included in a “commonly controlled group” by reason of paragraph (4) of subdivision (b) by showing that those members of the group are not controlled directly or indirectly by the same interests, within the meaning of the same phrase in Section 482 of the Internal Revenue Code. For purposes of this subdivision, the term “controlled” includes any kind of control, direct or indirect, whether legally enforceable, and however exercisable or exercised. (e) Except as otherwise provided, stock is “owned” when title to the stock is directly held or if the stock is constructively owned. (1) An individual constructively owns stock that is owned by any of the following: (A) His or her spouse. (B) Children, including adopted children, of that individual or the individual’s spouse, who have not attained the age of 21 years. (C) An estate or trust, of which the individual is an executor, trustee, or grantor, to the extent that the estate or trust is for the benefit of that individual’s spouse or children. (2) Stock owned by a corporation, or a member of a controlled group of which the corporation is the parent corporation, is constructively owned by any shareholder owning stock that represents more than 50 percent of the voting power of the corporation. (3) Stock owned by a partnership is constructively owned by any partner, other than a limited partner, in proportion to the partner’s capital interest in the partnership. For this purpose, a partnership is treated as owning proportionately the stock owned by any other partnership in which it has a tiered interest, other than as a limited partner. (4) In any case where a member of a commonly controlled group, or shareholders, officers, directors, or employees of a member of a commonly controlled group, is a general partner in a limited partnership, stock held by the limited partnership is constructively owned by a limited partner to the extent of its capital interest in the limited partnership. (f) For purposes of this section, each of the following shall apply: (1) “Corporation” means a subchapter S corporation, any other incorporated entity, or any entity defined or treated as a corporation pursuant to Section 23038 or 23038.5. (2) “Person” means an individual, a trust, an estate, a qualified employee benefit plan, a limited partnership, or a corporation. (3) “Voting power” means the power of all classes of stock entitled to vote that possess the power to elect the membership of the board of directors of the corporation. (4) “More than 50 percent of the voting power” means voting power sufficient to elect a majority of the membership of the board of directors of the corporation. (5) “Stock representing voting power” includes stock where ownership is retained but the actual voting power is transferred in either of the following manners: (A) For one year or less. (B) By proxy, voting trust, written shareholder agreement, or by similar device, where the transfer is revocable by the transferor. (g) The Franchise Tax Board may prescribe any regulations as may be necessary or appropriate to carry out the purposes of this section, including, but not limited to, regulations that do the following: (1) Prescribe terms and conditions relating to the election described by subdivision (c), and the revocation thereof. (2) Disregard transfers of voting power not described by paragraph (5) of subdivision (f). (3) Treat entities not described by paragraph (2) of subdivision (f) as a person. (4) Treat warrants, obligations convertible into stock, options to acquire or sell stock, and similar instruments as stock. (5) Treat holders of a beneficial interest in, or executor or trustee powers over, stock held by an estate or trust as constructively owned by the holder. (6) Prescribe rules relating to the treatment of partnership agreements which authorize a particular partner or partners to exercise voting power of stock held by the partnership. (h) This section shall apply to taxable years beginning on or after January 1, 1995. (Amended by Stats. 2000, Ch. 862, Sec. 215. Effective January 1, 2001.)
  57. 25106.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 17. Allocation of Income [25101 - 25141] ( Chapter 17 added by Stats. 1955, Ch. 938. ) ## ARTICLE 1. General Provisions [25101 - 25108] ( Heading of Article 1 added by Stats. 1966, Ch. 2. )

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    Dividends between corporations in a unitary group must be removed from the recipient’s income and generally are not counted in determining tax, with an exception for Section 24345.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 17. Allocation of Income [25101 - 25141] ( Chapter 17 added by Stats. 1955, Ch. 938. ) ## ARTICLE 1. General Provisions [25101 - 25108] ( Heading of Article 1 added by Stats. 1966, Ch. 2. ) ## 25106. (a) (1) In any case in which the income of a corporation is or has been determined under this chapter with reference to the income and apportionment factors of one or more other corporations with which it is doing or has done a unitary business, all dividends paid by one to another of any of those corporations shall, to the extent those dividends are paid out of the income previously described of the unitary business, be eliminated from the income of the recipient and, except for purposes of applying Section 24345, shall not be taken into account under Section 24344 or in any other manner in determining the tax of any member of the unitary group. (2) (A) For purposes of this section, the dividends described in paragraph (1) include dividends paid out of the income previously described of the unitary business by a member of the unitary group to a corporation formed subsequent to the accrual of the income, if the recipient corporation was part of the unitary group during the period from its formation to its receipt of those dividends. (B) The Franchise Tax Board may deny any dividend elimination for the dividends described in this paragraph if the board determines that a transaction is entered into or structured with a principal purpose of evading the tax imposed by this part. (3) For purposes of this section, “income previously described of the unitary business” shall include income earned by members of the unitary group during taxable years when no member of the unitary group was taxable in this state to the extent that the income of the unitary group would have been determined under this chapter had any member of the corporation’s unitary group been subject to tax in this state at the time that income was earned. (b) The Franchise Tax Board may prescribe any regulations that may be necessary or appropriate to carry out the purpose of this section, which is to prevent taxation of dividends received by a member of a unitary group where those dividends were paid from the income previously described of the unitary business by another member of the same unitary group. (Amended by Stats. 2008, Ch. 305, Sec. 10. Effective January 1, 2009. Note: See Sec. 14 of Ch. 305.)
  58. 25106.5.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 17. Allocation of Income [25101 - 25141] ( Chapter 17 added by Stats. 1955, Ch. 938. ) ## ARTICLE 1. General Provisions [25101 - 25108] ( Heading of Article 1 added by Stats. 1966, Ch. 2. )

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    The Franchise Tax Board may issue regulations to help properly report, determine, compute, assess, collect, or adjust tax liability or net income in certain combined-report cases, but it may not use this section to control who is included in the combined report or to pull an excluded entity’s income or expenses into the report.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 17. Allocation of Income [25101 - 25141] ( Chapter 17 added by Stats. 1955, Ch. 938. ) ## ARTICLE 1. General Provisions [25101 - 25108] ( Heading of Article 1 added by Stats. 1966, Ch. 2. ) ## 25106.5. (a) The Franchise Tax Board may adopt regulations necessary to ensure that the tax liability or net income of any taxpayer whose income derived from or attributable to sources within this state which is required to be determined by a combined report pursuant to Section 25101 or 25110 of this chapter, and of each entity included in the combined report, both during and after the period of inclusion in the combined report is properly reported , determined, computed, assessed, collected, or adjusted. (b) Notwithstanding subdivision (a), the Franchise Tax Board shall not adopt regulations under the authority of this section which shall in any manner determine, prescribe, or otherwise affect (1) the inclusion or exclusion in the combined report of those entities whose income and apportionment factors are to be taken into account pursuant to Sections 25101 and 25110 of this chapter, or (2) after the period of inclusion, cause the income or expenses of an entity which is excluded from a combined report pursuant to Sections 25101 and 25110 of this part to be included in a combined report. (Amended by Stats. 1988, Ch. 258, Sec. 7.)
  59. 25107.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 17. Allocation of Income [25101 - 25141] ( Chapter 17 added by Stats. 1955, Ch. 938. ) ## ARTICLE 1. General Provisions [25101 - 25108] ( Heading of Article 1 added by Stats. 1966, Ch. 2. )

    Verify source ↗

    For income allocation and apportionment, an international banking facility maintained by a bank within California is treated as doing business outside the state.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 17. Allocation of Income [25101 - 25141] ( Chapter 17 added by Stats. 1955, Ch. 938. ) ## ARTICLE 1. General Provisions [25101 - 25108] ( Heading of Article 1 added by Stats. 1966, Ch. 2. ) ## 25107. (a) For the purposes of allocation and apportionment of income under Sections 25101 and 25121, an international banking facility maintained by a bank within California shall be considered doing business without the state. Intangible personal property and sales reflected on the segregated books and records recognized by the Board of Governors of the Federal Reserve System as attributable to the international banking facility shall be attributed to that international banking facility in determining the property, payroll, and sales factors of the bank. (b) As used in this section, “bank” means a commercial bank, the principal office of which is located in this state and which is incorporated and doing business under the laws of the United States or of this state, a United States branch or agency of a foreign bank, an Edge corporation organized under Section 25 (a) of the Federal Reserve Act, 12 United States Code 611-631, or an Agreement corporation having an agreement or undertaking with the Board of Governors of the Federal Reserve System under Section 25 of the Federal Reserve Act, 12 United States Code 601-604 (a). (Amended by Stats. 1989, Ch. 1352, Sec. 155. Effective October 2, 1989. Applicable to income years beginning on or after January 1, 1989, by Sec. 172 of Ch. 1352.)
  60. 25108.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 17. Allocation of Income [25101 - 25141] ( Chapter 17 added by Stats. 1955, Ch. 938. ) ## ARTICLE 1. General Provisions [25101 - 25108] ( Heading of Article 1 added by Stats. 1966, Ch. 2. )

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    This section defines how certain corporations calculate state tax items like net loss for state purposes, net operating loss deductions, and net income (loss) for state purposes.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 17. Allocation of Income [25101 - 25141] ( Chapter 17 added by Stats. 1955, Ch. 938. ) ## ARTICLE 1. General Provisions [25101 - 25108] ( Heading of Article 1 added by Stats. 1966, Ch. 2. ) ## 25108. (a) For corporations whose income is subject to the provisions of Section 25101 or 25101.15, the net operating loss determined in accordance with Section 172 of the Internal Revenue Code for a particular taxable year shall be the corporation’s “net loss for state purposes” as defined in subdivision (c). (b) The net operating loss deduction allowed by Sections 24416, 24416.1, and 24416.2, for a taxable year shall be deducted from “net income for state purposes” (as defined in subdivision (c)) for that taxable year. (c) “Net income (loss) for state purposes” means the sum of the net income or loss of that corporation apportionable to this state and the income or loss allocable to this state as nonbusiness income, as provided by Chapter 17 (commencing with Section 25101). (Amended by Stats. 2000, Ch. 862, Sec. 216. Effective January 1, 2001.)
  61. 2511.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 5. COLLECTION OF TAXES [2501 - 3205] ( Part 5 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Medium of Payment [2501 - 2516] ( Chapter 1 enacted by Stats. 1939, Ch. 154. )

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    A county board of supervisors may, by four-fifths vote, let county warrants for a fiscal year be used to pay taxes for the same fiscal year if the warrant does not exceed the taxes due.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 5. COLLECTION OF TAXES [2501 - 3205] ( Part 5 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Medium of Payment [2501 - 2516] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## 2511. By resolution of the board of supervisors passed by a four-fifths vote, any county warrant for a particular fiscal year may be received in payment of taxes for the same fiscal year levied by the county issuing the warrants if the amount of the warrant does not exceed the amount of taxes being paid. If registered, warrants shall be received only in the order of registration. (Enacted by Stats. 1939, Ch. 154.)
  62. 2511.1.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 5. COLLECTION OF TAXES [2501 - 3205] ( Part 5 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Medium of Payment [2501 - 2516] ( Chapter 1 enacted by Stats. 1939, Ch. 154. )

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    The board of supervisors may allow property taxes to be paid by credit card, and the county must contract for that payment system if authorized. The county and tax collector may charge fees tied to card processing and nonpayment.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 5. COLLECTION OF TAXES [2501 - 3205] ( Part 5 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Medium of Payment [2501 - 2516] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## 2511.1. (a) As used in this section: (1) “Credit card” means any card, plate, coupon book, or other credit device existing for the purpose of being used from time to time upon presentation to obtain money, property, labor, or services on credit. (2) “Card issuer” means any person who issues a credit card and purchases credit card drafts, or the agent for those purposes with respect to a credit card. (3) “Cardholder” means any person to whom a credit card is issued or any person who has agreed with the card issuer to pay obligations arising from the issuance of a credit card to another person. (4) “Draft purchaser” means any person who purchases credit card drafts. (b) The board of supervisors may authorize the acceptance of a credit card for payment of property taxes. Following an authorization pursuant to the preceding sentence, the county shall, upon approval of the board of supervisors, execute a contract with one or more credit card issuers or draft purchasers. The contract shall provide for all of the following: (1) The respective rights and duties of the county, and card issuers and draft purchasers regarding the presentment, acceptability, and payment of credit card drafts. (2) The establishment of a reasonable means by which to facilitate payment settlements. (3) The payment to the card issuer or draft purchaser of a reasonable fee or discount. (4) Other matters appropriately included in contracts with respect to the purchase of credit card drafts as may be agreed upon by the parties to the contract. (c) The honoring of a credit card pursuant to subdivision (b) shall constitute payment of the tax as of the date the credit card is honored, provided the credit card draft is paid following its due presentment to a card issuer or draft purchaser. (d) The county may impose a fee for the use of a credit card sufficient in amount to provide for the recovery of fees or discounts paid by the county under paragraph (3) of subdivision (b) and all other costs incurred by the county in providing for payment by credit. Fees imposed under this subdivision shall be approved by the board of supervisors. (e) If any credit card draft is not paid following due presentment to a card issuer or draft purchaser or is charged back to the county for any reason, any record of payment made shall be null and void. Any receipt issued in acknowledgment of payment shall also be null and void. The obligation of the cardholder shall continue as an outstanding obligation as though no payment had been attempted. (f) Upon notice of nonpayment of the credit card draft, the tax collector may charge the person who attempted the payment a fee not to exceed the costs of processing the draft, providing notice of nonpayment to that person, and making required cancellations on the tax roll. The amount of the fee shall be set by the board of supervisors pursuant to Section 54986 of the Government Code, and may be added to the tax bill and collected in the same manner as costs recovered pursuant to Section 2621. Fees imposed under this subdivision shall be approved by the board of supervisors. (Amended by Stats. 1998, Ch. 497, Sec. 3. Effective January 1, 1999.)
  63. 25110.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 17. Allocation of Income [25101 - 25141] ( Chapter 17 added by Stats. 1955, Ch. 938. ) ## ARTICLE 1.5. Water's-Edge Election [25110 - 25116] ( Article 1.5 added by Stats. 1986, Ch. 660, Sec. 6. )

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    A qualified taxpayer may elect a water’s-edge method for reporting income, and taxpayers making that election on or after January 1, 2006 must include specified income and apportionment factors. The Franchise Tax Board must also issue coordinating regulations.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 17. Allocation of Income [25101 - 25141] ( Chapter 17 added by Stats. 1955, Ch. 938. ) ## ARTICLE 1.5. Water's-Edge Election [25110 - 25116] ( Article 1.5 added by Stats. 1986, Ch. 660, Sec. 6. ) ## 25110. (a) Notwithstanding Section 25101, a qualified taxpayer, as defined in paragraph (2) of subdivision (b), that is subject to the tax imposed under this part, may elect to determine its income derived from or attributable to sources within this state pursuant to a water’s-edge election in accordance with the provisions of this part, as modified by this article. A taxpayer, that makes a water’s-edge election on or after January 1, 2006, shall take into account that portion of its own income and apportionment factors and the income and apportionment factors of its affiliated entities to the extent provided below: (1) The entire income and apportionment factors of any of the following corporations: (A) Domestic international sales corporations, as described in Sections 991 to 994, inclusive, of the Internal Revenue Code and foreign sales corporations as described in Sections 921 to 927, inclusive, of the Internal Revenue Code. (B) Any corporation (other than a bank), regardless of the place where it is incorporated if the average of its property, payroll, and sales factors within the United States is 20 percent or more. (C) Corporations that are incorporated in the United States, excluding corporations making an election pursuant to Sections 931 to 936, inclusive, of the Internal Revenue Code. (D) Export trade corporations, as described in Sections 970 to 972, inclusive, of the Internal Revenue Code. (2) (A) With respect to a corporation that is not described in subparagraphs (A), (B), (C), and (D) of paragraph (1), as provided in either one or both of the following clauses: (i) The income and apportionment factors of that corporation to the extent of its income derived from or attributable to sources within the United States and its factors assignable to a location within the United States in accordance with paragraph (3) of subdivision (b). Income of that corporation derived from or attributable to sources within the United States as determined by federal income tax laws shall be limited to, and determined from, the books of account maintained by the corporation with respect to its activities conducted within the United States. (ii) The income and apportionment factors of that corporation that is a “controlled foreign corporation,” as defined in Section 957 of the Internal Revenue Code, to the extent determined by multiplying the income and apportionment factors of that corporation without application of this subparagraph by a fraction not to exceed one, the numerator of which is the “Subpart F income” of that corporation for that taxable year and the denominator of which is the “earnings and profits” of that corporation for that taxable year. (B) For purposes of this paragraph, both of the following apply: (i) “Subpart F income” means “Subpart F income” as defined in Section 952 of the Internal Revenue Code. (ii) “Earnings and profits” means “earnings and profits” as described in Section 964 of the Internal Revenue Code. (3) The income and apportionment factors of the corporations described in this subdivision shall be taken into account only to the extent that they would have been taken into account had no election under this section been made. (4) The Franchise Tax Board shall prescribe regulations to coordinate implementation of subparagraph (A) of paragraph (2) to prevent multiple inclusion or exclusion of income and factors in situations where the same item of income is described in both clauses. (b) For purposes of this article and Section 24411, all of the following definitions apply: (1) An “affiliated corporation” means a corporation that is a member of a commonly controlled group as defined in Section 25105. (2) A “qualified taxpayer” means a corporation that does both of the following: (A) Files with the state tax return, on which the water’s-edge election is made, a consent to the taking of depositions, at the time and place most reasonably convenient to all parties, from key domestic corporate individuals and to the acceptance of subpoenas duces tecum requiring reasonable production of documents to the Franchise Tax Board, as provided in Section 19504, by the State Board of Equalization, as provided in Section 5005 of Title 18 of the California Code of Regulations, or by the courts of this state, as provided in Chapter 2 (commencing with Section 1985) of Title 3 of Part 4 of, and Chapter 9 (commencing with Section 2025.010) of Title 4 of Part 4 of, the Code of Civil Procedure. The consent relates to issues of jurisdiction and service and does not waive any defenses that a taxpayer may otherwise have. The consent shall remain in effect as long as the water’s-edge election is in effect, and shall be limited to providing that information necessary to review or adjust income or deductions in a manner authorized by Section 482, 861, Subpart F of Part III of Subchapter N, or similar provisions, of the Internal Revenue Code, together with the regulations adopted pursuant to those provisions, and for the conduct of an investigation with respect to any unitary business in which the taxpayer may be involved. (B) Agrees that, for purposes of this article, dividends received by any corporation whose income and apportionment factors are taken into account pursuant to subdivision (a) from either of the following are functionally related dividends and shall be presumed to be business income: (i) A corporation of which more than 50 percent of the voting stock is owned, directly or indirectly, by members of the unitary group and which is engaged in the same general line of business. (ii) Any corporation that is either a significant source of supply for the unitary business or a significant purchaser of the output of the unitary business, or that sells a significant part of its output or obtains a significant part of its raw materials or input from the unitary business. “Significant,” as used in this subparagraph, means an amount of 15 percent or more of either input or output. All other dividends shall be classified as business or nonbusiness income without regard to this subparagraph. (3) The definitions and locations of property, payroll, and sales shall be determined under the laws and regulations that set forth the apportionment formulas used by the individual states to assign net income subject to taxes on, or measured by, net income in that state. If a state does not impose a tax on, or measured by, net income or does not have laws or regulations with respect to the assignment of property, payroll, and sales, the laws and regulations provided in Article 2 (commencing with Section 25120) shall apply. Sales shall be considered to be made to a state only if the corporation making the sale may otherwise be subject to a tax on, or measured by, net income under the Constitution or laws of the United States, and shall not include sales made to a corporation whose income and apportionment factors are taken into account pursuant to subdivision (a) in determining the amount of income of the taxpayer derived from or attributable to sources within this state. (4) “The United States” means the 50 states of the United States and the District of Columbia. (c) All references in this part to income determined pursuant to Section 25101 shall also mean income determined pursuant to this section. (Added by Stats. 2006, Ch. 22, Sec. 2. Effective May 8, 2006. Applicable from January 1, 2006, as prescribed in subds. (a) and (b) of Sec. 3 of Ch. 22.)
  64. 25111.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 17. Allocation of Income [25101 - 25141] ( Chapter 17 added by Stats. 1955, Ch. 938. ) ## ARTICLE 1.5. Water's-Edge Election [25110 - 25116] ( Article 1.5 added by Stats. 1986, Ch. 660, Sec. 6. )

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    This section sets how a water’s-edge election is made, renewed, terminated, and administered.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 17. Allocation of Income [25101 - 25141] ( Chapter 17 added by Stats. 1955, Ch. 938. ) ## ARTICLE 1.5. Water's-Edge Election [25110 - 25116] ( Article 1.5 added by Stats. 1986, Ch. 660, Sec. 6. ) ## 25111. (a) For taxable years beginning before January 1, 2003, the making of a water’s-edge election as provided for in Section 25110 shall be made by contract with the Franchise Tax Board in the original return for a year and shall be effective only if every taxpayer that is a member of the water’s-edge group and which is subject to tax under this part makes the election. A single taxpayer that is engaged in more than one business activity subject to allocation and apportionment as provided in Article 2 (commencing with Section 25120) of Chapter 17 may make a separate election for each business. The form and manner of making the water’s-edge election shall be prescribed by the Franchise Tax Board. Each contract making a water’s-edge election shall be for an initial term of 84 months, except as provided in subdivision (b). Each contract shall provide that on the anniversary date of the contract or any other annual date specified by the contract a year shall be added automatically to the initial term unless notice of nonrenewal is given as provided in subdivision (d). An affiliated corporation that is a member of the water’s-edge group and subsequently becomes subject to tax under this part or is a nonelecting taxpayer that is subsequently proved to be a member of the water’s-edge group pursuant to a Franchise Tax Board audit determination, as evidenced by a notice of deficiency proposed to be assessed or a notice of tax change, shall be deemed to have elected. No water’s-edge election shall be made for a taxable year beginning prior to January 1, 1988. (b) A water’s-edge election may be terminated by a taxpayer prior to the end of the 84-month period if either of the following occurs: (1) The taxpayer is acquired directly or indirectly by a nonelecting entity which alone or together with those affiliates included in its combined report is larger than the taxpayer as measured by equity capital. (2) With the permission of the Franchise Tax Board. (c) In granting a change of election, the Franchise Tax Board shall impose any conditions that are necessary to prevent the avoidance of tax or to clearly reflect income for the period the election was, or was purported to be, in effect. These conditions may include a requirement that income, including dividends paid from income earned while a water’s-edge election was in effect, which would have been included in determining the income of the taxpayer from sources within and without this state pursuant to Section 25101 but for the water’s-edge election shall be included in income in the year in which the election is changed. (d) If the taxpayer desires in any year not to renew the election, the taxpayer shall serve written notice of nonrenewal upon the board at least 90 days in advance of the annual renewal date. Unless that written notice is provided to the board, the election shall be considered renewed as provided in subdivision (a). (e) If the taxpayer serves notice of intent in any year not to renew the existing water’s-edge election, that existing election shall remain in effect for the balance of the period remaining since the original election or the last renewal of the election, as the case may be. (f) To the extent that a taxpayer would have been required to file on a water’s-edge basis in its first taxable year beginning on or after January 1, 2003, pursuant to a water’s-edge election made in a prior year under this section, the terms of this section no longer apply and that election shall be deemed to have been made under the terms of Section 25113. However, the commencement date of the election made in a prior year under this section shall continue to be treated as the commencement date of the water’s-edge election period for purposes of applying the provisions of Section 25113. (Amended by Stats. 2003, Ch. 633, Sec. 9. Effective September 30, 2003.)
  65. 25111.1.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 17. Allocation of Income [25101 - 25141] ( Chapter 17 added by Stats. 1955, Ch. 938. ) ## ARTICLE 1.5. Water's-Edge Election [25110 - 25116] ( Article 1.5 added by Stats. 1986, Ch. 660, Sec. 6. )

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    The section ends legal support for certain water’s-edge contracts after January 1, 1994, rescinds older contracts for later periods, and keeps some taxpayers bound for a limited transition period.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 17. Allocation of Income [25101 - 25141] ( Chapter 17 added by Stats. 1955, Ch. 938. ) ## ARTICLE 1.5. Water's-Edge Election [25110 - 25116] ( Article 1.5 added by Stats. 1986, Ch. 660, Sec. 6. ) ## 25111.1. (a) For any taxable year beginning on or after January 1, 1994, consideration for water’s-edge contracts in existence as of that date is no longer provided for by law. Contracts entered into for taxable years beginning prior to January 1, 1994, are rescinded for any periods remaining on those contracts commencing on the first day of the taxpayer’s first taxable year that begins on or after January 1, 1994. Any fiscal year taxpayer whose contract is in effect as of December 31, 1993, shall continue to be bound by that contract until the close of its taxable year after January 1, 1994, and before December 31, 1994. (b) Notwithstanding subdivision (a), and except for the purposes of Section 25115, all taxpayers that are members of a water’s-edge group consisting of taxpayers with different taxable years shall continue to be bound by the contract in effect as of December 31, 1993, until the taxable year beginning prior to January 1, 1994, and ending in 1994 for each of the taxpayer members of the water’s-edge group has ended. (Amended by Stats. 2000, Ch. 862, Sec. 219. Effective January 1, 2001.)
  66. 25112.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 17. Allocation of Income [25101 - 25141] ( Chapter 17 added by Stats. 1955, Ch. 938. ) ## ARTICLE 1.5. Water's-Edge Election [25110 - 25116] ( Article 1.5 added by Stats. 1986, Ch. 660, Sec. 6. )

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    A taxpayer that elects the Section 25110 filing option must keep and provide specified tax and ownership records to the Franchise Tax Board on request, and must pay penalties if it fails to do so.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 17. Allocation of Income [25101 - 25141] ( Chapter 17 added by Stats. 1955, Ch. 938. ) ## ARTICLE 1.5. Water's-Edge Election [25110 - 25116] ( Article 1.5 added by Stats. 1986, Ch. 660, Sec. 6. ) ## 25112. (a) If a taxpayer electing to file under Section 25110 fails to supply any information described in subdivision (b), the taxpayer shall pay a penalty of one thousand dollars ($1,000) for each taxable year with respect to which the failure occurs. (b) A taxpayer electing to file pursuant to Section 25110 shall do all of the following: (1) Retain and make available to the Franchise Tax Board, upon request, the documents and information, including any questionnaires completed and submitted to the Internal Revenue Service or qualified states, that are necessary to audit issues involving attribution of income to the United States or foreign jurisdictions under Sections 482, 861, 863, 902, and 904, and Subpart F of Part III of Subchapter N, or similar sections of the Internal Revenue Code. (2) Identify, upon request, principal officers or employees who have substantial knowledge of, and access to, documents and records that discuss pricing policies, profit centers, cost centers, and the methods of allocating income and expense among these centers. The information shall include the employees’ titles and addresses. (3) Retain and make available, upon request, all documents and correspondence ordinarily available to a corporation included in the water’s-edge election that are submitted to, or obtained from, the Internal Revenue Service, foreign countries or their territories or possessions, and competent authority pertaining to ruling requests, rulings, settlement resolutions, and competing claims involving jurisdictional assignment and sourcing of income that affect the assignment of income to the United States. The documents shall include all ruling requests and rulings on reorganizations involving foreign incorporation of branches, all ruling requests and rulings on changing a corporation’s jurisdictional incorporation, and all documents that are ordinarily available to a corporation included in the water’s-edge election that pertain to the determination of foreign tax liability, including examination reports issued by foreign taxing administrations. If the documents have been translated, the translations shall be furnished. (4) Retain and make available, upon request, information filed with the Internal Revenue Service to comply with Sections 6038, 6038A, 6038B, 6038C, and 6041 of the Internal Revenue Code. (5) Upon request, prepare and make available for each corporation organized or created under the laws of the United States or a political subdivision thereof, of which 50 percent or more of its voting stock is directly or indirectly owned or controlled, the information that would be included in the forms described in paragraph (4) if those forms were required for United States corporations. (6) Retain and make available, upon request, all state tax returns filed by each corporation included under subdivision (a) in each state, including the District of Columbia. (7) Comply with reasonable requests for information necessary to determine or verify its net income, apportionment factors, or the geographic source of that income pursuant to the Internal Revenue Code. (8) For purposes of this subdivision, information for any year shall be retained for that period of time in which the taxpayer’s income or franchise tax liability to this state may be subject to adjustment, including all periods in which additional income or franchise taxes may be assessed or during which an appeal is pending before the State Board of Equalization or a lawsuit is pending in the courts of this state or the United States with respect to California franchise or income tax. (c) If the failure continues for more than 90 days after the date on which the Franchise Tax Board mails notice of that failure to the taxpayer, the taxpayer shall pay a penalty (in addition to the amount required under subdivision (a)) of one thousand dollars ($1,000) for each 30-day period (or fraction thereof) during which the failure continues after the expiration of the 90-day period. The increase in any penalty under this subdivision shall not exceed twenty-four thousand dollars ($24,000). (d) If the taxpayer fails to comply substantially with any formal document request arising out of the examination of the tax treatment of any item (hereafter in this section referred to as the “examined item”) before the 90th day after the date of the mailing of the request, any court having jurisdiction of a civil proceeding in which the tax treatment of the examined item is an issue may, upon motion by the Franchise Tax Board, prohibit the introduction by the taxpayer of documentation covered by that request. (e) For purposes of this section, the time in which information is to be furnished (and the beginning of the 90-day period after notice by the Franchise Tax Board) shall be treated as beginning not earlier than the last day on which reasonable cause existed for failure to furnish the information. (f) This section shall not apply with respect to any requested documentation if the taxpayer establishes that the failure to provide the documentation, as requested by the Franchise Tax Board, is due to reasonable cause. For purposes of subdivision (d), the fact that a foreign jurisdiction would impose a civil or criminal penalty on the taxpayer (or any other person) for disclosing the requested documentation is not reasonable cause unless, after in-camera review of the documentation, the court finds otherwise. (g) For purposes of this section, the term “formal document request” means any request (made after the normal request procedures have failed to produce the requested documentation) for the production of documentation that is mailed by registered or certified mail to the taxpayer at its last known address and that sets forth all of the following: (1) The time and place for the production of the documentation. (2) A statement of the reason the documentation previously produced (if any) is not sufficient. (3) A description of the documentation being sought. (4) The consequences to the taxpayer of the failure to produce the documentation described in this section. (h) Notwithstanding any other law or rule of law, any taxpayer to whom a formal document request is mailed may begin a proceeding to quash that request not later than the 90th day after the date the request was mailed. In that proceeding, the Franchise Tax Board may seek to compel compliance with the request. (i) The superior courts of the State of California for the Counties of Los Angeles, Sacramento, and San Diego, and for the City and County of San Francisco shall have jurisdiction to hear any proceeding brought under subdivision (h). An order denying the petition shall be deemed a final order that may be appealed. The running of the 90-day period referred to in subdivision (c) shall be suspended during any period during which a proceeding brought under subdivision (h) is pending. (j) For purposes of this section, “documentation” means any documentation which may be relevant or material to the tax treatment of the examined item. (k) The Franchise Tax Board, and any court having jurisdiction over a proceeding under subdivision (g), may extend the 90-day period referred to in subdivision (b). (l) If any corporation takes any action as provided in subdivision (h), the running of any period of limitations under Sections 19057 to 19067, inclusive (relating to the assessment and collection of tax), or under Section 19704 (relating to criminal prosecutions) with respect to that corporation shall be suspended for the period during which the proceedings under subdivision (h) and appeals thereto are pending. (Amended by Stats. 2000, Ch. 862, Sec. 220. Effective January 1, 2001.)
  67. 25113.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 17. Allocation of Income [25101 - 25141] ( Chapter 17 added by Stats. 1955, Ch. 938. ) ## ARTICLE 1.5. Water's-Edge Election [25110 - 25116] ( Article 1.5 added by Stats. 1986, Ch. 660, Sec. 6. )

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    This section sets rules for making, validating, and ending a water’s-edge election for corporate tax purposes.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 17. Allocation of Income [25101 - 25141] ( Chapter 17 added by Stats. 1955, Ch. 938. ) ## ARTICLE 1.5. Water's-Edge Election [25110 - 25116] ( Article 1.5 added by Stats. 1986, Ch. 660, Sec. 6. ) ## 25113. (a) Except as provided in subdivision (f), for taxable years beginning on or after January 1, 2003, the election provided for in Section 25110 shall be made on an original, timely filed return for the year of the election. The election will be considered valid if both of the following conditions are satisfied: (1) The tax is computed in a manner consistent with a water’s-edge election. (2) A written notification of election is filed with the return on a form prescribed by the Franchise Tax Board. Pursuant to regulations promulgated under this section, the Franchise Tax Board may accept the filing of other objective evidence that supports the conclusion that a water’s-edge election was intended in lieu of notification on the designated form. (b) Except as otherwise provided, a water’s-edge election shall be effective only if made by every member of the self-assessed combined reporting group that is subject to taxation under this part. (1) An election made on a group return of a self-assessed combined reporting group shall constitute an election by each taxpayer member included in that group return, unless one of those taxpayers files a separate return in which no election is made and paragraph (2) does not apply. (2) A taxpayer that fails to make an election on its own timely filed original return shall be deemed to have elected if either of the following applies: (A) It has a parent corporation that is an electing taxpayer that included the income and apportionment factors of the nonelecting taxpayer in the self-assessed combined reporting group reflected in the electing parent’s timely filed original return, including a group return. (B) The income and apportionment factors of the nonelecting taxpayer are reflected in the self-assessed combined reporting group of a timely filed original return of an electing taxpayer, and the notification of election filed by the electing taxpayer pursuant to paragraph (2) of subdivision (a) is signed by an officer or other authorized agent of either a parent corporation of the nonelecting taxpayer or another corporation with authority to bind the nonelecting taxpayer to an election. (3) For purposes of this subdivision, a “parent corporation” of the taxpayer is a corporation that owns or constructively owns stock possessing more than 50 percent of the voting power of the taxpayer as determined under subdivisions (e) and (f) of Section 25105. (4) If a corporation that is a member of a combined reporting group is not itself subject to taxation under this part in the year for which the water’s-edge election is made, but subsequently becomes subject to taxation under this part, that corporation shall be deemed to have elected with the other taxpayer members of the combined reporting group. (5) If a unitary corporation not incorporated in the United States that is not itself subject to taxation under this part in the year for which the valid water’s-edge election is made, but subsequently becomes subject to taxation under this part solely due to subdivision (b) of Section 23101 in a taxable year beginning on or after January 1, 2021, that corporation shall be deemed to have elected with the other members of the unitary combined reporting group. (6) A taxpayer that is engaged in more than one apportioning trade or business as defined in paragraph (6) of subdivision (d) of Section 25128 may make a separate election for each apportioning trade or business. (c) A water’s-edge election shall remain in effect or be terminated in accordance with this subdivision. (1) Except as otherwise provided in this subdivision, if one or more electing taxpayer members of a combined reporting group later become disaffiliated or otherwise cease to be included in the combined reporting group, the water’s-edge election shall remain in effect as to both the departing taxpayer members and any remaining taxpayer members. (2) If an electing taxpayer and a nonelecting taxpayer become members of a new unitary affiliate group, the nonelecting taxpayer shall be deemed to have elected if the value of the total business assets of the electing taxpayer, and its component unitary group, if any, is larger than the value of the total business assets of the nonelecting taxpayer, and its component unitary group, if any. Otherwise, the water’s-edge election shall be automatically terminated at the time the electing members become part of the combined report. For purposes of applying paragraphs (9) and (10), the commencement date of the deemed election shall be the same as the commencement date of the electing taxpayers. (3) If taxpayers filing under water’s-edge elections with different commencement dates become members of a new unitary affiliate group, the earliest election date shall be deemed to apply to all electing taxpayers if the total business assets of the earlier electing taxpayer, and its component unitary group, if any, is larger than the value of the total business assets of the later electing taxpayer, and its component unitary group, if any. Otherwise, the later election commencement date shall apply to all electing taxpayers. (4) (A) If a taxpayer with an election that has been terminated under paragraph (9) or (10) becomes a member of a new unitary affiliate group that includes another electing or nonelecting taxpayer not affected by those paragraphs, any water’s-edge election of the other taxpayer member, if applicable, shall terminate, and any restrictions on making a new water’s-edge election, relating to an election terminated under those paragraphs, shall apply to all taxpayer members of the new unitary affiliate group if the total business assets of the taxpayer with the terminated election, and its component unitary group, if any, is larger than the other taxpayer, and its component unitary group, if any. Otherwise, paragraph (2) shall apply, if applicable. If paragraph (2) does not apply, all taxpayer members of the new unitary affiliate group will be treated as nonelecting taxpayers that are not subject to any restrictions on making a new water’s-edge election. (B) If two nonelecting taxpayers with different termination dates under paragraph (9) or (10) become members of a new unitary affiliate group, the earliest termination date shall be deemed to apply to all nonelecting taxpayers, as well as any restrictions on making a new water’s-edge election relating to that termination, if the total business assets of the earlier terminating taxpayer, and its component unitary group, if any, is larger than the value of the total business assets of the later terminating taxpayer, and its component unitary group, if any. Otherwise, the later termination date, and the related restrictions on making a new water’s-edge election, shall apply to all taxpayer members of the new unitary affiliate group. (5) (A) Except as provided in subparagraph (B), if one or more electing taxpayers did not report their income and apportionment factors as members of a combined reporting group with one or more nonelecting taxpayers, and, pursuant to a Franchise Tax Board audit determination, the nonelecting taxpayers, are properly in the same combined reporting group as the electing taxpayers, the water’s-edge election of the electing taxpayers shall remain in effect and the nonelecting taxpayers shall be deemed to have made a water’s-edge election. The commencement date of the deemed water’s-edge election shall be the same as the commencement date of the electing taxpayers. (B) Subparagraph (A) may not apply if the value of total business assets of the electing taxpayers does not exceed the value of total business assets of the nonelecting taxpayers. In that event, the water’s-edge election of each electing taxpayer is terminated as of the date the nonelecting taxpayers are, pursuant to the audit determination described in subparagraph (A), properly included in the same combined reporting group as the electing taxpayers. (C) For purposes of applying the business asset test of this paragraph, the term “business assets” shall have the same meaning as subparagraph (A) of paragraph (6), except that the business assets of other members of the unitary affiliate group that are not taxpayers shall not be taken into account. (D) Notwithstanding subparagraph (A), nonelecting taxpayers may not be deemed to have made a water’s-edge election if the Franchise Tax Board audit determination described in subparagraph (A) is withdrawn or otherwise overturned. (6) For purposes of paragraphs (2) to (5), inclusive, the following shall apply: (A) “Business assets” are assets, including intangible assets, other than stock of a member of the unitary affiliate group, which are used in the conduct of the business of the unitary affiliate group or would produce business income to the unitary affiliate group, if an election were not in place, if the assets were sold. Business assets shall be valued at net book value. (B) The phrase “unitary affiliate group” refers to all of those corporations that would constitute a unitary group if a water’s-edge election were not made. (C) The phrase “new unitary affiliate group” refers to a unitary affiliate group that is created by a new affiliation of two or more corporations, or by the addition of one or more new members to an existing unitary affiliate group. (D) The phrase “component unitary group” means that portion of a group of corporations that have become members of a new unitary affiliate group that were members of their own respective unitary affiliate group prior to entering the new unitary affiliate group, disregarding any corporations that did not become part of the new unitary group. (7) In the application of paragraphs (2) to (4), inclusive, a series of acquisitions as steps of a single transaction shall be aggregated as a single change of membership. (8) In the event of a merger or consolidation, the water’s-edge status and election commencement date or termination date of the surviving corporation shall be consistent with the result that would have been obtained under paragraphs (2) to (4), inclusive, if the surviving corporation had acquired the stock of the transferor corporation. (9) A water’s-edge election may be terminated without the consent of the Franchise Tax Board after it has been in effect for at least 84 months. The termination shall be made on an original, timely filed return for the first year in which the water’s-edge election is to be terminated. To be effective, the termination shall be made by every taxpayer that is a member of the water’s-edge group in the same manner as the election provided under subdivisions (a) and (b). (10) A water’s-edge election may be terminated before the 84-month period described in paragraph (9) has elapsed, but only with the consent of the Franchise Tax Board. A request for termination shall be made at the time and in the manner specified by the Franchise Tax Board. (A) The request may be granted for good cause. For purposes of this section, good cause shall have the same meaning as specified in Treasury Regulations Section 1.1502-75(c). (B) The Franchise Tax Board shall consent to a termination requested by all members of a water’s-edge group, if the purpose of the request is to permit the state to contract with an expatriate corporation, or its subsidiary, pursuant to paragraph (2) of subdivision (b) of Section 10286 of the Public Contract Code. A water’s-edge election terminated pursuant to this subparagraph shall, however, be effective for the year in which the expatriate corporation, or its subsidiary, enters into the contract with the state. (11) Except for deemed elections as provided in paragraphs (2), (4), and (5), if a water’s-edge election is terminated under paragraph (9) or (10), another election may not be made under this section for any taxable year that begins within the 84-month period following the last day of the election period that was terminated. The Franchise Tax Board may waive the application of this prohibition period for good cause. (12) A water’s-edge election shall remain in effect until terminated. (d) For purposes of this section, the following shall apply: (1) A “combined reporting group” means those corporations whose income and apportionment factors are properly considered pursuant to this chapter in computing the income of the individual taxpayer that is derived from or attributable to sources within this state, taking into account a valid water’s-edge election. (2) A “group return” refers to the single return which taxpayer members of a combined reporting group may elect by contract to file, in the form and manner prescribed by the Franchise Tax Board, in lieu of filing their own respective returns. (3) A “self-assessed combined reporting group” means that group of corporations whose income and apportionment factors are reflected in a combined report prepared pursuant to this chapter in a timely filed return, taking into account the effects of a purported water’s-edge election, whether or not the membership of the corporations in that combined report was correctly determined. (e) The Franchise Tax Board may prescribe any regulations as may be necessary or appropriate to carry out the purposes of this section. (f) To the extent that a taxpayer would have been required to file on a water’s-edge basis in its first taxable year beginning on or after January 1, 2003, pursuant to a water’s-edge election made in a prior year under Section 25111, the terms of Section 25111 may not apply and the election shall be deemed to have been made under the terms of this section. However, the commencement date of the election made in a prior year under Section 25111 shall continue to be treated as the commencement date of the water’s-edge election period for purposes of applying this section. (Amended by Stats. 2020, Ch. 297, Sec. 4. (AB 3372) Effective January 1, 2021.)
  68. 25114.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 17. Allocation of Income [25101 - 25141] ( Chapter 17 added by Stats. 1955, Ch. 938. ) ## ARTICLE 1.5. Water's-Edge Election [25110 - 25116] ( Article 1.5 added by Stats. 1986, Ch. 660, Sec. 6. )

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    The Franchise Tax Board must examine returns for taxpayers covered by this article and may reallocate income and related items between related businesses when needed to prevent tax evasion or clearly reflect income.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 17. Allocation of Income [25101 - 25141] ( Chapter 17 added by Stats. 1955, Ch. 938. ) ## ARTICLE 1.5. Water's-Edge Election [25110 - 25116] ( Article 1.5 added by Stats. 1986, Ch. 660, Sec. 6. ) ## 25114. (a) The Franchise Tax Board, for purposes of administering the provisions of this article, shall examine all returns filed by taxpayers subject to these provisions. (b) (1) In any case of two or more organizations, trades, or businesses, whether or not organized in the United States and whether or not affiliated, owned or controlled directly or indirectly by the same interests, the Franchise Tax Board may distribute, apportion, or allocate gross income, deductions, credits, or allowances between or among these organizations, trades, or businesses, if the board determines that the distribution, apportionment, or allocation is necessary in order to prevent evasion of taxes or clearly to reflect the income of any of these organizations, trades, or businesses. In the case of any transfer, or license, of intangible property, within the meaning of Section 936(h)(3)(B) of the Internal Revenue Code, the income with respect to that transfer or license shall be commensurate with the income attributable to the intangible property. (2) In making distributions, apportionments, and allocations under this section, the Franchise Tax Board shall generally follow the rules, regulations, and procedures of the Internal Revenue Service in making audits under Section 482 of the Internal Revenue Code. Any of these rules, regulations, and procedures adopted by the Franchise Tax Board shall not be subject to review by the Office of Administrative Law. (3) If the Internal Revenue Service has conducted a detailed audit pursuant to Section 482 of the Internal Revenue Code or Subchapter N of Chapter 1 of Subtitle A of the Internal Revenue Code and has made adjustments pursuant to those provisions, it shall be presumed, to the extent that the provisions relate to the determination of the amount of income and factors required to be taken into account pursuant to Section 25110, that no further adjustments are necessary for this state’s purposes. If the Internal Revenue Service has conducted a detailed audit pursuant to Section 482 of the Internal Revenue Code or Subchapter N of Chapter 1 of Subtitle A of the Internal Revenue Code and has made or proposed no adjustments to the transactions examined, it shall be presumed, to the extent that the provisions relate to the determination of the amount of income and factors required to be taken into account pursuant to Section 25110, that no adjustment is necessary for this state’s purposes. These presumptions apply to all Internal Revenue Service audit determinations, including determinations made by the Appeals and Competent Authority. These presumptions shall be overcome if the Franchise Tax Board or the taxpayer demonstrates that an adjustment or a failure to make an adjustment was erroneous, if it demonstrates that the results of such an adjustment would produce a minimal tax change for federal purposes because of correlative or offsetting adjustments or for other reasons, or if substantially the same federal tax result was obtained under other sections of the Internal Revenue Code. No inference shall be drawn from an Internal Revenue Service failure to audit international transactions pursuant to Section 482 of the Internal Revenue Code or Subchapter N of Chapter 1 of Subtitle A of the Internal Revenue Code and it shall not be presumed that any of those transactions were correctly reported. (c) The amendments made to this section by the act adding this subdivision shall apply to examinations commenced by the Franchise Tax Board on or after the effective date of that act. An examination will be considered commenced when a taxpayer is first contacted by the Franchise Tax Board concerning any examination with respect to the taxpayer’s return. (Amended by Stats. 2007, Ch. 306, Sec. 1. Effective January 1, 2008.)
  69. 25116.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 17. Allocation of Income [25101 - 25141] ( Chapter 17 added by Stats. 1955, Ch. 938. ) ## ARTICLE 1.5. Water's-Edge Election [25110 - 25116] ( Article 1.5 added by Stats. 1986, Ch. 660, Sec. 6. )

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    When this article refers to the Internal Revenue Code, it means Title 26 of the U.S. Code for the taxable period, unless this article specifically says otherwise.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 17. Allocation of Income [25101 - 25141] ( Chapter 17 added by Stats. 1955, Ch. 938. ) ## ARTICLE 1.5. Water's-Edge Election [25110 - 25116] ( Article 1.5 added by Stats. 1986, Ch. 660, Sec. 6. ) ## 25116. Notwithstanding paragraph (1) of subdivision (a) of Section 23051.5, when provisions of this article refer to provisions of the Internal Revenue Code that do not otherwise apply for purposes of Part 10.2 (commencing with Section 18401) or this part, the term “Internal Revenue Code” means Title 26 of the United States Code, including all amendments thereto, as in effect for federal purposes for the taxable period, except as otherwise specifically provided in this article. (Added by Stats. 2003, Ch. 633, Sec. 11. Effective September 30, 2003.)
  70. 2512.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 5. COLLECTION OF TAXES [2501 - 3205] ( Part 5 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Medium of Payment [2501 - 2516] ( Chapter 1 enacted by Stats. 1939, Ch. 154. )

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    This section says when a tax payment remittance is treated as received if sent by mail, an approved delivery service, or certain electronic payment methods.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 5. COLLECTION OF TAXES [2501 - 3205] ( Part 5 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Medium of Payment [2501 - 2516] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## 2512. (a) If a remittance to cover a payment required by law to be made to a taxing agency prior to a specified date and hour is (a) deposited in the United States mail in a sealed envelope, properly addressed with the required postage prepaid, or (b) deposited for shipment with an independent delivery service that is an Internal Revenue Service designated delivery service or has been approved by the tax collector, in a sealed envelope or package, properly addressed with the required fee prepaid, delivery of which shall not be later than 5 p.m. on the next business day after the effective delinquent date, the remittance shall be deemed received on the date shown by the post office cancellation mark stamped upon the envelope containing the remittance, or the independent delivery service shipment date shown on the packing slip or air bill attached to the outside of the envelope or package containing the remittance, or, in the absence of any of the aforementioned dates, on the date received by the county treasurer-tax collector, or on the date it was mailed if proof satisfactory to the tax collector establishes that the mailing occurred on an earlier date. The taxing agency is not required to accept a payment actually received in the mail if it is received more than 30 days after the date and time set by law for the payment. (b) If a remittance to cover a payment, required by law to be made to a taxing agency prior to a specified date and hour, is made by an electronic payment option, such as wire transfer, telephoned credit card, or electronic internet means, the remittance shall be deemed received on the date the transaction was completed by the taxpayer, if the remittance was made on the taxing agency’s authorized internet website or via the taxing agency’s authorized telephone number. Proof of completion of the transaction in the form of a confirmation number or other convincing evidence shall be presented by the taxpayer to the satisfaction of the tax collector. This subdivision does not apply to payments by electronic fund transfer as provided in Sections 2503.1 and 2503.2. (c) This section does not, for purposes of applying subdivision (a) of Section 3707, apply to a remittance sent by mail, by independent delivery service, or by electronic payment option for the redemption of tax-defaulted property. (Amended by Stats. 2025, Ch. 462, Sec. 1. (SB 863) Effective January 1, 2026.)
  71. 25120.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 17. Allocation of Income [25101 - 25141] ( Chapter 17 added by Stats. 1955, Ch. 938. ) ## ARTICLE 2. Uniform Division of Income for Tax Purposes Act [25120 - 25141] ( Article 2 added by Stats. 1966, Ch. 2. )

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    This section defines key tax terms used in the allocation of income rules, including business income, commercial domicile, compensation, nonbusiness income, sales, gross receipts, and state.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 17. Allocation of Income [25101 - 25141] ( Chapter 17 added by Stats. 1955, Ch. 938. ) ## ARTICLE 2. Uniform Division of Income for Tax Purposes Act [25120 - 25141] ( Article 2 added by Stats. 1966, Ch. 2. ) ## 25120. As used in Sections 25120 to 25139, inclusive, which shall hereafter be referred to as “this act,” unless the context otherwise requires: (a) “Business income” means income arising from transactions and activity in the regular course of the taxpayer’s trade or business and includes income from tangible and intangible property if the acquisition, management, and disposition of the property constitute integral parts of the taxpayer’s regular trade or business operations. (b) “Commercial domicile” means the principal place from which the trade or business of the taxpayer is directed or managed. (c) “Compensation” means wages, salaries, commissions and any other form of remuneration paid to employees for personal services. (d) “Nonbusiness income” means all income other than business income. (e) For taxable years beginning before January 1, 2011, “sales” means all gross receipts of the taxpayer not allocated under Sections 25123 to 25127, inclusive. (f) For taxable years beginning on or after January 1, 2011: (1) “Sales” means all gross receipts of the taxpayer not allocated under Sections 25123 to 25127, inclusive. (2) “Gross receipts” means the gross amounts realized (the sum of money and the fair market value of other property or services received) on the sale or exchange of property, the performance of services, or the use of property or capital (including rents, royalties, interest, and dividends) in a transaction that produces business income, in which the income, gain, or loss is recognized (or would be recognized if the transaction were in the United States) under the Internal Revenue Code, as applicable for purposes of this part. Amounts realized on the sale or exchange of property shall not be reduced by the cost of goods sold or the basis of property sold. Gross receipts, even if business income, shall not include the following items: (A) Repayment, maturity, or redemption of the principal of a loan, bond, mutual fund, certificate of deposit, or similar marketable instrument. (B) The principal amount received under a repurchase agreement or other transaction properly characterized as a loan. (C) Proceeds from issuance of the taxpayer’s own stock or from sale of treasury stock. (D) Damages and other amounts received as the result of litigation. (E) Property acquired by an agent on behalf of another. (F) Tax refunds and other tax benefit recoveries. (G) Pension reversions. (H) Contributions to capital (except for sales of securities by securities dealers). (I) Income from discharge of indebtedness. (J) Amounts realized from exchanges of inventory that are not recognized under the Internal Revenue Code. (K) Amounts received from transactions in intangible assets held in connection with a treasury function of the taxpayer’s unitary business and the gross receipts and overall net gains from the maturity, redemption, sale, exchange, or other disposition of those intangible assets. For purposes of this subparagraph, “treasury function” means the pooling, management, and investment of intangible assets for the purpose of satisfying the cash flow needs of the taxpayer’s trade or business, such as providing liquidity for a taxpayer’s business cycle, providing a reserve for business contingencies, and business acquisitions, and also includes the use of futures contracts and options contracts to hedge foreign currency fluctuations. A taxpayer principally engaged in the trade or business of purchasing and selling intangible assets of the type typically held in a taxpayer’s treasury function, such as a registered broker-dealer, is not performing a treasury function, for purposes of this subparagraph, with respect to income so produced. (L) Amounts received from hedging transactions involving intangible assets. A “hedging transaction” means a transaction related to the taxpayer’s trading function involving futures and options transactions for the purpose of hedging price risk of the products or commodities consumed, produced, or sold by the taxpayer. (3) Exclusion of an item from the definition of “gross receipts” shall not be determinative of its character as business or nonbusiness income. (4) The changes to this section by the act adding this sentence pertaining to taxable years beginning before January 1, 2011, constitute clarifying, nonsubstantive changes. (g) “State” means any state of the United States, the District of Columbia, the Commonwealth of Puerto Rico, any territory or possession of the United States, and any foreign country or political subdivision thereof. (Amended by Stats. 2009, 3rd Ex. Sess., Ch. 17, Sec. 10. Effective February 20, 2009.)
  72. 25121.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 17. Allocation of Income [25101 - 25141] ( Chapter 17 added by Stats. 1955, Ch. 938. ) ## ARTICLE 2. Uniform Division of Income for Tax Purposes Act [25120 - 25141] ( Article 2 added by Stats. 1966, Ch. 2. )

    Verify source ↗

    A taxpayer with business income taxable both inside and outside the state must allocate and apportion its net income under this act.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 17. Allocation of Income [25101 - 25141] ( Chapter 17 added by Stats. 1955, Ch. 938. ) ## ARTICLE 2. Uniform Division of Income for Tax Purposes Act [25120 - 25141] ( Article 2 added by Stats. 1966, Ch. 2. ) ## 25121. Any taxpayer having income from business activity which is taxable both within and without this state shall allocate and apportion its net income as provided in this act. (Added by Stats. 1966, Ch. 2.)
  73. 25122.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 17. Allocation of Income [25101 - 25141] ( Chapter 17 added by Stats. 1955, Ch. 938. ) ## ARTICLE 2. Uniform Division of Income for Tax Purposes Act [25120 - 25141] ( Article 2 added by Stats. 1966, Ch. 2. )

    Verify source ↗

    A taxpayer is treated as taxable in another state for income allocation and apportionment purposes if it is subject to certain state taxes there, or if the other state has the power to tax it on net income.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 17. Allocation of Income [25101 - 25141] ( Chapter 17 added by Stats. 1955, Ch. 938. ) ## ARTICLE 2. Uniform Division of Income for Tax Purposes Act [25120 - 25141] ( Article 2 added by Stats. 1966, Ch. 2. ) ## 25122. For purposes of allocation and apportionment of income under this act, a taxpayer is taxable in another state if (a) in that state it is subject to a net income tax, a franchise tax measured by net income, a franchise tax for the privilege of doing business, or a corporate stock tax, or (b) that state has jurisdiction to subject the taxpayer to a net income tax regardless of whether, in fact, the state does or does not. (Added by Stats. 1966, Ch. 2.)
  74. 25123.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 17. Allocation of Income [25101 - 25141] ( Chapter 17 added by Stats. 1955, Ch. 938. ) ## ARTICLE 2. Uniform Division of Income for Tax Purposes Act [25120 - 25141] ( Article 2 added by Stats. 1966, Ch. 2. )

    Verify source ↗

    Nonbusiness income from certain rents, royalties, capital gains, interest, dividends, and patent or copyright royalties must be allocated under Sections 25124 through 25127.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 17. Allocation of Income [25101 - 25141] ( Chapter 17 added by Stats. 1955, Ch. 938. ) ## ARTICLE 2. Uniform Division of Income for Tax Purposes Act [25120 - 25141] ( Article 2 added by Stats. 1966, Ch. 2. ) ## 25123. Rents and royalties from real or tangible personal property, capital gains, interest, dividends, or patent or copyright royalties, to the extent that they constitute nonbusiness income, shall be allocated as provided in Sections 25124 through 25127 of this act. (Added by Stats. 1966, Ch. 2.)
  75. 25124.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 17. Allocation of Income [25101 - 25141] ( Chapter 17 added by Stats. 1955, Ch. 938. ) ## ARTICLE 2. Uniform Division of Income for Tax Purposes Act [25120 - 25141] ( Article 2 added by Stats. 1966, Ch. 2. )

    Verify source ↗

    Rents and royalties from property are allocated to this state under the rule in section 25124.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 17. Allocation of Income [25101 - 25141] ( Chapter 17 added by Stats. 1955, Ch. 938. ) ## ARTICLE 2. Uniform Division of Income for Tax Purposes Act [25120 - 25141] ( Article 2 added by Stats. 1966, Ch. 2. ) ## 25124. (a) Net rents and royalties from real property located in this state are allocable to this state. (b) Net rent and royalties from tangible personal property are allocable to this state: (1) If and to the extent that the property is utilized in this state, or (2) In their entirety if the taxpayer’s commercial domicile is in this state and the taxpayer is not organized under the laws of or taxable in the state in which the property is utilized. (c) The extent of utilization of tangible personal property in a state is determined by multiplying the rents and royalties by a fraction, the numerator of which is the number of days of physical location of the property in the state during the rental or royalty period in the taxable year and the denominator of which is the number of days of physical location of the property everywhere during all rental or royalty periods in the taxable year. If the physical location of the property during the rental or royalty period is unknown or unascertainable by the taxpayer, tangible personal property is utilized in the state in which the property was located at the time the rental or royalty payer obtained possession. (Amended by Stats. 2000, Ch. 862, Sec. 221. Effective January 1, 2001.)
  76. 25125.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 17. Allocation of Income [25101 - 25141] ( Chapter 17 added by Stats. 1955, Ch. 938. ) ## ARTICLE 2. Uniform Division of Income for Tax Purposes Act [25120 - 25141] ( Article 2 added by Stats. 1966, Ch. 2. )

    Verify source ↗

    Capital gains and losses from certain property sales are allocable to this state under the listed rules.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 17. Allocation of Income [25101 - 25141] ( Chapter 17 added by Stats. 1955, Ch. 938. ) ## ARTICLE 2. Uniform Division of Income for Tax Purposes Act [25120 - 25141] ( Article 2 added by Stats. 1966, Ch. 2. ) ## 25125. (a) Capital gains and losses from sales of real property located in this state are allocable to this state. (b) Capital gains and losses from sales of tangible personal property are allocable to this state if: (1) The property had a situs in this state at the time of the sale, or (2) The taxpayer’s commercial domicile is in this state and the taxpayer is not taxable in the state in which the property had a situs. (c) Except in the case of the sale of a partnership interest, capital gains and losses from sales of intangible personal property are allocable to this state if the taxpayer’s commercial domicile is in this state. (d) Gain or loss on the sale of a partnership interest is allocable to this state in the ratio of the original cost of partnership tangible property in the state to the original cost of partnership tangible property everywhere, determined at the time of the sale. In the event that more than 50 percent of the value of partnership’s assets consist of intangibles, gain or loss from the sale of the partnership interest is allocated to this state in accordance with the sales factor of the partnership for its first full tax period immediately preceding the tax period of the partnership during which the partnership interest was sold. (Amended by Stats. 1988, Ch. 1170, Sec. 2. Effective September 22, 1988. Operative January 1, 1989, by Sec. 3 of Ch. 1170.)
  77. 25126.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 17. Allocation of Income [25101 - 25141] ( Chapter 17 added by Stats. 1955, Ch. 938. ) ## ARTICLE 2. Uniform Division of Income for Tax Purposes Act [25120 - 25141] ( Article 2 added by Stats. 1966, Ch. 2. )

    Verify source ↗

    Interest and dividends are allocable to this state when the taxpayer’s commercial domicile is in this state.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 17. Allocation of Income [25101 - 25141] ( Chapter 17 added by Stats. 1955, Ch. 938. ) ## ARTICLE 2. Uniform Division of Income for Tax Purposes Act [25120 - 25141] ( Article 2 added by Stats. 1966, Ch. 2. ) ## 25126. Interest and dividends are allocable to this state if the taxpayer’s commercial domicile is in this state. (Added by Stats. 1966, Ch. 2.)
  78. 25127.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 17. Allocation of Income [25101 - 25141] ( Chapter 17 added by Stats. 1955, Ch. 938. ) ## ARTICLE 2. Uniform Division of Income for Tax Purposes Act [25120 - 25141] ( Article 2 added by Stats. 1966, Ch. 2. )

    Verify source ↗

    Patent and copyright royalties are allocated to this state when the patent or copyright is used here, or in some cases when the taxpayer is commercially domiciled here.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 17. Allocation of Income [25101 - 25141] ( Chapter 17 added by Stats. 1955, Ch. 938. ) ## ARTICLE 2. Uniform Division of Income for Tax Purposes Act [25120 - 25141] ( Article 2 added by Stats. 1966, Ch. 2. ) ## 25127. (a) Patent and copyright royalties are allocable to this state: (1) If and to the extent that the patent or copyright is utilized by the payor in this state, or (2) If and to the extent that the patent or copyright is utilized by the payor in a state in which the taxpayer is not taxable and the taxpayer’s commercial domicile is in this state. (b) A patent is utilized in a state to the extent that it is employed in production, fabrication, manufacturing, or other processing in the state or to the extent that a patented product is produced in the state. If the basis of receipts from patent royalties does not permit allocation to states or if the accounting procedures do not reflect states of utilization, the patent is utilized in the state in which the taxpayer’s commercial domicile is located. (c) A copyright is utilized in a state to the extent that printing or other publication originates in the state. If the basis of receipts from copyright royalties does not permit allocation to states or if the accounting procedures do not reflect states of utilization, the copyright is utilized in the state in which the taxpayer’s commercial domicile is located. (Added by Stats. 1966, Ch. 2.)
  79. 25128.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 17. Allocation of Income [25101 - 25141] ( Chapter 17 added by Stats. 1955, Ch. 938. ) ## ARTICLE 2. Uniform Division of Income for Tax Purposes Act [25120 - 25141] ( Article 2 added by Stats. 1966, Ch. 2. )

    Verify source ↗

    This section sets formulas for apportioning business income to California and defines when a different formula applies for certain businesses.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 17. Allocation of Income [25101 - 25141] ( Chapter 17 added by Stats. 1955, Ch. 938. ) ## ARTICLE 2. Uniform Division of Income for Tax Purposes Act [25120 - 25141] ( Article 2 added by Stats. 1966, Ch. 2. ) ## 25128. (a) Notwithstanding Section 38006, for taxable years beginning before January 1, 2013, all business income shall be apportioned to this state by multiplying the business income by a fraction, the numerator of which is the property factor plus the payroll factor plus twice the sales factor, and the denominator of which is four, except as provided in subdivision (b) or (c). (b) If an apportioning trade or business derives more than 50 percent of its “gross business receipts” from conducting one or more qualified business activities, all business income of the apportioning trade or business shall be apportioned to this state by multiplying business income by a fraction, the numerator of which is the property factor plus the payroll factor plus the sales factor, and the denominator of which is three. (c) For purposes of this section, a “qualified business activity” means the following: (1) For taxable years beginning before January 1, 2025: (A) An agricultural business activity. (B) An extractive business activity. (C) A savings and loan activity. (D) A banking or financial business activity. (2) For taxable years beginning on or after January 1, 2025: (A) An agricultural business activity. (B) An extractive business activity. (d) For purposes of this section: (1) “Gross business receipts” means gross receipts described in subdivision (e) or (f) of Section 25120, other than gross receipts from sales or other transactions within an apportioning trade or business between members of a group of corporations whose income and apportionment factors are required to be included in a combined report under Section 25101, limited, if applicable, by Section 25110, whether or not the receipts are excluded from the sales factor by operation of Section 25137. (2) “Agricultural business activity” means activities relating to any stock, dairy, poultry, fruit, furbearing animal, or truck farm, plantation, ranch, nursery, or range. “Agricultural business activity” also includes activities relating to cultivating the soil or raising or harvesting any agricultural or horticultural commodity, including, but not limited to, the raising, shearing, feeding, caring for, training, or management of animals on a farm as well as the handling, drying, packing, grading, or storing on a farm any agricultural or horticultural commodity in its unmanufactured state, but only if the owner, tenant, or operator of the farm regularly produces more than one-half of the commodity so treated. (3) “Extractive business activity” means activities relating to the production, refining, or processing of oil, natural gas, or mineral ore. (4) “Savings and loan activity” means any activities performed by savings and loan associations or savings banks that have been chartered by federal or state law. (5) “Banking or financial business activity” means activities attributable to dealings in money or moneyed capital in substantial competition with the business of national banks. (6) “Apportioning trade or business” means a distinct trade or business whose business income is required to be apportioned under Sections 25101 and 25120, limited, if applicable, by Section 25110, using the same denominator for each of the applicable payroll, property, and sales factors. (7) Paragraph (4) of subdivision (c) shall apply only if the Franchise Tax Board adopts the Proposed Multistate Tax Commission Formula for the Uniform Apportionment of Net Income from Financial Institutions, or its substantial equivalent, and shall become operative upon the same operative date as the adopted formula. (8) In any case where the income and apportionment factors of two or more savings associations or corporations are required to be included in a combined report under Section 25101, limited, if applicable, by Section 25110, both of the following shall apply: (A) The application of the more than 50 percent test of subdivision (b) shall be made with respect to the “gross business receipts” of the entire apportioning trade or business of the group. (B) The entire business income of the group shall be apportioned in accordance with either subdivision (a) or (b), or Section 25128.7, as applicable. (Amended by Stats. 2025, Ch. 17, Sec. 22. (SB 132) Effective June 27, 2025. Note: This section was amended on Nov. 6, 2012, by initiative Prop. 39.)
  80. 25128.7.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 17. Allocation of Income [25101 - 25141] ( Chapter 17 added by Stats. 1955, Ch. 938. ) ## ARTICLE 2. Uniform Division of Income for Tax Purposes Act [25120 - 25141] ( Article 2 added by Stats. 1966, Ch. 2. )

    Verify source ↗

    For taxable years beginning on or after January 1, 2013, an apportioning trade or business must apportion all business income to this state using the sales factor, except for businesses described in subdivision (b) of Section 25128.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 17. Allocation of Income [25101 - 25141] ( Chapter 17 added by Stats. 1955, Ch. 938. ) ## ARTICLE 2. Uniform Division of Income for Tax Purposes Act [25120 - 25141] ( Article 2 added by Stats. 1966, Ch. 2. ) ## 25128.7. Notwithstanding Section 38006, for taxable years beginning on or after January 1, 2013, all business income of an apportioning trade or business, other than an apportioning trade or business described in subdivision (b) of Section 25128, shall be apportioned to this state by multiplying the business income by the sales factor. (Added November 6, 2012, by initiative Proposition 39, Sec. 6.)
  81. 25128.9.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 17. Allocation of Income [25101 - 25141] ( Chapter 17 added by Stats. 1955, Ch. 938. ) ## ARTICLE 2. Uniform Division of Income for Tax Purposes Act [25120 - 25141] ( Article 2 added by Stats. 1966, Ch. 2. )

    Verify source ↗

    Income or loss from a transaction or activity that is not included in net income subject to apportionment must be excluded from the apportionment formulas, and the Franchise Tax Board may adopt regulations to carry out this section.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 17. Allocation of Income [25101 - 25141] ( Chapter 17 added by Stats. 1955, Ch. 938. ) ## ARTICLE 2. Uniform Division of Income for Tax Purposes Act [25120 - 25141] ( Article 2 added by Stats. 1966, Ch. 2. ) ## 25128.9. (a) The Legislature finds and declares all of the following: (1) In 1966, the California Legislature enacted the Uniform Division of Income for Tax Purposes Act under Sections 25120 through 25139, inclusive, of the Revenue and Taxation Code. (2) That act provides for the allocation and apportionment of income of taxpayer having income from business activities which is taxable both within and without the state. (3) On April 28, 2006, the Franchise Tax Board issued Franchise Tax Board Legal Ruling 2006-1 (the Legal Ruling), regarding the treatment of apportionment factors attributable to income exempt from income tax under the Corporation Tax Law. (4) It is the intent of the Legislature that the Legal Ruling shall apply with respect to apportionment factors attributable to the income of taxpayers subject to tax under the Corporation Tax Law. (5) It is the intent of the Legislature that this section does not constitute a change in, but is declaratory of, existing law. (6) It is the intent of the Legislature that the clarification in this section apply to any apportionment formula currently and formerly allowed under this article. (b) (1) A transaction or activity, to the extent that it generates income or loss not included in “net income,” as defined in Section 24341, subject to apportionment, shall be excluded from the apportionment formulas under this part, including Sections 25128, 25128.7, and 25141, and former Section 25128.5. (2) For the purposes of this section, “not included in ‘net income,’” means income from transactions and activities that is not included in net income subject to apportionment for any reason, including, but not limited to, exclusion, deduction, exemption, elimination, or nonrecognition. (c) (1) The Franchise Tax Board may adopt regulations that are necessary or appropriate to carry out the purpose of this section, which is to prevent inclusion within the apportionment formula of transactions and activities that give rise to income that is not subject to apportionment. (2) The Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code) shall not apply to any regulation, standard, criterion, procedure, determination, rule, notice, guideline, or any other guidance established or issued by the Franchise Tax Board pursuant to this section. (d) This section shall apply to taxable years beginning before, on, or after the effective date of the act adding this section. (Added by Stats. 2024, Ch. 34, Sec. 41. (SB 167) Effective June 27, 2024.)
  82. 25129.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 17. Allocation of Income [25101 - 25141] ( Chapter 17 added by Stats. 1955, Ch. 938. ) ## ARTICLE 2. Uniform Division of Income for Tax Purposes Act [25120 - 25141] ( Article 2 added by Stats. 1966, Ch. 2. )

    Verify source ↗

    The property factor is a fraction based on the average value of the taxpayer’s real and tangible personal property used in California compared with all such property used during the taxable year.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 17. Allocation of Income [25101 - 25141] ( Chapter 17 added by Stats. 1955, Ch. 938. ) ## ARTICLE 2. Uniform Division of Income for Tax Purposes Act [25120 - 25141] ( Article 2 added by Stats. 1966, Ch. 2. ) ## 25129. The property factor is a fraction, the numerator of which is the average value of the taxpayer’s real and tangible personal property owned or rented and used in this state during the taxable year and the denominator of which is the average value of all the taxpayer’s real and tangible personal property owned or rented and used during the taxable year. (Amended by Stats. 2000, Ch. 862, Sec. 222. Effective January 1, 2001.)
  83. 2513.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 5. COLLECTION OF TAXES [2501 - 3205] ( Part 5 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Medium of Payment [2501 - 2516] ( Chapter 1 enacted by Stats. 1939, Ch. 154. )

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    Mailing certain tax filings can count as filing on the postmark date, or earlier if satisfactory proof shows an earlier mailing date.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 5. COLLECTION OF TAXES [2501 - 3205] ( Part 5 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Medium of Payment [2501 - 2516] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## 2513. If an application, tax statement or claim for credit or refund required by law to be filed with a taxing agency on or before a specified date is filed with the taxing agency through the United States mail, properly addressed with the required postage prepaid, it shall be deemed filed on the date shown by the post office cancellation mark stamped on the envelope containing it, or on the date it was mailed if proof satisfactory to the tax collector establishes that the mailing occurred on an earlier date. If an application, tax statement or claim for credit or refund required by law to be filed with the taxing agency on or before a specified time on a specified date is sent through the United States mail, properly addressed with the required postage prepaid, and the cancellation mark is placed on the envelope after it is deposited in the mail: (a) Where the cancellation mark shows both date and time, the application, tax statement or claim for credit or refund shall be deemed filed on the date shown by the cancellation mark and by the time specified by law for that date. (b) Where the cancellation mark shows only the date, the application, tax statement or claim for credit or refund shall be deemed filed within the time and date specified when the cancellation mark bears a date on or before the specified date of filing. (Amended by Stats. 1974, Ch. 1101.)
  84. 25130.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 17. Allocation of Income [25101 - 25141] ( Chapter 17 added by Stats. 1955, Ch. 938. ) ## ARTICLE 2. Uniform Division of Income for Tax Purposes Act [25120 - 25141] ( Article 2 added by Stats. 1966, Ch. 2. )

    Verify source ↗

    Tax valuation rule: property owned by the taxpayer is valued at original cost, and property rented by the taxpayer is valued at eight times the net annual rental rate.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 17. Allocation of Income [25101 - 25141] ( Chapter 17 added by Stats. 1955, Ch. 938. ) ## ARTICLE 2. Uniform Division of Income for Tax Purposes Act [25120 - 25141] ( Article 2 added by Stats. 1966, Ch. 2. ) ## 25130. Property owned by the taxpayer is valued at its original cost. Property rented by the taxpayer is valued at eight times the net annual rental rate. Net annual rental rate is the annual rental rate paid by the taxpayer less any annual rental rate received by the taxpayer from subrentals. (Added by Stats. 1966, Ch. 2.)
  85. 25131.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 17. Allocation of Income [25101 - 25141] ( Chapter 17 added by Stats. 1955, Ch. 938. ) ## ARTICLE 2. Uniform Division of Income for Tax Purposes Act [25120 - 25141] ( Article 2 added by Stats. 1966, Ch. 2. )

    Verify source ↗

    Property value is averaged using the values at the start and end of the taxable year, and the Franchise Tax Board can require monthly averaging if needed to reflect the property’s average value.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 17. Allocation of Income [25101 - 25141] ( Chapter 17 added by Stats. 1955, Ch. 938. ) ## ARTICLE 2. Uniform Division of Income for Tax Purposes Act [25120 - 25141] ( Article 2 added by Stats. 1966, Ch. 2. ) ## 25131. The average value of property shall be determined by averaging the values at the beginning and ending of the taxable year but the Franchise Tax Board may require the averaging of monthly values during the taxable year if reasonably required to reflect properly the average value of the taxpayer’s property. (Amended by Stats. 2000, Ch. 862, Sec. 223. Effective January 1, 2001.)
  86. 25132.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 17. Allocation of Income [25101 - 25141] ( Chapter 17 added by Stats. 1955, Ch. 938. ) ## ARTICLE 2. Uniform Division of Income for Tax Purposes Act [25120 - 25141] ( Article 2 added by Stats. 1966, Ch. 2. )

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    The payroll factor is defined as a fraction based on compensation paid in-state and everywhere during the taxable year.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 17. Allocation of Income [25101 - 25141] ( Chapter 17 added by Stats. 1955, Ch. 938. ) ## ARTICLE 2. Uniform Division of Income for Tax Purposes Act [25120 - 25141] ( Article 2 added by Stats. 1966, Ch. 2. ) ## 25132. The payroll factor is a fraction, the numerator of which is the total amount paid in this state during the taxable year by the taxpayer for compensation, and the denominator of which is the total compensation paid everywhere during the taxable year. (Amended by Stats. 2000, Ch. 862, Sec. 224. Effective January 1, 2001.)
  87. 25133.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 17. Allocation of Income [25101 - 25141] ( Chapter 17 added by Stats. 1955, Ch. 938. ) ## ARTICLE 2. Uniform Division of Income for Tax Purposes Act [25120 - 25141] ( Article 2 added by Stats. 1966, Ch. 2. )

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    This section says when compensation is treated as paid in California for tax purposes.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 17. Allocation of Income [25101 - 25141] ( Chapter 17 added by Stats. 1955, Ch. 938. ) ## ARTICLE 2. Uniform Division of Income for Tax Purposes Act [25120 - 25141] ( Article 2 added by Stats. 1966, Ch. 2. ) ## 25133. Compensation is paid in this state if: (a) The individual’s service is performed entirely within the state; or (b) The individual’s service is performed both within and without the state, but the service performed without the state is incidental to the individual’s service within the state; or (c) Some of the service is performed in the state and (1) the base of operations or, if there is no base of operations, the place from which the service is directed or controlled is in the state, or (2) the base of operations or the place from which the service is directed or controlled is not in any state in which some part of the service is performed, but the individual’s residence is in this state. (Added by Stats. 1966, Ch. 2.)
  88. 25134.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 17. Allocation of Income [25101 - 25141] ( Chapter 17 added by Stats. 1955, Ch. 938. ) ## ARTICLE 2. Uniform Division of Income for Tax Purposes Act [25120 - 25141] ( Article 2 added by Stats. 1966, Ch. 2. )

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    This section says the sales factor is a fraction based on the taxpayer’s sales in this state compared with sales everywhere during the taxable year.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 17. Allocation of Income [25101 - 25141] ( Chapter 17 added by Stats. 1955, Ch. 938. ) ## ARTICLE 2. Uniform Division of Income for Tax Purposes Act [25120 - 25141] ( Article 2 added by Stats. 1966, Ch. 2. ) ## 25134. The sales factor is a fraction, the numerator of which is the total sales of the taxpayer in this state during the taxable year, and the denominator of which is the total sales of the taxpayer everywhere during the taxable year. (Amended by Stats. 2000, Ch. 862, Sec. 225. Effective January 1, 2001.)
  89. 25135.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 17. Allocation of Income [25101 - 25141] ( Chapter 17 added by Stats. 1955, Ch. 938. ) ## ARTICLE 2. Uniform Division of Income for Tax Purposes Act [25120 - 25141] ( Article 2 added by Stats. 1966, Ch. 2. )

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    This section says when sales of tangible personal property are treated as sales in California for sales-factor purposes, and it lets the Franchise Tax Board issue regulations to carry out the section.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 17. Allocation of Income [25101 - 25141] ( Chapter 17 added by Stats. 1955, Ch. 938. ) ## ARTICLE 2. Uniform Division of Income for Tax Purposes Act [25120 - 25141] ( Article 2 added by Stats. 1966, Ch. 2. ) ## 25135. (a) Sales of tangible personal property are in this state if: (1) The property is delivered or shipped to a purchaser, other than the United States government, within this state regardless of the f.o.b. point or other conditions of the sale. (2) The property is shipped from an office, store, warehouse, factory, or other place of storage in this state and (A) the purchaser is the United States government or (B) the taxpayer is not taxable in the state of the purchaser. (b) For taxable years beginning on or after January 1, 2011, for purposes of determining whether sales are in this state and included in the numerator of the sales factor, all sales of the combined reporting group properly assigned to this state under this section shall be included in the sales factor numerator for this state regardless of whether the member of the combined reporting group making the sale is subject to the taxes imposed under Chapter 2 (commencing with Section 23101) or Chapter 3 (commencing with Section 23501) of this part. All sales not assigned to this state pursuant to subdivision (a) shall not be included in the sales factor numerator for this state if a member of the combined reporting group of the taxpayer is taxable in the state of the purchaser. (c) The Franchise Tax Board may prescribe regulations as necessary or appropriate to carry out the purposes of this section. (Amended by Stats. 2009, 3rd Ex. Sess., Ch. 17, Sec. 12. Effective February 20, 2009.)
  90. 25136.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 17. Allocation of Income [25101 - 25141] ( Chapter 17 added by Stats. 1955, Ch. 938. ) ## ARTICLE 2. Uniform Division of Income for Tax Purposes Act [25120 - 25141] ( Article 2 added by Stats. 1966, Ch. 2. )

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    This section says when certain sales are treated as being in California for tax purposes, and it lets the Franchise Tax Board issue regulations to carry out the section.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 17. Allocation of Income [25101 - 25141] ( Chapter 17 added by Stats. 1955, Ch. 938. ) ## ARTICLE 2. Uniform Division of Income for Tax Purposes Act [25120 - 25141] ( Article 2 added by Stats. 1966, Ch. 2. ) ## 25136. (a) Notwithstanding Section 38006, for taxable years beginning on or after January 1, 2013, sales, other than sales of tangible personal property, are in this state if: (1) Sales from services are in this state to the extent the purchaser of the service received the benefit of the services in this state. (2) Sales from intangible property are in this state to the extent the property is used in this state. In the case of marketable securities, sales are in this state if the customer is in this state. (3) Sales from the sale, lease, rental, or licensing of real property are in this state if the real property is located in this state. (4) Sales from the rental, lease, or licensing of tangible personal property are in this state if the property is located in this state. (b) The Franchise Tax Board may prescribe regulations as necessary or appropriate to carry out the purposes of this section. (Repealed (in Sec. 7) and added November 6, 2012, by initiative Proposition 39, Sec. 8. Section applicable, by subd. (a), for taxable years beginning on or after January 1, 2013.)
  91. 25136.1.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 17. Allocation of Income [25101 - 25141] ( Chapter 17 added by Stats. 1955, Ch. 938. ) ## ARTICLE 2. Uniform Division of Income for Tax Purposes Act [25120 - 25141] ( Article 2 added by Stats. 1966, Ch. 2. )

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    Qualified taxpayers using Section 25128.7 must apply this section’s special sales-assignment rules, including assigning only 50% of certain qualified sales to California.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 17. Allocation of Income [25101 - 25141] ( Chapter 17 added by Stats. 1955, Ch. 938. ) ## ARTICLE 2. Uniform Division of Income for Tax Purposes Act [25120 - 25141] ( Article 2 added by Stats. 1966, Ch. 2. ) ## 25136.1. (a) For taxable years beginning on or after January 1, 2013, a qualified taxpayer that apportions its business income under Section 25128.7 shall apply the following provisions: (1) Notwithstanding Section 25137, qualified sales assigned to this state shall be equal to 50 percent of the amount of qualified sales that would be assigned to this state pursuant to Section 25136 but for the application of this section. The remaining 50 percent shall not be assigned to this state. (2) All other sales shall be assigned pursuant to Section 25136. (b) For purposes of this section: (1) “Qualified taxpayer” means a member, as defined in paragraph (10) of subdivision (b) of Section 25106.5 of Title 18 of the California Code of Regulations as in effect on the effective date of the act adding this section, of a combined reporting group that is also a qualified group. (2) “Qualified group” means a combined reporting group, as defined in paragraph (3) of subdivision (b) of Section 25106.5 of Title 18 of the California Code of Regulations, as in effect on the effective date of the act adding this section, that satisfies the following conditions: (A) Has satisfied the minimum investment requirement for the taxable year. (B) For the combined reporting group’s taxable year beginning in calendar year 2006, the combined reporting group derived more than 50 percent of its United States network gross business receipts from the operation of one or more cable systems. (C) For purposes of satisfying the requirements of subparagraph (B), the following rules shall apply: (i) If a member of the combined reporting group for the taxable year was not a member of the same combined reporting group for the taxable year beginning in calendar year 2006, the gross business receipts of that nonincluded member shall be included in determining the combined reporting group’s gross business receipts for its taxable year beginning in calendar year 2006 as if the nonincluded member were a member of the combined reporting group for the taxable year beginning in calendar year 2006. (ii) The gross business receipts shall include the gross business receipts of a qualified partnership, but only to the extent of a member’s interest in the partnership. (3) “Cable system” and “network” shall have the same meaning as defined in Section 5830 of the Public Utilities Code, as in effect on the effective date of the act adding this section. “Network services” means video, cable, voice, or data services. (4) “Gross business receipts” means gross receipts as defined in paragraph (2) of subdivision (f) of Section 25120 (other than gross receipts from sales or other transactions between or among members of a combined reporting group, limited, if applicable, by Section 25110). (5) “Minimum investment requirement” means qualified expenditures of not less than two hundred fifty million dollars ($250,000,000) by a combined reporting group during the calendar year that includes the beginning of the taxable year. (6) “Qualified expenditures” means any combination of expenditures attributable to this state for tangible property, payroll, services, franchise fees, or any intangible property distribution or other rights, paid or incurred by or on behalf of a member of a combined reporting group. (A) An expenditure for other than tangible property shall be attributable to this state if the member of the combined reporting group received the benefit of the purchase or expenditure in this state. (B) A purchase of or expenditure for tangible property shall be attributable to this state if the property is placed in service in this state. (C) Qualified expenditures shall include expenditures by a combined reporting group for property or services purchased, used, or rendered by independent contractors in this state. (D) Qualified expenditures shall also include expenditures by a qualified partnership, but only to the extent of the member’s interest in the partnership. (7) “Qualified partnership” means a partnership if the partnership’s income and apportionment factors are included in the income and apportionment factors of a member of the combined reporting group, but only to the extent of the member’s interest in the partnership. (8) “Qualified sales” means gross business receipts from the provision of any network services, other than gross business receipts from the sale or rental of customer premises equipment. “Qualified sales” shall include qualified sales by a qualified partnership, but only to the extent of a member’s interest in the partnership. (c) The rules in this section with respect to qualified sales by a qualified partnership are intended to be consistent with the rules for partnerships under paragraph (3) of subdivision (f) of Section 25137-1 of Title 18 of the California Code of Regulations. (Added November 6, 2012, by initiative Proposition 39, Sec. 9. Note: Prop. 39 is titled the California Clean Energy Jobs Act.)
  92. 25137.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 17. Allocation of Income [25101 - 25141] ( Chapter 17 added by Stats. 1955, Ch. 938. ) ## ARTICLE 2. Uniform Division of Income for Tax Purposes Act [25120 - 25141] ( Article 2 added by Stats. 1966, Ch. 2. )

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    If the normal allocation rules do not fairly reflect a taxpayer’s California business activity, the taxpayer may ask for alternative methods, and the Franchise Tax Board may require them if reasonable.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 17. Allocation of Income [25101 - 25141] ( Chapter 17 added by Stats. 1955, Ch. 938. ) ## ARTICLE 2. Uniform Division of Income for Tax Purposes Act [25120 - 25141] ( Article 2 added by Stats. 1966, Ch. 2. ) ## 25137. If the allocation and apportionment provisions of this act do not fairly represent the extent of the taxpayer’s business activity in this state, the taxpayer may petition for or the Franchise Tax Board may require, in respect to all or any part of the taxpayer’s business activity, if reasonable: (a) Separate accounting; (b) The exclusion of any one or more of the factors; (c) The inclusion of one or more additional factors which will fairly represent the taxpayer’s business activity in this state; or (d) The employment of any other method to effectuate an equitable allocation and apportionment of the taxpayer’s income. (Added by Stats. 1966, Ch. 2.)
  93. 25138.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 17. Allocation of Income [25101 - 25141] ( Chapter 17 added by Stats. 1955, Ch. 938. ) ## ARTICLE 2. Uniform Division of Income for Tax Purposes Act [25120 - 25141] ( Article 2 added by Stats. 1966, Ch. 2. )

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    This section says the act should be interpreted to carry out uniformity with the laws of other states that enact it.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 17. Allocation of Income [25101 - 25141] ( Chapter 17 added by Stats. 1955, Ch. 938. ) ## ARTICLE 2. Uniform Division of Income for Tax Purposes Act [25120 - 25141] ( Article 2 added by Stats. 1966, Ch. 2. ) ## 25138. This act shall be so construed as to effectuate its general purpose to make uniform the law of those states which enact it. Enactment of Article IV of the Multistate Tax Compact (as set forth in Section 38006 of the code) pertaining to the allocation and apportionment of income shall be construed as a reenactment of Sections 25120 to 25137, inclusive, without any inference that a change in interpretation is implied by such enactment. (Amended by Stats. 1974, Ch. 1381.)
  94. 25139.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 17. Allocation of Income [25101 - 25141] ( Chapter 17 added by Stats. 1955, Ch. 938. ) ## ARTICLE 2. Uniform Division of Income for Tax Purposes Act [25120 - 25141] ( Article 2 added by Stats. 1966, Ch. 2. )

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    Sections 25120 to 25139 may be cited as the Uniform Division of Income for Tax Purposes Act.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 17. Allocation of Income [25101 - 25141] ( Chapter 17 added by Stats. 1955, Ch. 938. ) ## ARTICLE 2. Uniform Division of Income for Tax Purposes Act [25120 - 25141] ( Article 2 added by Stats. 1966, Ch. 2. ) ## 25139. Sections 25120 to 25139, inclusive, may be cited as the Uniform Division of Income for Tax Purposes Act. (Added by Stats. 1966, Ch. 2.)
  95. 2514.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 5. COLLECTION OF TAXES [2501 - 3205] ( Part 5 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Medium of Payment [2501 - 2516] ( Chapter 1 enacted by Stats. 1939, Ch. 154. )

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    After the Controller makes certain payments, the tax collector must record that the property taxes were postponed and, in some cases, notify the auditor; the county auditor, treasurer, or disbursing officer must refund the money to the claimant within 60 days of the replicated payment.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 5. COLLECTION OF TAXES [2501 - 3205] ( Part 5 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Medium of Payment [2501 - 2516] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## 2514. (a) Upon receipt of the payment by the Controller described in Section 20602, 20630, 20639.6, or 20640.6, the following shall occur: (1) The tax collector shall maintain a record of the fact that taxes on the property have been postponed. In the case of the secured roll, this information may be entered in that portion of the roll which has been designated for tax default information as required by Section 3439. (2) With respect to a claimant whose property taxes are paid by a lender from an impound, trust, or other type of account described in Section 2954 of the Civil Code, the tax collector shall notify the auditor of the claimant’s name and address, and the duplicate amount of money the Controller paid to the tax collector. The county auditor, treasurer, or disbursing officer shall refund the amount of money, based on the payment by the Controller, to the claimant within 60 days of the replicated payment. (b) The procedures established by this chapter shall not be construed to require a lender to alter the manner in which a lender makes payment of the property taxes of such a claimant. (Amended by Stats. 2018, Ch. 896, Sec. 9. (SB 1130) Effective January 1, 2019.)
  96. 25140.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 17. Allocation of Income [25101 - 25141] ( Chapter 17 added by Stats. 1955, Ch. 938. ) ## ARTICLE 2. Uniform Division of Income for Tax Purposes Act [25120 - 25141] ( Article 2 added by Stats. 1966, Ch. 2. )

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    Accounting procedures must separately show revenues from dividends received by corporations with commercial domiciles in California.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 17. Allocation of Income [25101 - 25141] ( Chapter 17 added by Stats. 1955, Ch. 938. ) ## ARTICLE 2. Uniform Division of Income for Tax Purposes Act [25120 - 25141] ( Article 2 added by Stats. 1966, Ch. 2. ) ## 25140. Accounting procedures shall be adopted which will separately reflect the revenues attributable to dividends received by corporations having commercial domiciles in this state. In view of pending litigation concerning the proper treatment of intercompany dividends, it is not intended by enactment of this act that any inference be drawn from it in such litigation. (Amended by Stats. 1966, 1st Ex. Sess., Ch. 167.)
  97. 25141.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 17. Allocation of Income [25101 - 25141] ( Chapter 17 added by Stats. 1955, Ch. 938. ) ## ARTICLE 2. Uniform Division of Income for Tax Purposes Act [25120 - 25141] ( Article 2 added by Stats. 1966, Ch. 2. )

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    This section defines certain terms and sets special income-allocation rules for professional athletic teams, including how property, payroll, and sales factors are treated and how minimum tax liability is handled.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 17. Allocation of Income [25101 - 25141] ( Chapter 17 added by Stats. 1955, Ch. 938. ) ## ARTICLE 2. Uniform Division of Income for Tax Purposes Act [25120 - 25141] ( Article 2 added by Stats. 1966, Ch. 2. ) ## 25141. (a) For purposes of this section, the following definitions shall apply: (1) “Entity” means an individual, corporation, association, partnership, limited liability company, estate, trust, or any combination thereof. (2) “Person” means an individual or corporation. (3) “Professional athletic team” means any entity which has all of the following characteristics: (A) Employs concurrently during the taxable year five or more persons, who are compensated for being participating members of an athletic team engaging in public contests. (B) Is a member of a league composed of at least five entities which are engaged in the operation of an athletic team and which are located in this and other states or in other countries. (C) Has total minimum paid attendance in the aggregate for all contests wherever played during the taxable year of 40,000 persons. (D) Has minimum gross income in the taxable year of one hundred thousand dollars ($100,000). (b) For purposes of this chapter, a team shall be considered to have its operations based in the state or country in which the team derives its territorial rights under the rules of the league of which it is a member. (c) The business income of a professional athletic team derived directly or indirectly from its operations as a professional athletic team shall be allocated to this state pursuant to the following three-factor formula: (1) Computation of the property factor under Section 25129: (A) For a team that has its operations based in this state, the average value of all real and tangible personal property, wherever located, and owned or rented and used during the taxable year, shall be deemed to have been owned or rented and used in this state during the taxable year. (B) For a team that has its operations based outside of this state, the average value of all real and tangible personal property, wherever located, and owned or rented and used during the taxable year, shall be deemed to have been owned or rented and used outside this state during the taxable year. (2) Computation of the payroll factor under Section 25132: (A) For a team that has its operations based in this state, the total compensation paid everywhere during the taxable year shall be deemed to have been paid in this state during the taxable year. (B) For a team that has its operations based outside of this state, the total compensation paid everywhere during the taxable year shall be deemed to have been paid outside this state during the taxable year. (3) Computation of the sales factor under Section 25134: (A) For a team that has its operations based in this state, the total sales everywhere during the taxable year shall be deemed to have been made in this state during the taxable year. (B) For a team that has its operations based outside of this state, the total sales everywhere during the taxable year shall be deemed to have been made outside this state during the taxable year. (d) If any team that has its operations based in this state is required to allocate or apportion a part of its business income derived directly or indirectly from its operations as a professional athletic team to another state or country by the laws, regulations, or requirements of the other state or country and pays an income or franchise tax measured by income thereon as a result of the allocation or apportionment, then all of the following shall apply: (1) The business income of the team otherwise subject to this section shall be reduced for purposes of this section by the amount of the business income which is allocated or apportioned to and taxed by the other state or country. (2) This section shall not apply to any team in the same league that has its operations based in the other state or country, and the business income of any such team derived directly or indirectly from its operations as a professional athletic team shall be allocated or apportioned to this state in a manner consistent with the method of allocation or apportionment imposed by the other state or country on the business income of the team that has its operations based in this state. (e) For purposes of the minimum tax imposed under Sections 23151 and 23151.1, an entity which operates a professional athletic team shall be treated as a corporation. The liability under Sections 23151 and 23151.1 of any corporation owning any portion or share of an entity shall be satisfied by payment of the minimum tax by that entity, if the corporation is not otherwise doing business in this state. (Amended by Stats. 2000, Ch. 862, Sec. 226. Effective January 1, 2001.)
  98. 2515.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 5. COLLECTION OF TAXES [2501 - 3205] ( Part 5 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Medium of Payment [2501 - 2516] ( Chapter 1 enacted by Stats. 1939, Ch. 154. )

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    The assessor must keep a record of postponed property taxes and the Controller’s ID number, and must tell the Controller within 60 days if the record shows a later change in ownership status.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 5. COLLECTION OF TAXES [2501 - 3205] ( Part 5 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Medium of Payment [2501 - 2516] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## 2515. (a) Upon receiving a copy of the “notice of lien for postponed property taxes” from the Controller, the assessor shall maintain a record of the fact that the taxes on the property have been postponed and the Controller’s identification number and shall, if such record reveals a change in the ownership status of the property subsequent to the date of entry of the postponement information thereon, notify the Controller within 60 days of processing the change in the ownership status in the manner prescribed by the Controller. (b) From the time of recordation of the notice of lien pursuant to Section 16182 of the Government Code, the lien for postponed property taxes shall be deemed to impart constructive notice of the contents thereof to subsequent purchasers, mortgagees, lessees, and other lienors. (Amended by Stats. 2017, Ch. 387, Sec. 19. (SB 205) Effective January 1, 2018.)
  99. 2516.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 5. COLLECTION OF TAXES [2501 - 3205] ( Part 5 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Medium of Payment [2501 - 2516] ( Chapter 1 enacted by Stats. 1939, Ch. 154. )

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    If a transferee fails to file the required change in ownership statement, the assessor or auditor must immediately record the penalty details on the property assessment records.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 5. COLLECTION OF TAXES [2501 - 3205] ( Part 5 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Medium of Payment [2501 - 2516] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## 2516. Upon the failure of a transferee to file a change in ownership statement required by Section 480, the assessor or the auditor shall immediately enter on the assessment records applicable to the real property, the fact that a penalty has been added to the assessment roll and specify the date and amount thereof. (Added by Stats. 1979, Ch. 242.)
  100. 252.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 2. ASSESSMENT [201 - 1367] ( Part 2 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Taxation Base [201 - 287] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 2. Procedure to Claim Exemptions [251 - 261] ( Article 2 enacted by Stats. 1939, Ch. 154. )

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    For a first veterans’ exemption claim, the claimant or certain representatives must appear before the assessor, provide required information, answer questions, and swear the affidavit. Later claims may be filed by mail, and the assessor may ask for additional proof.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 2. ASSESSMENT [201 - 1367] ( Part 2 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Taxation Base [201 - 287] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 2. Procedure to Claim Exemptions [251 - 261] ( Article 2 enacted by Stats. 1939, Ch. 154. ) ## 252. When making the first claim any person claiming the veterans’ exemption, or the spouse, legal guardian, or conservator of such person, or one who has been granted a power of attorney by such person, shall appear before the assessor, shall give all information required and answer all questions in an affidavit prescribed by the State Board of Equalization, and shall subscribe and swear to the affidavit before the assessor. The assessor may require other proof of the facts stated before allowing the exemption. In subsequent years the person claiming the veterans’ exemption, or the spouse, legal guardian, or conservator of such person, or one who has been granted a power of attorney by such person, may file the affidavit under penalty of perjury by mail. Where a claim is filed by a legal guardian or conservator of a person claiming the veterans’ exemption, or one who has been granted a power of attorney by such claimant, the person filing the affidavit shall declare that he has sufficient knowlege of the financial affairs of the claimant to give all information required and answer all questions in the affidavit under penalty of perjury. (Amended by Stats. 1969, Ch. 143.)
  101. 252.1.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 2. ASSESSMENT [201 - 1367] ( Part 2 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Taxation Base [201 - 287] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 2. Procedure to Claim Exemptions [251 - 261] ( Article 2 enacted by Stats. 1939, Ch. 154. )

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    A veterans’ exemption affidavit must state the claimant’s residence, and if it is filed in a county other than the claimant’s county of residence, it must be filed in duplicate and the assessor must send the duplicate to the assessor of the county of residence.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 2. ASSESSMENT [201 - 1367] ( Part 2 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Taxation Base [201 - 287] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 2. Procedure to Claim Exemptions [251 - 261] ( Article 2 enacted by Stats. 1939, Ch. 154. ) ## 252.1. Among other facts, the veterans’ exemption affidavit shall contain a statement, showing the claimant’s residence. When the affidavit is filed in a county other than the county of the claimant’s residence, it shall be filed in duplicate and the assessor shall transmit the duplicate copy to the assessor of the county of residence. (Added by renumbering Section 255.5 by Stats. 1974, Ch. 1107.)
  102. 253.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 2. ASSESSMENT [201 - 1367] ( Part 2 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Taxation Base [201 - 287] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 2. Procedure to Claim Exemptions [251 - 261] ( Article 2 enacted by Stats. 1939, Ch. 154. )

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    This section lets a veterans’ exemption applicant use an affidavit without appearing in person when certain hardships apply, and lets a family member, guardian, or legal representative sign for the applicant in specified cases.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 2. ASSESSMENT [201 - 1367] ( Part 2 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Taxation Base [201 - 287] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 2. Procedure to Claim Exemptions [251 - 261] ( Article 2 enacted by Stats. 1939, Ch. 154. ) ## 253. If, because of active military service of the United States in time of war, sickness, or other cause found to be unavoidable in the judgment of the assessor, an applicant for the veterans’ exemption is unable to attend in person before the assessor, and a deputy is not available to go to the place where the applicant is located, then the applicant may make and subscribe the affidavit before any person authorized to administer an oath. If, during time of war, the applicant is in active military service of the United States or of any nation with which the United States is allied, or is outside of the continental limits of the United States, or if the person entitled to the exemption has a mental health disorder or lacks mental capacity, a member of the applicant’s immediate family or the applicant’s guardian or legal representative, having personal knowledge of the facts required to be set forth, may appear before the assessor and may make and subscribe the affidavit on the applicant’s behalf. (Amended by Stats. 2019, Ch. 9, Sec. 19. (AB 46) Effective January 1, 2020.)
  103. 253.5.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 2. ASSESSMENT [201 - 1367] ( Part 2 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Taxation Base [201 - 287] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 2. Procedure to Claim Exemptions [251 - 261] ( Article 2 enacted by Stats. 1939, Ch. 154. )

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    A person claiming the homeowners’ property tax exemption must file an affidavit with the assessor and provide required information.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 2. ASSESSMENT [201 - 1367] ( Part 2 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Taxation Base [201 - 287] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 2. Procedure to Claim Exemptions [251 - 261] ( Article 2 enacted by Stats. 1939, Ch. 154. ) ## 253.5. Any person claiming the homeowners’ property tax exemption shall submit to the assessor an affidavit, giving any information required by the board. Such information shall include, but shall not be limited to, the name of the person claiming the exemption, the address of the property, and a statement to the effect that the claimant owned and occupied the property as his principal place of residence on the lien date, or that he owns and intends to occupy the property as his principal place of residence on the next succeeding lien date. A claim for the homeowners’ exemption filed by the owner of a dwelling, as defined in Section 218, once granted for the 1974–75 fiscal year or any fiscal year thereafter, shall remain in effect until such time as title to the property changes, the owner does not occupy the home as his principal place of residence on the lien date, or the property is otherwise ineligible pursuant to the provisions of Section 218. If the exemption is lost by the owner of the property for any reason, he may file a new claim in the same manner as a new owner may file one. (Amended by Stats. 1974, Ch. 1107.)
  104. 254.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 2. ASSESSMENT [201 - 1367] ( Part 2 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Taxation Base [201 - 287] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 2. Procedure to Claim Exemptions [251 - 261] ( Article 2 enacted by Stats. 1939, Ch. 154. )

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    People claiming certain property tax exemptions, or documented-vessel classification for assessment, must file an annual affidavit with the assessor and provide any information the board requires.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 2. ASSESSMENT [201 - 1367] ( Part 2 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Taxation Base [201 - 287] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 2. Procedure to Claim Exemptions [251 - 261] ( Article 2 enacted by Stats. 1939, Ch. 154. ) ## 254. Any person claiming the church, cemetery, college, exhibition, welfare, veterans’ organization, free public libraries, free museums, aircraft of historical significance, tribal housing, or public schools property tax exemption and anyone claiming the classification of a vessel as a documented vessel eligible for assessment under Section 227, shall submit to the assessor annually an affidavit, giving any information required by the board. (Amended by Stats. 2002, Ch. 775, Sec. 15. Effective January 1, 2003.)
  105. 254.2.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 2. ASSESSMENT [201 - 1367] ( Part 2 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Taxation Base [201 - 287] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 2. Procedure to Claim Exemptions [251 - 261] ( Article 2 enacted by Stats. 1939, Ch. 154. )

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    Property owned by the United States or its agencies is exempt from taxation when it is used exclusively for migratory water fowl refuges, protection/promotion of migratory water fowl, or public shooting grounds.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 2. ASSESSMENT [201 - 1367] ( Part 2 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Taxation Base [201 - 287] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 2. Procedure to Claim Exemptions [251 - 261] ( Article 2 enacted by Stats. 1939, Ch. 154. ) ## 254.2. All property owned by the United States or any agency thereof and used exclusively for migratory water fowl refuges, or used for the promotion or protection of migratory water fowl or for migratory water fowl public shooting grounds is exempt from taxation. No affidavit need be filed for this exemption. (Added by Stats. 1947, Ch. 666.)
  106. 254.5.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 2. ASSESSMENT [201 - 1367] ( Part 2 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Taxation Base [201 - 287] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 2. Procedure to Claim Exemptions [251 - 261] ( Article 2 enacted by Stats. 1939, Ch. 154. )

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    This section sets filing, review, notice, and cancellation rules for welfare and veterans’ organization property tax exemption claims.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 2. ASSESSMENT [201 - 1367] ( Part 2 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Taxation Base [201 - 287] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 2. Procedure to Claim Exemptions [251 - 261] ( Article 2 enacted by Stats. 1939, Ch. 154. ) ## 254.5. (a) Claims for the welfare exemption and the veterans’ organization exemption shall be filed on or before February 15 of each year with the assessor. The assessor may not approve a property tax exemption claim until the claimant has been issued a valid organizational clearance certificate pursuant to Section 254.6. Financial statements shall be submitted only if requested in writing by the assessor. (b) (1) The assessor shall review all claims for the welfare exemption to ascertain whether the property on which the exemption is claimed meets the requirements of Section 214. The assessor shall also review all claims for the veterans’ organization exemption to ascertain whether the property on which the exemption is claimed meets the requirements of Section 215.1. In this connection, the assessor shall consider, among other matters, whether: (A) Any capital investment of the owner or operator for expansion of a physical plant is justified by the contemplated return thereon, and required to serve the interests of the community. (B) The property on which the exemption is claimed is used for the actual operation of an exempt activity and does not exceed an amount of property reasonably necessary to the accomplishment of the exempt purpose. (2) The assessor may institute an audit or verification of the operations of the owner or operator of the applicant’s property to ascertain whether both the owner and operator meet the requirements of Section 214. (c) (1) The assessor may deny a claim for the welfare exemption on a property, notwithstanding that the claimant has been granted an organizational clearance certificate by the board. (2) If the assessor finds that the claimant’s property is ineligible for the welfare exemption or the veterans’ organization exemption, the assessor shall notify the claimant in writing of all of the following: (A) That the property is ineligible for the exemption. (B) That the claimant may seek a refund of property taxes paid by filing a refund claim with the county. (C) That if the claimant’s refund claim with the county is denied, the claimant may file a refund action in superior court. (d) Notwithstanding subdivision (a), an applicant, granted a welfare exemption and owning any property exempted pursuant to Section 214.15 or Section 231, shall not be required to reapply for the welfare exemption in any subsequent year in which there has been no transfer of, or other change in title to, the exempted property and the property is used exclusively by a governmental entity or by a nonprofit corporation described in Section 214.15 for its interest and benefit. The applicant shall notify the assessor on or before February 15 if, on or before the preceding lien date, the applicant became ineligible for the welfare exemption or if, on or before that lien date, the property was no longer owned by the applicant or otherwise failed to meet all requirements for the welfare exemption. Prior to the lien date, the assessor shall annually mail a notice to every applicant relieved of the requirement of filing an annual application by this subdivision. The notice shall be in a form and contain that information that the board may prescribe, after consultation with the California Assessors’ Association, and shall set forth the circumstances under which the property may no longer be eligible for exemption, and advise the applicant of the duty to inform the assessor if the property is no longer eligible for exemption. The notice shall inform any applicant desiring to maintain eligibility for the welfare exemption under Section 214.15 or Section 231 for the next fiscal year of the procedure to reaffirm exemption eligibility. The failure to reaffirm eligibility for the exemption does not of itself constitute a waiver of exemption as called for by the California Constitution, but may result in additional contact by the assessor to verify exempt activity. (e) Upon any indication that a welfare exemption or veterans’ organization exemption on the property has been incorrectly granted, the assessor shall redetermine eligibility for the exemption. If the assessor determines that the property, or any portion thereof, is no longer eligible for the exemption, he or she shall immediately cancel the exemption on so much of the property as is no longer eligible for the exemption. (f) If a welfare exemption or veterans’ organization exemption on the property has been incorrectly allowed, an escape assessment as provided by Article 4 (commencing with Section 531) of Chapter 3 in the amount of the exemption, with interest as provided in Section 506, shall be made, and a penalty shall be assessed for any failure to notify the assessor as required by this section in an amount equaling 10 percent of the escape assessment, but may not exceed two hundred fifty dollars ($250). (g) Pursuant to Section 15640 of the Government Code, the board shall review the assessor’s administration of the welfare exemption and the veterans’ organization exemption as part of the board’s survey of the county assessment roll to ensure the proper administration of the exemption. (h) Notwithstanding Section 20, for purposes of this section “board” means the State Board of Equalization. (Amended by Stats. 2018, Ch. 37, Sec. 56. (AB 1817) Effective June 27, 2018.)
  107. 254.6.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 2. ASSESSMENT [201 - 1367] ( Part 2 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Taxation Base [201 - 287] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 2. Procedure to Claim Exemptions [251 - 261] ( Article 2 enacted by Stats. 1939, Ch. 154. )

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    An organization seeking a welfare or veterans’ organization exemption must file a claim for an organizational clearance certificate with the State Board of Equalization.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 2. ASSESSMENT [201 - 1367] ( Part 2 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Taxation Base [201 - 287] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 2. Procedure to Claim Exemptions [251 - 261] ( Article 2 enacted by Stats. 1939, Ch. 154. ) ## 254.6. (a) An organization that intends to claim the welfare exemption or veterans’ organization exemption shall file with the State Board of Equalization a claim for an organizational clearance certificate. (b) The board staff shall review each claim for an organizational clearance certificate for the welfare exemption to ascertain whether the organization meets the requirements of Section 214 and shall issue a certificate to a claimant that meets these requirements. The board staff shall also review each claim for an organizational clearance certificate for the veterans’ organization exemption to ascertain whether the organization meets the requirements of Section 215.1 and shall issue a certificate to a claimant that meets these requirements. In this connection, the board staff shall consider, among other matters, whether: (1) The services and expenses of the owner or operator (including salaries) are excessive, based upon like services and salaries in comparable public or private institutions. (2) The operations of the owner or operator, either directly or indirectly, materially enhance the private gain of any individual or individuals. (c) Any claim of any organization that files for an organizational clearance certificate for the first time shall be accompanied by the claimant’s corporate identification number, mailing address, and all of the following documents: (1) A certified copy of the financial statements of the organization. (2) A certified copy of the articles of incorporation and any amendments thereto, or in the case of any noncorporate fund or foundation, its bylaws, articles of association, constitution, or regulations and any amendments thereto. (3) A copy of a valid, unrevoked letter or ruling from either the Franchise Tax Board or, in the alternative, the Internal Revenue Service, that states that the organization qualifies as an exempt organization under the appropriate provisions of the Bank and Corporation Tax Law or the Internal Revenue Code. (d) (1) If the board staff determines that a claimant is not eligible for an organizational clearance certificate, the board shall notify the claimant of the ineligibility. (2) The claimant may file an appeal of the board staff’s finding of ineligibility with the board within 60 days of the date of mailing of the notice of ineligibility. The appeal of the board staff’s finding shall be in writing and shall state the specific grounds upon which the appeal is founded. (3) The board shall conduct a hearing on the appeal in accordance with any rules of notice, procedure, and briefing as the board shall prescribe. The parties to the hearing or proceeding shall be the board staff and the claimant appealing the finding of ineligibility. The board staff and the claimant may agree in writing to submit the matter to the board for a decision without a hearing. The board shall provide written findings and conclusions or a written decision to support its decision. (e) (1) Once granted, an organizational clearance certificate for the welfare exemption remains valid until the board staff determines that the organization no longer meets the requirements of Section 214. Once granted, an organizational clearance certificate for the veterans’ organization exemption remains valid until the board staff determines that the organization no longer meets the requirements of Section 215.1. (2) If the board staff determines that the organization no longer meets the requirements for an organizational clearance certificate, the board staff shall revoke the certificate and notify the claimant and each county assessor of the revocation. (3) The organization may file an appeal of the board staff’s revocation with the board within 60 days of the date of mailing of the notice revocation. The appeal of the revocation shall be in writing and shall state the specific grounds upon which the appeal is founded. (4) The board shall conduct a hearing on the appeal in accordance with any rules of notice, procedure, and briefing as the board shall prescribe. The parties to the hearing or proceeding shall be the board staff and the claimant appealing the finding of ineligibility. The board staff and the claimant may agree in writing to submit the matter to the board for decision without hearing. The board shall provide written findings and conclusions or a written decision to support its decision. (f) Pursuant to Section 15618 of the Government Code, the board may institute an audit or verification of an organization to ascertain whether the organization meets the requirements of Section 214. (g) Notwithstanding Section 20, for purposes of this section “State Board of Equalization” and “board” mean the State Board of Equalization. (Amended by Stats. 2018, Ch. 37, Sec. 57. (AB 1817) Effective June 27, 2018.)
  108. 255.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 2. ASSESSMENT [201 - 1367] ( Part 2 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Taxation Base [201 - 287] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 2. Procedure to Claim Exemptions [251 - 261] ( Article 2 enacted by Stats. 1939, Ch. 154. )

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    This section sets filing deadlines for exemption affidavits and allows certain claimants denied church or religious exemptions to file for a welfare exemption.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 2. ASSESSMENT [201 - 1367] ( Part 2 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Taxation Base [201 - 287] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 2. Procedure to Claim Exemptions [251 - 261] ( Article 2 enacted by Stats. 1939, Ch. 154. ) ## 255. (a) Affidavits required for exemptions named in this article, except the homeowners’ exemption, shall be filed with the assessor between the lien date and 5 p.m. on February 15. (b) Affidavits for the homeowners’ exemption except as otherwise provided in Sections 255.1, 255.2, and 275, shall be filed with the assessor any time after the claimant becomes eligible but no later than 5 p.m. on February 15. (c) Notwithstanding the provisions of subdivision (a), any claimant who has been found ineligible for the church exemption or the religious exemption may file an affidavit for a welfare exemption. Affidavits for the welfare exemption filed pursuant to this subdivision shall be filed within 15 days from the date of notification by the assessor of the claimants’ ineligibility for the church exemption or the religious exemption. (Amended by Stats. 1997, Ch. 941, Sec. 3. Effective January 1, 1998.)
  109. 255.1.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 2. ASSESSMENT [201 - 1367] ( Part 2 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Taxation Base [201 - 287] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 2. Procedure to Claim Exemptions [251 - 261] ( Article 2 enacted by Stats. 1939, Ch. 154. )

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    The assessor may give a claimant extra time to file a homeowners’ property tax exemption claim if the claimant filed on time but the claim is defective for missing information or a signature.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 2. ASSESSMENT [201 - 1367] ( Part 2 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Taxation Base [201 - 287] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 2. Procedure to Claim Exemptions [251 - 261] ( Article 2 enacted by Stats. 1939, Ch. 154. ) ## 255.1. The assessor, whenever in his judgment good cause exists, may grant a reasonable extension of time for filing a claim for the homeowners’ property tax exemption to any claimant who has filed a timely claim, but the claim is otherwise defective because it lacks either any of the required information or the signature of the claimant. Only one extension shall be allowed to such claimant for any one filing period. No extension shall be more than six months from the due date provided for filing the claim, unless the assessor does not find and notify the claimant of the defect within a reasonable time to allow resubmission of the defective claim as corrected before the expiration of the six-month extension, in which case the assessor shall extend the permissible period for filing no more than three months from the time the defect or defects are found and the claimant is notified. (Amended by Stats. 1971, Ch. 147.)
  110. 255.2.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 2. ASSESSMENT [201 - 1367] ( Part 2 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Taxation Base [201 - 287] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 2. Procedure to Claim Exemptions [251 - 261] ( Article 2 enacted by Stats. 1939, Ch. 154. )

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    Some veterans who qualify may file for the homeowner’s exemption here, and the assessor must notify veterans found ineligible for the veteran’s exemption.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 2. ASSESSMENT [201 - 1367] ( Part 2 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Taxation Base [201 - 287] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 2. Procedure to Claim Exemptions [251 - 261] ( Article 2 enacted by Stats. 1939, Ch. 154. ) ## 255.2. Notwithstanding Section 255 of the Revenue and Taxation Code, any veteran who is filing for the veteran’s exemption on his or her principal place of residence for the first time or who was found eligible for that exemption on his or her principal place of residence in the immediately preceding year and whose claim is timely filed but disallowed for the current year may, if otherwise qualified for the homeowner’s exemption, file for the homeowner’s exemption as provided herein. The assessor shall notify those applicants he or she finds ineligible for the veteran’s exemption of his or her finding and shall inform them that they have 15 days from the date of the notice to file for the homeowner’s exemption. The failure of the assessor to provide the notice required by this section shall extend the filing period for those not notified to the next lien date. (Amended by Stats. 1991, Ch. 646, Sec. 4.)
  111. 255.3.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 2. ASSESSMENT [201 - 1367] ( Part 2 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Taxation Base [201 - 287] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 2. Procedure to Claim Exemptions [251 - 261] ( Article 2 enacted by Stats. 1939, Ch. 154. )

    Verify source ↗

    The assessor must mail a homeowners’ exemption claim form by January 15 for eligible dwelling owners who acquired and recorded title in the relevant period.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 2. ASSESSMENT [201 - 1367] ( Part 2 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Taxation Base [201 - 287] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 2. Procedure to Claim Exemptions [251 - 261] ( Article 2 enacted by Stats. 1939, Ch. 154. ) ## 255.3. For the 1998–99 fiscal year and each fiscal year thereafter, the assessor shall on or before January 15 mail a claim form for the homeowners’ exemption to a person acquiring title to, and recording his or her ownership of an eligible dwelling after the immediately preceding lien date and before the lien date of the calendar year of the claim. The failure of a person to receive a claim form shall not, however, excuse the person from timely filing of the required affidavit. (Amended by Stats. 1997, Ch. 941, Sec. 4. Effective January 1, 1998.)
  112. 255.6.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 2. ASSESSMENT [201 - 1367] ( Part 2 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Taxation Base [201 - 287] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 2. Procedure to Claim Exemptions [251 - 261] ( Article 2 enacted by Stats. 1939, Ch. 154. )

    Verify source ↗

    The assessor must verify whether each homeowners’ exemption claimant still qualifies to keep the exemption.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 2. ASSESSMENT [201 - 1367] ( Part 2 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Taxation Base [201 - 287] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 2. Procedure to Claim Exemptions [251 - 261] ( Article 2 enacted by Stats. 1939, Ch. 154. ) ## 255.6. The assessor shall verify the eligibility of each claimant who is receiving a homeowners’ exemption to continue to receive such an exemption in accordance with rules issued by the board to provide for a periodic audit and for the establishment of a control system for the homeowners’ exemption claims. (Amended (as added by Stats. 1974, Ch. 60, Sec. 8) by Stats. 1974, Ch. 1107, Sec. 7. Amendment operative beginning with 1974-75 fiscal year, by Sec. 21 of Ch. 1107.)
  113. 255.7.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 2. ASSESSMENT [201 - 1367] ( Part 2 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Taxation Base [201 - 287] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 2. Procedure to Claim Exemptions [251 - 261] ( Article 2 enacted by Stats. 1939, Ch. 154. )

    Verify source ↗

    When a change of ownership is recorded, the county recorder must send the assessor a copy of the transfer document as soon as possible.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 2. ASSESSMENT [201 - 1367] ( Part 2 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Taxation Base [201 - 287] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 2. Procedure to Claim Exemptions [251 - 261] ( Article 2 enacted by Stats. 1939, Ch. 154. ) ## 255.7. Whenever a change of ownership is recorded in the county recorder’s office, the county recorder shall provide the assessor with a copy of the transfer of ownership document as soon as possible. (Added by Stats. 1974, Ch. 60.)
  114. 255.8.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 2. ASSESSMENT [201 - 1367] ( Part 2 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Taxation Base [201 - 287] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 2. Procedure to Claim Exemptions [251 - 261] ( Article 2 enacted by Stats. 1939, Ch. 154. )

    Verify source ↗

    In counties where at least 10% of residents are of Spanish origin, the homeowner claim forms and instructions must be in English and Spanish. In other counties, the county assessor may choose to send or make Spanish forms and instructions available.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 2. ASSESSMENT [201 - 1367] ( Part 2 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Taxation Base [201 - 287] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 2. Procedure to Claim Exemptions [251 - 261] ( Article 2 enacted by Stats. 1939, Ch. 154. ) ## 255.8. In counties having 10 percent or more persons who are of Spanish origin according to the most recent federal decennial census, claim forms and accompanying instructions required to be sent to homeowners by Section 255.3 shall be in English and Spanish. Claim forms and instructions in Spanish may also be sent or made available in any other county, at the discretion of the county assessor. (Amended by Stats. 1983, Ch. 1281, Sec. 12. Effective September 30, 1983.)
  115. 256.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 2. ASSESSMENT [201 - 1367] ( Part 2 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Taxation Base [201 - 287] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 2. Procedure to Claim Exemptions [251 - 261] ( Article 2 enacted by Stats. 1939, Ch. 154. )

    Verify source ↗

    County assessors must mail church-exemption claim forms each year before the lien date, unless the prior recipient has transferred title since the prior lien date.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 2. ASSESSMENT [201 - 1367] ( Part 2 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Taxation Base [201 - 287] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 2. Procedure to Claim Exemptions [251 - 261] ( Article 2 enacted by Stats. 1939, Ch. 154. ) ## 256. (a) The affidavit for church exemption shall show that: (1) The building and equipment are used solely for religious worship. (2) The land claimed as exempt is required for the convenient use of the building. (b) Each year before the lien date, county assessors shall mail a claim form for the church exemption to all recipients of such exemption in the prior year, except where the prior recipient has transferred title to the property since the prior lien date. (Amended by Stats. 1976, Ch. 681.)
  116. 256.5.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 2. ASSESSMENT [201 - 1367] ( Part 2 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Taxation Base [201 - 287] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 2. Procedure to Claim Exemptions [251 - 261] ( Article 2 enacted by Stats. 1939, Ch. 154. )

    Verify source ↗

    An affidavit for the cemetery exemption must state that the property is used only for burial-related or care purposes and is not used or held for profit.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 2. ASSESSMENT [201 - 1367] ( Part 2 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Taxation Base [201 - 287] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 2. Procedure to Claim Exemptions [251 - 261] ( Article 2 enacted by Stats. 1939, Ch. 154. ) ## 256.5. The affidavit for the cemetery exemption shall show that: (a) The property is used or held exclusively for the burial or other permanent deposit of the human dead or for the care, maintenance or upkeep of such property or such dead, and (b) The property is not used or held for profit. (Added by Stats. 1966, 1st Ex. Sess., Ch. 147.)
  117. 256.6.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 2. ASSESSMENT [201 - 1367] ( Part 2 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Taxation Base [201 - 287] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 2. Procedure to Claim Exemptions [251 - 261] ( Article 2 enacted by Stats. 1939, Ch. 154. )

    Verify source ↗

    The assessor must mail an annual exemption notice to prior-year recipients before the lien date, and the board must set the notice form. The recipient must tell the assessor if the property no longer qualifies, and the assessor may include a return card.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 2. ASSESSMENT [201 - 1367] ( Part 2 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Taxation Base [201 - 287] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 2. Procedure to Claim Exemptions [251 - 261] ( Article 2 enacted by Stats. 1939, Ch. 154. ) ## 256.6. (a) (1) Prior to the lien date, the assessor shall annually mail a notice to every person or entity that received, in the immediately preceding fiscal year, the exemption provided by Section 204. (2) The board shall prescribe the form for the annual notice described in paragraph (1), which form shall specify the following: (A) The circumstances under which the property may be disqualified from exemption. (B) That the person or entity has a duty to inform the assessor if the property no longer qualifies for the exemption. (b) At the same time the notice described in subdivision (a) is mailed, the assessor shall include with that notice a card that may be returned to the assessor by the person or entity receiving the notice, which card shall be in the following form: To all persons and entities that have received a nonprofit cemetery exemption for the ____ fiscal year. QUESTION: Will the property to which the exemption applied in the ____ fiscal year continue to be used or held exclusively for the burial or other permanent deposit of the human dead or for the care, maintenance, or upkeep of that property or those dead in the ____ fiscal year? ___ yes___ no Signature: ____________ Title: __________ Failure to return this card does not constitute a waiver of this exemption as specified by the California Constitution, but may result in an onsite inspection by the assessor to verify any exempt activity. (Added by Stats. 2003, Ch. 604, Sec. 4. Effective January 1, 2004.)
  118. 256.7.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 2. ASSESSMENT [201 - 1367] ( Part 2 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Taxation Base [201 - 287] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 2. Procedure to Claim Exemptions [251 - 261] ( Article 2 enacted by Stats. 1939, Ch. 154. )

    Verify source ↗

    Some cemeteries do not have to file an affidavit to receive the cemetery exemption if the listed conditions are met.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 2. ASSESSMENT [201 - 1367] ( Part 2 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Taxation Base [201 - 287] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 2. Procedure to Claim Exemptions [251 - 261] ( Article 2 enacted by Stats. 1939, Ch. 154. ) ## 256.7. (a) Notwithstanding Sections 254, 256.5, and 256.6, an affidavit claiming the cemetery exemption, as provided for in subdivision (g) of Section 3 of Article XIII of the California Constitution and Section 204, is not required to be filed in order to receive the exemption for any cemetery that exists, or is discovered to exist, in the unincorporated area of a county for which the assessor is unable to identify the legal cemetery authority, as defined in Section 7018 of the Health and Safety Code, that may by law claim the exemption for that cemetery, if both of the following apply: (1) The cemetery was used by residents of the state prior to the year 1900. (2) The cemetery is no longer used for current or future interments. (b) Any tax, penalty, or interest imposed upon a cemetery subject to this section shall be canceled pursuant to Article 1 (commencing with Section 4985) of Chapter 4 of Part 9, as if it had been levied or charged erroneously. (Added by Stats. 2003, Ch. 604, Sec. 5. Effective January 1, 2004.)
  119. 257.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 2. ASSESSMENT [201 - 1367] ( Part 2 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Taxation Base [201 - 287] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 2. Procedure to Claim Exemptions [251 - 261] ( Article 2 enacted by Stats. 1939, Ch. 154. )

    Verify source ↗

    A person claiming the religious property tax exemption must file an affidavit with the assessor, and the exemption stays in effect until the property changes title or stops being used for exempt purposes.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 2. ASSESSMENT [201 - 1367] ( Part 2 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Taxation Base [201 - 287] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 2. Procedure to Claim Exemptions [251 - 261] ( Article 2 enacted by Stats. 1939, Ch. 154. ) ## 257. (a) Any person claiming the religious exemption shall submit to the assessor an affidavit giving specific information relating to property tax exemption. (b) The affidavit shall show that: (1) The building, equipment, and land are used exclusively for religious purposes. (2) The land claimed as exempt is required for the convenient use of the building. (3) The property is owned by an entity organized and operating exclusively for religious purposes. (4) The entity is nonprofit. (5) No part of the net earnings inures to the benefit of any private individual. (c) Any exemption granted pursuant to a claim filed in accordance with this section, once granted, shall remain in effect until that time that title to the property changes or the property is no longer used for exempt purposes. Any person who is granted an exemption pursuant to a claim filed in accordance with this section shall notify the assessor by February 15 if the property becomes ineligible for the exemption. (d) Upon any indication that a religious exemption has been incorrectly allowed, the assessor shall make a redetermination of eligibility for the religious exemption. If the assessor determines that the property or any portion thereof is no longer eligible for the exemption, he or she shall immediately cancel the exemption on so much of the property as is no longer eligible for exemption. If a religious exemption has been incorrectly allowed, an escape assessment as allowed by Article 4 (commencing with Section 531) of Chapter 3 in the amount of the exemption with interest as provided in Section 506 shall be made, together with a penalty for failure to notify the assessor, where applicable, in the amount of 10 percent of the assessment, but may not exceed two hundred fifty dollars ($250) in tax liability. (Amended by Stats. 2002, Ch. 214, Sec. 3. Effective January 1, 2003.)
  120. 257.1.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 2. ASSESSMENT [201 - 1367] ( Part 2 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Taxation Base [201 - 287] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 2. Procedure to Claim Exemptions [251 - 261] ( Article 2 enacted by Stats. 1939, Ch. 154. )

    Verify source ↗

    The assessor must mail annual notices about the religious exemption, and people who want to keep the exemption must return the included card and inform the assessor if the property stops qualifying.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 2. ASSESSMENT [201 - 1367] ( Part 2 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Taxation Base [201 - 287] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 2. Procedure to Claim Exemptions [251 - 261] ( Article 2 enacted by Stats. 1939, Ch. 154. ) ## 257.1. For the 1983–84 fiscal year and fiscal years thereafter, the assessor shall annually, prior to the lien date, mail a notice to every person who received the religious exemption for the previous fiscal year. The notice shall be in a form and contain that information which the board may prescribe, and shall set forth the circumstances under which the property may no longer be eligible for exemption and advise the person of the duty to inform the assessor if the property is no longer eligible for exemption. The notice shall include a card which is to be returned to the assessor by any person who desires to maintain eligibility for the religious exemption. That card shall be in the following form: To all persons who have received a religious exemption for the ________ fiscal year. QUESTION:Will the property to which the exemption applies in the ________ fiscal year continue to be used exclusively for religious purposes in the ________ fiscal year? Yes ________ No ________ Signature:______________Title: ______________ Failure to return this card does not of itself constitute a waiver of exemption as called for by the California Constitution, but may result in onsite inspection to verify exempt activity. (Amended by Stats. 1983, Ch. 312, Sec. 3.)
  121. 258.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 2. ASSESSMENT [201 - 1367] ( Part 2 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Taxation Base [201 - 287] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 2. Procedure to Claim Exemptions [251 - 261] ( Article 2 enacted by Stats. 1939, Ch. 154. )

    Verify source ↗

    A college-exemption affidavit must show the school is collegiate, not for profit, that the claimed grounds contain the buildings, and that the property is used only for education.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 2. ASSESSMENT [201 - 1367] ( Part 2 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Taxation Base [201 - 287] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 2. Procedure to Claim Exemptions [251 - 261] ( Article 2 enacted by Stats. 1939, Ch. 154. ) ## 258. The affidavit for the college exemption shall show that: (a) The educational institution is of collegiate grade and is not conducted for profit. (b) The grounds for which exemption is claimed are those within which its buildings are located. (c) The property for which exemption is claimed is used exclusively for the purposes of education. Any additional proof of the facts stated may be required by the assessor. The exempt grounds need not be contiguous or in one tract. (Amended by Stats. 1963, Ch. 244.)
  122. 259.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 2. ASSESSMENT [201 - 1367] ( Part 2 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Taxation Base [201 - 287] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 2. Procedure to Claim Exemptions [251 - 261] ( Article 2 enacted by Stats. 1939, Ch. 154. )

    Verify source ↗

    An affidavit for the exhibition exemption must state facts showing the property qualifies for the exemption.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 2. ASSESSMENT [201 - 1367] ( Part 2 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Taxation Base [201 - 287] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 2. Procedure to Claim Exemptions [251 - 261] ( Article 2 enacted by Stats. 1939, Ch. 154. ) ## 259. The affidavit for the exhibition exemption shall state the facts showing that the property comes within all the descriptions entitling it to the exemption. (Enacted by Stats. 1939, Ch. 154.)
  123. 259.10.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 2. ASSESSMENT [201 - 1367] ( Part 2 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Taxation Base [201 - 287] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 2. Procedure to Claim Exemptions [251 - 261] ( Article 2 enacted by Stats. 1939, Ch. 154. )

    Verify source ↗

    For the public schools exemption, the affidavit must state the owner’s name, the school’s name, and the terms of the agreement giving the school use of the property; if the agreement is written, a copy must be attached.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 2. ASSESSMENT [201 - 1367] ( Part 2 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Taxation Base [201 - 287] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 2. Procedure to Claim Exemptions [251 - 261] ( Article 2 enacted by Stats. 1939, Ch. 154. ) ## 259.10. The affidavit for the public schools exemption shall show: (a) The owner’s name and the name of the school within the public school system that is using the property exclusively for public school purposes. (b) The terms of the agreement by which the public school obtained the use of the property. When the agreement is in writing, a copy of the document shall accompany the affidavit. (Added by Stats. 1974, Ch. 186.)
  124. 259.11.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 2. ASSESSMENT [201 - 1367] ( Part 2 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Taxation Base [201 - 287] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 2. Procedure to Claim Exemptions [251 - 261] ( Article 2 enacted by Stats. 1939, Ch. 154. )

    Verify source ↗

    For the aircraft of historical significance exemption, the affidavit must show that both the property and the owner meet all requirements for the exemption.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 2. ASSESSMENT [201 - 1367] ( Part 2 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Taxation Base [201 - 287] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 2. Procedure to Claim Exemptions [251 - 261] ( Article 2 enacted by Stats. 1939, Ch. 154. ) ## 259.11. The affidavit for the aircraft of historical significance exemption shall show that both the property and the owner meet all the requirements entitling the property to the exemption. (Added by Stats. 1988, Ch. 1271, Sec. 7. Effective September 26, 1988.)
  125. 259.13.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 2. ASSESSMENT [201 - 1367] ( Part 2 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Taxation Base [201 - 287] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 2. Procedure to Claim Exemptions [251 - 261] ( Article 2 enacted by Stats. 1939, Ch. 154. )

    Verify source ↗

    Claimants for the tribal housing exemption must file annual affidavits with the assessor by February 15 and include required documents, property details, and income/rental information.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 2. ASSESSMENT [201 - 1367] ( Part 2 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Taxation Base [201 - 287] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 2. Procedure to Claim Exemptions [251 - 261] ( Article 2 enacted by Stats. 1939, Ch. 154. ) ## 259.13. (a) Affidavits for the tribal housing exemption shall be filed on or before February 15 of each year with the assessor. Affidavits of claimants shall be accompanied by: (1) The documents required by subdivision (c) of Section 237. (2) A description of the property for which the exemption is claimed, including the entire project property and the portion for which exemption is claimed. If the property includes units which do not qualify for the exemption, the description must list the qualifying and nonqualifying units. (3) An annual affidavit by the claimant that the property for which exemption is claimed meets the income and rental requirements for the exemption and listing the number of occupants in each unit for which the exemption is claimed and the income and rental limits applicable for each household. Annual tenant affidavits verifying household size and income should be on file with the claimant for each exempt unit. (b) Once the exemption has been granted in a particular county to a particular tribe or tribally designated housing entity, documents establishing that the tribe is federally recognized and that the housing entity has been designated by the tribe need not be resubmitted for additional years or additional properties of that tribe or tribally designated housing entity in the same county. (c) Once the exemption has been granted for a particular property, it is not necessary to resubmit documents establishing that there is a legally binding restriction on the use of that property in succeeding years for as long as the legally binding restriction is in effect. (d) Upon any indication that a tribal housing exemption has been incorrectly allowed, the assessor shall make a redetermination of eligibility for the tribal housing exemption. If the assessor determines that the property or any portion thereof is no longer eligible for the exemption, he or she shall immediately cancel the exemption on so much of the property as is no longer eligible for exemption. (e) If a tribal housing exemption has been incorrectly allowed, an escape assessment as allowed by Article 4 (commencing with Section 531) of Chapter 3 in the amount of the exemption with interest as provided in Section 506 shall be made, together with a penalty for failure to notify the assessor, where applicable, in the amount of 10 percent of the assessment. (Added by Stats. 2002, Ch. 775, Sec. 16. Effective January 1, 2003.)
  126. 259.14.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 2. ASSESSMENT [201 - 1367] ( Part 2 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Taxation Base [201 - 287] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 2. Procedure to Claim Exemptions [251 - 261] ( Article 2 enacted by Stats. 1939, Ch. 154. )

    Verify source ↗

    A welfare exemption claim for qualified property must be filed with an affidavit, and the affidavit must include specified unit and occupant information.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 2. ASSESSMENT [201 - 1367] ( Part 2 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Taxation Base [201 - 287] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 2. Procedure to Claim Exemptions [251 - 261] ( Article 2 enacted by Stats. 1939, Ch. 154. ) ## 259.14. (a) The claim for welfare exemption on qualified property, in addition to giving any other information as prescribed by the board, shall be accompanied by an affidavit that provides both of the following: (1) A list of units occupied by lower income households for which the exemption is claimed. (2) All of the following nonpersonally identifiable information about the occupants of the units listed pursuant to paragraph (1): (A) The actual household income of the occupant. (B) The maximum rent that may be charged to the occupant. (C) The actual rent charged to the occupant. (b) The affidavit required to accompany the claim for welfare exemption pursuant to subdivision (a) shall be confidential and shall not be subject to public disclosure. (c) For purposes of this section, “qualified property” has the same meaning as that term is defined in Section 214.17. (Added by Stats. 2016, Ch. 836, Sec. 3. (SB 996) Effective January 1, 2017.)
  127. 259.15.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 2. ASSESSMENT [201 - 1367] ( Part 2 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Taxation Base [201 - 287] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 2. Procedure to Claim Exemptions [251 - 261] ( Article 2 enacted by Stats. 1939, Ch. 154. )

    Verify source ↗

    Some welfare exemption claims must be filed with an affidavit for specified fiscal years, and those affidavits are confidential.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 2. ASSESSMENT [201 - 1367] ( Part 2 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Taxation Base [201 - 287] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 2. Procedure to Claim Exemptions [251 - 261] ( Article 2 enacted by Stats. 1939, Ch. 154. ) ## 259.15. (a) (1) For the 2018–19 fiscal year to the 2027–28 fiscal year, the claim for welfare exemption on a property that is eligible for and has received low-income housing tax credits pursuant to Section 42 of the Internal Revenue Code, relating to low-income housing credit, including Section 42(g)(2)(D) of the Internal Revenue Code, relating to treatment of units occupied by individuals whose incomes rise above limit, in addition to giving any other information as prescribed by the board, when claiming an exemption for units pursuant to subclause (I) of clause (iii) of subparagraph (A) of paragraph (2) of subdivision (g) of Section 214, shall be accompanied by an affidavit that provides the information set forth in subdivision (b). (2) For the 2022–23 fiscal year through the 2027–28 fiscal year, when claiming a welfare exemption for units pursuant to clause (iv) of subparagraph (A) of paragraph (2) of subdivision (g) of Section 214, in addition to giving any other information as prescribed by the board, the claim for welfare exemption shall be accompanied by an affidavit that provides the information set forth in subdivision (b). (3) Beginning with the 2024–25 fiscal year, when claiming a welfare exemption for units pursuant to subclause (II) of clause (iii) of subparagraph (A) of paragraph (2) of subdivision (g) of Section 214, in addition to giving any other information as prescribed by the board, the claim for welfare exemption shall be accompanied by an affidavit that provides the information set forth in subdivision (b). (b) The affidavits required in subdivision (a) shall include the following information: (1) A list of all units, for which exemption is claimed, in which the unit will continue to be treated as a low-income unit if the occupant initially met the income limitation and the unit continues to be rent restricted. (2) All of the following nonpersonally identifiable information about the occupants of the units listed pursuant to paragraph (1): (A) The unit name or number. (B) The actual household income of the occupant. (C) The maximum rent that may be charged to the occupant. (D) The actual rent charged to the occupant. (E) The percentage of area median income, or other determinant factor, from which the maximum rent that may be charged to the occupant is derived. (c) The affidavits required to accompany the claim for welfare exemption pursuant to subdivision (a) shall be confidential and shall not be subject to public disclosure. (Amended by Stats. 2023, Ch. 734, Sec. 2. (AB 84) Effective October 11, 2023.)
  128. 259.5.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 2. ASSESSMENT [201 - 1367] ( Part 2 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Taxation Base [201 - 287] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 2. Procedure to Claim Exemptions [251 - 261] ( Article 2 enacted by Stats. 1939, Ch. 154. )

    Verify source ↗

    A welfare exemption claim must state that the property meets the use requirements and that the claimant has a valid organizational clearance certificate under Section 254.6.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 2. ASSESSMENT [201 - 1367] ( Part 2 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Taxation Base [201 - 287] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 2. Procedure to Claim Exemptions [251 - 261] ( Article 2 enacted by Stats. 1939, Ch. 154. ) ## 259.5. The claim for the welfare exemption shall show that the property use requirements entitling the property to the exemption are met, and that the claimant has a valid organizational clearance certificate issued pursuant to Section 254.6. (Amended by Stats. 2003, Ch. 471, Sec. 12.3. Effective January 1, 2004.)
  129. 259.7.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 2. ASSESSMENT [201 - 1367] ( Part 2 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Taxation Base [201 - 287] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 2. Procedure to Claim Exemptions [251 - 261] ( Article 2 enacted by Stats. 1939, Ch. 154. )

    Verify source ↗

    A claimant for the veterans’ organization exemption must show that the property meets the use requirements and that the claimant has a valid organizational clearance certificate.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 2. ASSESSMENT [201 - 1367] ( Part 2 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Taxation Base [201 - 287] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 2. Procedure to Claim Exemptions [251 - 261] ( Article 2 enacted by Stats. 1939, Ch. 154. ) ## 259.7. The claim for the veterans’ organization exemption shall show that the property use requirements entitling the property to the exemption are met, and that the claimant has a valid organizational clearance certificate issued pursuant to Section 254.6. (Amended by Stats. 2003, Ch. 471, Sec. 12.4. Effective January 1, 2004.)
  130. 259.8.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 2. ASSESSMENT [201 - 1367] ( Part 2 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Taxation Base [201 - 287] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 2. Procedure to Claim Exemptions [251 - 261] ( Article 2 enacted by Stats. 1939, Ch. 154. )

    Verify source ↗

    An affidavit for the free public libraries exemption must state how open the property is to the public, whether any admission or user charge is made, and the extent of any sales or business activities on the premises.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 2. ASSESSMENT [201 - 1367] ( Part 2 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Taxation Base [201 - 287] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 2. Procedure to Claim Exemptions [251 - 261] ( Article 2 enacted by Stats. 1939, Ch. 154. ) ## 259.8. The affidavit for the free public libraries exemption shall indicate the extent to which the property is open to the public, whether or not any admission or user charge is made for the use of library books, periodicals or facilities and the extent (if any) to which sales or business activites are conducted on the premises. (Added by Stats. 1974, Ch. 186.)
  131. 259.9.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 2. ASSESSMENT [201 - 1367] ( Part 2 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Taxation Base [201 - 287] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 2. Procedure to Claim Exemptions [251 - 261] ( Article 2 enacted by Stats. 1939, Ch. 154. )

    Verify source ↗

    The free museums exemption affidavit must state whether admission or user charges are made and, if so, how much sales or business activity occurs on the premises.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 2. ASSESSMENT [201 - 1367] ( Part 2 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Taxation Base [201 - 287] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 2. Procedure to Claim Exemptions [251 - 261] ( Article 2 enacted by Stats. 1939, Ch. 154. ) ## 259.9. The affidavit for the free museums exemption shall indicate whether or not any admission or user charge is made to those viewing the museum contents and the extent (if any) to which sales or business activities are conducted on the premises. (Added by Stats. 1974, Ch. 186.)
  132. 26.

    ## Revenue and Taxation Code - RTC ## GENERAL PROVISIONS ( General Provisions enacted by Stats. 1939, Ch. 154. )

    Verify source ↗

    If any part of the code is held invalid, the rest of the code still applies.

    ## Revenue and Taxation Code - RTC ## GENERAL PROVISIONS ( General Provisions enacted by Stats. 1939, Ch. 154. ) ## 26. If any provision of this code, or its application to any person or circumstance, is held invalid, the remainder of the code, or the application of the provision to other persons or circumstances, is not affected. (Enacted by Stats. 1939, Ch. 154.)
  133. 260.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 2. ASSESSMENT [201 - 1367] ( Part 2 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Taxation Base [201 - 287] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 2. Procedure to Claim Exemptions [251 - 261] ( Article 2 enacted by Stats. 1939, Ch. 154. )

    Verify source ↗

    A person claiming an exemption in this article must follow the required procedure, or the exemption is waived.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 2. ASSESSMENT [201 - 1367] ( Part 2 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Taxation Base [201 - 287] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 2. Procedure to Claim Exemptions [251 - 261] ( Article 2 enacted by Stats. 1939, Ch. 154. ) ## 260. If any person, claiming any exemption named in this article, fails to follow the required procedure, the exemption is waived by the person. (Amended by Stats. 1941, Ch. 8.)
  134. 2601.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 5. COLLECTION OF TAXES [2501 - 3205] ( Part 5 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 2. Collection Generally [2601 - 2636] ( Chapter 2 enacted by Stats. 1939, Ch. 154. )

    Verify source ↗

    The auditor must deliver the secured roll, assessment roll, or completed tax bills to the appropriate officials by the stated September or October deadlines, with the required affidavit, depending on how the roll and tax bills are prepared.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 5. COLLECTION OF TAXES [2501 - 3205] ( Part 5 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 2. Collection Generally [2601 - 2636] ( Chapter 2 enacted by Stats. 1939, Ch. 154. ) ## 2601. (a) On or before the fourth Monday in September, the auditor shall deliver the secured roll to the tax collector, with an affixed affidavit, subscribed by him, as follows: “I, ____, Auditor of ____ County, swear that I received the assessment roll from the assessor, with his affixed affidavit: that I have corrected it as required by the State Board of Equalization; and that I have reckoned the respective sums due as taxes and have added the columns of valuations and taxes, as required by law.” If the roll is a machine-prepared roll, the auditor shall deliver the assessment roll to the assessor and shall deliver the roll on which he has extended taxes to the tax collector, with an affixed affidavit, subscribed by him, as follows: “I, ____, Auditor of ____ County, swear that the attached roll is a reproduction of the roll prepared by the assessor and corrected by the State Board of Equalization; and that I have reckoned the respective sums due as taxes and have added the columns of valuations and taxes as required by law.” (b) If the roll is a machine-prepared roll, and the tax bills are, with the consent of the tax collector and the approval of the board of supervisors, also machine-prepared by the auditor, the auditor shall, on or before the fourth Monday in September, deliver the assessment roll to the assessor, and shall, on or before October 16, deliver the roll on which he has extended taxes to the tax collector, with an affixed affidavit, subscribed by him, as follows: “I, ____, Auditor of ____ County, swear that the attached roll is a reproduction of the roll prepared by the assessor and corrected by the State Board of Equalization; and that I have reckoned the respective sums due as taxes and have added the columns of valuations and taxes as required by law.” (c) If the extended roll is retained in electronic data-processing equipment and no physical document is prepared and if the tax bills are, with the consent of the tax collector and the approval of the board of supervisors, machine prepared, the auditor shall, on or before the fourth Monday in September, deliver the assessment roll to the assessor, and shall, on or before October 16, deliver the completed tax bills to the tax collector with an affidavit, subscribed by him, as follows: “I, ____, Auditor of ____ County, swear that the tax bills herewith submitted to you are the result of extending the roll prepared by the assessor and corrected by the State Board of Equalization and that I have determined the respective sums due as taxes, in the total amount of $____, as required by law.” (Amended by Stats. 1972, Ch. 1384.)
  135. 2602.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 5. COLLECTION OF TAXES [2501 - 3205] ( Part 5 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 2. Collection Generally [2601 - 2636] ( Chapter 2 enacted by Stats. 1939, Ch. 154. )

    Verify source ↗

    The tax collector must collect all property taxes.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 5. COLLECTION OF TAXES [2501 - 3205] ( Part 5 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 2. Collection Generally [2601 - 2636] ( Chapter 2 enacted by Stats. 1939, Ch. 154. ) ## 2602. The tax collector shall collect all property taxes. (Amended by Stats. 1974, Ch. 166.)
  136. 2603.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 5. COLLECTION OF TAXES [2501 - 3205] ( Part 5 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 2. Collection Generally [2601 - 2636] ( Chapter 2 enacted by Stats. 1939, Ch. 154. )

    Verify source ↗

    When the auditor delivers the local assessment roll to the tax collector, the auditor must charge the collector with the taxes listed on that roll and on the board roll.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 5. COLLECTION OF TAXES [2501 - 3205] ( Part 5 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 2. Collection Generally [2601 - 2636] ( Chapter 2 enacted by Stats. 1939, Ch. 154. ) ## 2603. At the time the auditor delivers the local assessment roll to the tax collector, he shall charge the collector with the taxes extended thereon, together with the taxes extended on the board roll. (Amended by Stats. 1981, Ch. 261, Sec. 21.)
  137. 2604.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 5. COLLECTION OF TAXES [2501 - 3205] ( Part 5 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 2. Collection Generally [2601 - 2636] ( Chapter 2 enacted by Stats. 1939, Ch. 154. )

    Verify source ↗

    If taxable property is added to the roll after it has been delivered to the tax collector, the auditor must immediately compute and enter the tax and other charges and update the account with the tax collector.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 5. COLLECTION OF TAXES [2501 - 3205] ( Part 5 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 2. Collection Generally [2601 - 2636] ( Chapter 2 enacted by Stats. 1939, Ch. 154. ) ## 2604. When property the taxes on which are to be collected by the tax collector is placed on the roll after it has been delivered to the tax collector, the auditor shall immediately compute and enter the tax and other charges and make the necessary changes in his account with the tax collector. (Enacted by Stats. 1939, Ch. 154.)
  138. 2605.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 5. COLLECTION OF TAXES [2501 - 3205] ( Part 5 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 2. Collection Generally [2601 - 2636] ( Chapter 2 enacted by Stats. 1939, Ch. 154. )

    Verify source ↗

    Some secured-roll taxes are due and payable on November 1.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 5. COLLECTION OF TAXES [2501 - 3205] ( Part 5 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 2. Collection Generally [2601 - 2636] ( Chapter 2 enacted by Stats. 1939, Ch. 154. ) ## 2605. The following taxes on the secured roll are due and payable November 1: (a) All taxes on personal property. (b) Half the taxes on real property, and if the amount is not evenly divisible by two, the odd cent is also due and payable unless the roll shows the odd cent as part of the second installment. (Amended by Stats. 1997, Ch. 546, Sec. 4. Effective January 1, 1998.)
  139. 2606.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 5. COLLECTION OF TAXES [2501 - 3205] ( Part 5 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 2. Collection Generally [2601 - 2636] ( Chapter 2 enacted by Stats. 1939, Ch. 154. )

    Verify source ↗

    The second half of taxes on real property on the secured roll is due and payable on February 1.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 5. COLLECTION OF TAXES [2501 - 3205] ( Part 5 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 2. Collection Generally [2601 - 2636] ( Chapter 2 enacted by Stats. 1939, Ch. 154. ) ## 2606. The second half of taxes on real property on the secured roll is due and payable February 1. (Amended by Stats. 1997, Ch. 546, Sec. 5. Effective January 1, 1998.)
  140. 2607.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 5. COLLECTION OF TAXES [2501 - 3205] ( Part 5 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 2. Collection Generally [2601 - 2636] ( Chapter 2 enacted by Stats. 1939, Ch. 154. )

    Verify source ↗

    Real property tax may be paid in full when the first installment is due, and the tax collector must accept current-year tax payments even if prior-year delinquencies exist.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 5. COLLECTION OF TAXES [2501 - 3205] ( Part 5 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 2. Collection Generally [2601 - 2636] ( Chapter 2 enacted by Stats. 1939, Ch. 154. ) ## 2607. The entire tax on real property may be paid when the first installment is due and payable or at any time thereafter until the properties on the current roll become tax defaulted. The second installment may be paid separately only if the first installment has been paid. The tax collector shall accept payment of current year taxes even though prior year delinquencies on the real property may exist. The acceptance of that payment shall not affect the validity of any sale in satisfaction of a lien for defaulted taxes. (Amended by Stats. 1997, Ch. 546, Sec. 6. Effective January 1, 1998.)
  141. 2607.1.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 5. COLLECTION OF TAXES [2501 - 3205] ( Part 5 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 2. Collection Generally [2601 - 2636] ( Chapter 2 enacted by Stats. 1939, Ch. 154. )

    Verify source ↗

    If the board of supervisors authorizes it, the tax collector must accept payment of the second real-property tax installment at a discounted amount when payment is made on or before the first installment due date.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 5. COLLECTION OF TAXES [2501 - 3205] ( Part 5 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 2. Collection Generally [2601 - 2636] ( Chapter 2 enacted by Stats. 1939, Ch. 154. ) ## 2607.1. Upon authorization of the board of supervisors, the tax collector shall accept payment of the second installment of the tax on real property at a discounted amount, as established annually by the board, if payment is made on or before the date the first installment is due. (Added by Stats. 1983, Ch. 534, Sec. 4.)
  142. 2608.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 5. COLLECTION OF TAXES [2501 - 3205] ( Part 5 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 2. Collection Generally [2601 - 2636] ( Chapter 2 enacted by Stats. 1939, Ch. 154. )

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    The tax collector may set an earlier payment date before the due date.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 5. COLLECTION OF TAXES [2501 - 3205] ( Part 5 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 2. Collection Generally [2601 - 2636] ( Chapter 2 enacted by Stats. 1939, Ch. 154. ) ## 2608. The tax collector may fix a date preceding the due date when payments may be made. (Enacted by Stats. 1939, Ch. 154.)
  143. 2609.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 5. COLLECTION OF TAXES [2501 - 3205] ( Part 5 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 2. Collection Generally [2601 - 2636] ( Chapter 2 enacted by Stats. 1939, Ch. 154. )

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    The tax collector must publish an annual notice by November 1 listing when secured-roll taxes are due, when they become delinquent, any delinquency penalties and costs, and where and when payment can be made.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 5. COLLECTION OF TAXES [2501 - 3205] ( Part 5 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 2. Collection Generally [2601 - 2636] ( Chapter 2 enacted by Stats. 1939, Ch. 154. ) ## 2609. On or before November 1 of each year, the tax collector shall publish a notice specifying: (a) The dates when taxes on the secured roll will be due. (b) The times when these taxes will be delinquent. (c) The penalties and costs for delinquency. (d) That all taxes may be paid when the first installment is due. (e) The times and places at which payment of taxes may be made. (Amended by Stats. 2015, Ch. 454, Sec. 8. (SB 803) Effective January 1, 2016.)
  144. 261.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 2. ASSESSMENT [201 - 1367] ( Part 2 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Taxation Base [201 - 287] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 2. Procedure to Claim Exemptions [251 - 261] ( Article 2 enacted by Stats. 1939, Ch. 154. )

    Verify source ↗

    To get the veterans’ or welfare property tax exemption, the claimant generally must have the property interest recorded by the lien date, unless a subdivision-specific alternative filing applies.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 2. ASSESSMENT [201 - 1367] ( Part 2 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Taxation Base [201 - 287] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 2. Procedure to Claim Exemptions [251 - 261] ( Article 2 enacted by Stats. 1939, Ch. 154. ) ## 261. (a) Except as otherwise provided in subdivisions (b) and (c), as a prerequisite to the allowance of either the veterans’ or welfare exemption with respect to taxes on real property, the interest of the claimant in the property must be of record on the lien date in the office of the recorder of the county in which the property is located. Failure of the claimant to establish the fact of such recordation to the assessor constitutes a waiver of the exemption. (b) A claimant for the veterans’ exemption who on the lien date has an interest in real property consisting of an unrecorded contract of sale may in lieu of the recordation pursuant to subdivision (a) furnish or show the contract to the assessor and file an affidavit with the assessor stating all of the following: (1) That he purchased the real property pursuant to such unrecorded contract of sale. (2) That under such unrecorded contract of sale he is obligated and responsible for the payment of the taxes. (c) A claimant for the welfare exemption which on the lien date has a possessory interest in publicly owned land, owns water rights, or owns improvements on land owned by another may in lieu of the recordation pursuant to subdivision (a) file a copy of the document giving rise to that possessory interest or water rights or file a written statement attesting to the separate ownership of those improvements with the assessor. That document copy or written statement shall not be required annually following the year in which it has been filed but shall remain in effect until such time as that possessory interest terminates or ownership of the water rights or improvements transfers. (Amended by Stats. 1984, Ch. 678, Sec. 16.)
  145. 2610.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 5. COLLECTION OF TAXES [2501 - 3205] ( Part 5 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 2. Collection Generally [2601 - 2636] ( Chapter 2 enacted by Stats. 1939, Ch. 154. )

    Verify source ↗

    The notice must be published once a week for two weeks, or posted in three public places in each township if there is no newspaper in the county.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 5. COLLECTION OF TAXES [2501 - 3205] ( Part 5 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 2. Collection Generally [2601 - 2636] ( Chapter 2 enacted by Stats. 1939, Ch. 154. ) ## 2610. The notice shall be published once a week for two weeks in a newspaper, if there is one published in the county, or, if none, by posting it in three public places in each township. (Enacted by Stats. 1939, Ch. 154.)
  146. 2610.5.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 5. COLLECTION OF TAXES [2501 - 3205] ( Part 5 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 2. Collection Generally [2601 - 2636] ( Chapter 2 enacted by Stats. 1939, Ch. 154. )

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    The tax collector must mail or electronically send county tax bills by November 1 each year, unless no taxes are due. Missing a bill does not remove the tax lien or stop penalties, but certain penalties must be canceled in specified situations.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 5. COLLECTION OF TAXES [2501 - 3205] ( Part 5 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 2. Collection Generally [2601 - 2636] ( Chapter 2 enacted by Stats. 1939, Ch. 154. ) ## 2610.5. Annually, on or before November 1, the tax collector shall mail or electronically transmit a county tax bill or a copy thereof for every property on the secured roll. This requirement need not be met where no taxes are due. Failure to receive a tax bill shall not relieve the lien of taxes, nor shall it prevent the imposition of penalties imposed by this code. However, the penalty imposed for delinquent taxes as provided by any section of this code shall be canceled if the assessee or fee owner demonstrates to the tax collector that delinquency is due to the tax collector’s failure to mail or electronically transmit the tax bill to the address provided on the tax roll or electronic address provided and authorized by the taxpayer to the tax collector. Penalties imposed may be canceled if the board of supervisors, upon recommendation of the tax collector, has authorized the tax collector to establish, and the tax collector has so established, specific procedures for the consideration of penalty cancellations. Those procedures may provide that penalties imposed may be canceled by resolution of the county board of supervisors upon the recommendation of the tax collector if the assessees or fee owners demonstrate to the tax collector that the delinquency is due to the county’s failure to send a notice of taxes to the owner of property acquired after the lien date on the secured roll, provided payment of the amount of taxes due, minus any penalties and costs, is made no later than June 30 of the fiscal year in which the property owner is named as the assessee for taxes coming due. With respect to a late, amended, or corrected tax bill, the penalties imposed for delinquent taxes shall be canceled if the tax amount is paid within 30 days following the date that bill is mailed or electronically transmitted. Under no circumstance shall a taxpayer have fewer than 30 days to pay without penalty. (Amended by Stats. 1999, Ch. 941, Sec. 23. Effective January 1, 2000.)
  147. 2610.6.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 5. COLLECTION OF TAXES [2501 - 3205] ( Part 5 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 2. Collection Generally [2601 - 2636] ( Chapter 2 enacted by Stats. 1939, Ch. 154. )

    Verify source ↗

    If the tax collector sends a tax bill to someone for property assessed to another person who can pay for that other person, the tax collector must also send the assessee an information copy that clearly says it is not a bill.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 5. COLLECTION OF TAXES [2501 - 3205] ( Part 5 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 2. Collection Generally [2601 - 2636] ( Chapter 2 enacted by Stats. 1939, Ch. 154. ) ## 2610.6. When the tax collector sends a tax bill to any person respecting property which has been assessed to another and who has the power, pursuant to written or oral authorization, to pay the taxes on behalf of another, the tax collector shall send to the assessee an information copy of the tax bill, except, that the copy shall state plainly that the copy is not a bill and that the original bill has been sent to another person for payment. (Added by renumbering Section 2770 by Stats. 1988, Ch. 830, Sec. 8. Applicable July 1, 1989, by Sec. 31 of Ch. 830.)
  148. 2610.8.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 5. COLLECTION OF TAXES [2501 - 3205] ( Part 5 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 2. Collection Generally [2601 - 2636] ( Chapter 2 enacted by Stats. 1939, Ch. 154. )

    Verify source ↗

    This section requires a disclosure on each qualifying tax bill and applies only to counties over 4,000,000 population, unless a smaller county adopts it by resolution.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 5. COLLECTION OF TAXES [2501 - 3205] ( Part 5 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 2. Collection Generally [2601 - 2636] ( Chapter 2 enacted by Stats. 1939, Ch. 154. ) ## 2610.8. (a) A disclosure shall be printed on each tax bill for properties that have been purchased, newly constructed, or changed in ownership in the year preceding the tax bill that includes all of the following information: (1) A brief summary of the availability of the property tax relief under Section 69.6. (2) A brief summary of deferment procedures under Section 2636.1. (b) (1) This section shall apply to counties with a population of over 4,000,000, as determined by the 2020 federal census. (2) This section shall not apply to a county with a population of 4,000,000 or less, as determined by the 2020 federal census, unless the county’s board of supervisors, after consultation with the county assessor, county auditor, county treasurer, and county tax collector, pass a resolution implementing the requirements of this section. (Added by Stats. 2022, Ch. 712, Sec. 1. (SB 989) Effective September 28, 2022.)
  149. 2611.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 5. COLLECTION OF TAXES [2501 - 3205] ( Part 5 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 2. Collection Generally [2601 - 2636] ( Chapter 2 enacted by Stats. 1939, Ch. 154. )

    Verify source ↗

    Tax bills must include a notice saying that unpaid taxes may require payment of penalties, costs, redemption penalties, and a redemption fee.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 5. COLLECTION OF TAXES [2501 - 3205] ( Part 5 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 2. Collection Generally [2601 - 2636] ( Chapter 2 enacted by Stats. 1939, Ch. 154. ) ## 2611. A notice shall be printed on all tax bills specifying that if taxes are unpaid, it will be necessary as provided by law to pay: (a) Delinquency penalties. (b) Costs. (c) Redemption penalties. (d) Redemption fee. (Amended by Stats. 1949, Ch. 247.)
  150. 2611.1.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 5. COLLECTION OF TAXES [2501 - 3205] ( Part 5 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 2. Collection Generally [2601 - 2636] ( Chapter 2 enacted by Stats. 1939, Ch. 154. )

    Verify source ↗

    Certain county tax collection officials may apply to the board of supervisors for discharge from accountability.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 5. COLLECTION OF TAXES [2501 - 3205] ( Part 5 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 2. Collection Generally [2601 - 2636] ( Chapter 2 enacted by Stats. 1939, Ch. 154. ) ## 2611.1. Any county department, officer, or employee charged by law with the collection of any county tax assessment, penalty or cost, license fees or money owing the county for any reason, that is due and payable, may file a verified application with the board of supervisors for a discharge from accountability for the collection of the tax assessment, penalty or cost, license fees or money owing the county for any reason in accordance with Sections 25257, 25258, 25259, and 25259.5 of the Government Code. (Amended by Stats. 2011, Ch. 352, Sec. 3. (SB 948) Effective January 1, 2012.)
  151. 2611.2.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 5. COLLECTION OF TAXES [2501 - 3205] ( Part 5 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 2. Collection Generally [2601 - 2636] ( Chapter 2 enacted by Stats. 1939, Ch. 154. )

    Verify source ↗

    An application for a discharge of accountability must include the amount owed, who owes it, the estimated collection cost, and any other supporting facts, unless the board of supervisors decides detailed information is not warranted.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 5. COLLECTION OF TAXES [2501 - 3205] ( Part 5 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 2. Collection Generally [2601 - 2636] ( Chapter 2 enacted by Stats. 1939, Ch. 154. ) ## 2611.2. The application for a discharge of accountability shall include: (a) A statement of the nature of the amount owing. (b) The names of the assessees or persons liable and the amount owed by each. (c) The estimated cost of collection. (d) Any other fact warranting the discharge, except where the board of supervisors determines that the circumstances do not warrant the furnishing of detailed information. (Added by Stats. 1957, Ch. 1360.)
  152. 2611.3.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 5. COLLECTION OF TAXES [2501 - 3205] ( Part 5 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 2. Collection Generally [2601 - 2636] ( Chapter 2 enacted by Stats. 1939, Ch. 154. )

    Verify source ↗

    The board of supervisors may order a department, officer, or employee discharged from further accountability and direct the county auditor to adjust the related charge by the same amount.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 5. COLLECTION OF TAXES [2501 - 3205] ( Part 5 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 2. Collection Generally [2601 - 2636] ( Chapter 2 enacted by Stats. 1939, Ch. 154. ) ## 2611.3. The board of supervisors may make an order discharging the department, officer, or employee, from further accountability and direct the county auditor to adjust any charge against said department, officer, or employee, in a like amount. (Added by Stats. 1957, Ch. 1360.)
  153. 2611.4.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 5. COLLECTION OF TAXES [2501 - 3205] ( Part 5 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 2. Collection Generally [2601 - 2636] ( Chapter 2 enacted by Stats. 1939, Ch. 154. )

    Verify source ↗

    County departments, officers, or employees may choose not to collect county amounts of $20 or less.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 5. COLLECTION OF TAXES [2501 - 3205] ( Part 5 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 2. Collection Generally [2601 - 2636] ( Chapter 2 enacted by Stats. 1939, Ch. 154. ) ## 2611.4. Any county department, officer or employee may refrain from collecting any tax, assessment, penalty or cost, license fees or money owing to the county where the amount to be collected is twenty dollars ($20) or less. Nothing in this section shall be construed as releasing any person from the payment of any tax, assessment, penalty or cost, license fee or any other money which is due and owing to the county. (Amended by Stats. 1992, Ch. 523, Sec. 15. Effective January 1, 1993.)
  154. 2611.5.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 5. COLLECTION OF TAXES [2501 - 3205] ( Part 5 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 2. Collection Generally [2601 - 2636] ( Chapter 2 enacted by Stats. 1939, Ch. 154. )

    Verify source ↗

    A county may use a cash difference fund for small payment differences of $20 or less if authorized by the board of supervisors, and it must keep a record of each use.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 5. COLLECTION OF TAXES [2501 - 3205] ( Part 5 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 2. Collection Generally [2601 - 2636] ( Chapter 2 enacted by Stats. 1939, Ch. 154. ) ## 2611.5. (a) At the option of a county and when authorized by resolution of the board of supervisors pursuant to Article 4 (commencing with Section 29370) of Chapter 2 of Division 3 of Title 3 of the Government Code, a cash difference fund may be used to increase the amount tendered to the county for the payment of any tax, assessments, penalty, cost, or interest that is due and owing the county, when a difference of twenty dollars ($20) or less exists. A record of each use of the fund shall be maintained, containing sufficient information to identify the name of the person whose account was credited and listing the amount of the difference. (b) Notwithstanding any provision of law, including Sections 29372, 29373, 29374, and 29375 of the Government Code, the cash difference fund may be expended, maintained, or replenished by accounting entries into a cash difference account and an overage account maintained in the county automated accounting system. All transfers between the fund and the accounts may be made and retained in electronic data processing equipment and no written report pursuant to Section 29373 of the Government Code, warrant, special warrant, or check warrant need be prepared by the auditor or treasurer. If approved pursuant to Section 29380.1 of the Government Code, replenishment of the cash difference account may be accomplished by the county auditor by a journal entry or electronic funds transfer from the county’s general fund. (c) When an amount paid to the county on any tax, assessment, penalty, cost, and interest exceed the amount due the county and the excess does not exceed twenty dollars ($20), the excess amount may be deposited into the overage account. If the excess amount is not so deposited, it shall be refunded to the person making the payment. (Amended by Stats. 2019, Ch. 258, Sec. 2. (SB 789) Effective January 1, 2020.)
  155. 2611.6.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 5. COLLECTION OF TAXES [2501 - 3205] ( Part 5 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 2. Collection Generally [2601 - 2636] ( Chapter 2 enacted by Stats. 1939, Ch. 154. )

    Verify source ↗

    County tax bills must include specified property-tax and assessment information, and the tax collector must not include an invalid hyperlink to a school district website.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 5. COLLECTION OF TAXES [2501 - 3205] ( Part 5 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 2. Collection Generally [2601 - 2636] ( Chapter 2 enacted by Stats. 1939, Ch. 154. ) ## 2611.6. The following information shall be included in each county tax bill, whether mailed or electronically transmitted, or in a separate statement accompanying the bill: (a) The full value of locally assessed property, including assessments made for irrigation district purposes in accordance with Section 26625.1 of the Water Code. (b) The tax rate required by Article XIII A of the California Constitution. (c) The rate or dollar amount of taxes levied in excess of the 1-percent limitation to pay for voter-approved indebtedness incurred before July 1, 1978, or bonded indebtedness for the acquisition or improvement of real property approved by two-thirds of the voters on or after June 4, 1986. (d) The amount of any special taxes and special assessments levied. (e) The amount of any tax rate reduction pursuant to Section 96.8, with the notation: “Tax reduction by (name of jurisdiction).” (f) The amount of any exemptions. Exemptions reimbursable by the state shall be shown separately. (g) The total taxes due and payable on the property covered by the bill. (h) Instructions on tendering payment, including the name and mailing address of the tax collector. (i) The billing of any special purpose parcel tax as required by paragraph (2) of subdivision (b) of Section 53087.4 of the Government Code, or any successor to that paragraph. (j) Information specifying all of the following: (1) That if the taxpayer disagrees with the assessed value as shown on the tax bill, the taxpayer has the right to an informal assessment review by contacting the assessor’s office. (2) That if the taxpayer and the assessor are unable to agree on a proper assessed value pursuant to an informal assessment review, the taxpayer has the right to file an application for reduction in assessment for the following year with the county board of equalization or the assessment appeals board, as applicable, and the time period during which the application will be accepted. (3) The address of the clerk of the county board of equalization or the assessment appeals board, as applicable, at which forms for an application for reduction in assessment may be obtained. (4) That if an informal or formal assessment review is requested, relief from penalties shall apply only to the difference between the county assessor’s final determination of value and the value on the assessment roll for the fiscal year covered. (k) (1) If a school district in that county provides for an exemption for a qualified special tax pursuant to subdivision (b) of Section 50079 of the Government Code and contracts or enters into an agreement with the county to collect the qualified special tax within the district, information indicating that school district parcel tax exemption information is available on the tax collector’s Internet Web site, including the URL of the tax collector’s Internet Web site homepage. (2) This subdivision shall only apply when the school district provides the information to the tax collector required by subdivision (e) of Section 50079 of the Government Code at least 90 days prior to the mailing or electronic transmittal of the county tax bill for that fiscal year. The tax collector shall not include on the county tax bill any hyperlink to a location on a school district Internet Web site that is invalid. (l) This section shall become operative on January 1, 2020. (Repealed and added by Stats. 2018, Ch. 391, Sec. 4. (AB 2458) Effective January 1, 2019. Section operative January 1, 2020, by its own provisions.)
  156. 2611.7.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 5. COLLECTION OF TAXES [2501 - 3205] ( Part 5 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 2. Collection Generally [2601 - 2636] ( Chapter 2 enacted by Stats. 1939, Ch. 154. )

    Verify source ↗

    A taxpayer may request a consolidated tax statement by written request made no later than September 1, and the tax collector must issue it if the section has been adopted and the listed conditions are met.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 5. COLLECTION OF TAXES [2501 - 3205] ( Part 5 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 2. Collection Generally [2601 - 2636] ( Chapter 2 enacted by Stats. 1939, Ch. 154. ) ## 2611.7. (a) Upon the written request of a taxpayer made no later than September 1, a tax collector who has adopted this section pursuant to paragraph (4) of subdivision (c) shall, subject to subdivisions (b) and (c), issue a consolidated tax statement, for all of the properties entered on the secured roll with respect to which the requesting taxpayer is the assessee. An adopting tax collector shall annually print on the back of each property tax bill a written notice to each taxpayer of a taxpayer’s authority under this section to request a consolidated tax statement, and of those fees, requirements, conditions, and limitations specified in subdivisions (b) and (c). (b) Any request made pursuant to this section for a consolidated tax statement is subject to all of the following conditions: (1) The request shall specify the assessor’s parcel number of each property on the secured roll for which the requesting taxpayer is the assessee. (2) With respect to any single parcel, only one named assessee may request and receive a consolidated tax statement. (3) Any request that is timely made pursuant to this section for a consolidated tax statement is valid only for those property taxes levied for the first five fiscal years following the making of the request. (c) (1) The tax collector may charge a fee for each request for a consolidated tax statement made pursuant to this section. Any fee charged pursuant to this paragraph shall be set at an amount not greater than that amount that will allow the tax collector to recover his or her costs incurred in implementing this section. (2) A consolidated tax statement issued pursuant to a request made pursuant to this section is not a tax bill and does not supersede or take the place of any tax bill. (3) No tax collector shall incur any legal liability with respect to any consolidated tax statement provided by the tax collector pursuant to this section. (4) This section does not apply to a county unless the tax collector of that county has adopted this section pursuant to a written memorandum transmitted to the county board of supervisors and recorded with the county recorder. (Amended by Stats. 1997, Ch. 17, Sec. 137. Effective January 1, 1998.)
  157. 2612.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 5. COLLECTION OF TAXES [2501 - 3205] ( Part 5 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 2. Collection Generally [2601 - 2636] ( Chapter 2 enacted by Stats. 1939, Ch. 154. )

    Verify source ↗

    A tax bill for tax-defaulted property must state in writing that prior year taxes are in default.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 5. COLLECTION OF TAXES [2501 - 3205] ( Part 5 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 2. Collection Generally [2601 - 2636] ( Chapter 2 enacted by Stats. 1939, Ch. 154. ) ## 2612. On the tax bill for tax-defaulted property shall appear in writing the fact that prior year taxes are in default. The tax bill may contain language such as “prior year taxes delinquent,” “prior year taxes in default,” “unpaid prior year taxes jeopardize property,” or any other language which would indicate the fact that the property is in jeopardy as a result of delinquent prior year taxes. (Amended by Stats. 1984, Ch. 988, Sec. 6. Effective September 11, 1984.)
  158. 2612.5.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 5. COLLECTION OF TAXES [2501 - 3205] ( Part 5 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 2. Collection Generally [2601 - 2636] ( Chapter 2 enacted by Stats. 1939, Ch. 154. )

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    The tax collector must issue separate tax bills for tax-defaulted property and property that is not tax delinquent. If those properties were combined in one assessment, the tax collector may ask the assessor to separate the valuation, and the assessor must do so within 10 days and notify the auditor.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 5. COLLECTION OF TAXES [2501 - 3205] ( Part 5 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 2. Collection Generally [2601 - 2636] ( Chapter 2 enacted by Stats. 1939, Ch. 154. ) ## 2612.5. The tax collector shall issue separate tax bills for tax-defaulted property and property which is not tax delinquent. Where tax-defaulted property and property which is not tax delinquent have been included or combined in one assessment, the tax collector may request the assessor to make a separate valuation of each such property, and the assessor shall within 10 days from and after the date of any such request make each such valuation and notify the auditor thereof. (Amended by Stats. 1984, Ch. 988, Sec. 7. Effective September 11, 1984.)
  159. 2612.6.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 5. COLLECTION OF TAXES [2501 - 3205] ( Part 5 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 2. Collection Generally [2601 - 2636] ( Chapter 2 enacted by Stats. 1939, Ch. 154. )

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    The auditor must enter descriptions and separate valuations on the roll instead of the original assessment, compute the taxes and penalties, and notify the tax collector.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 5. COLLECTION OF TAXES [2501 - 3205] ( Part 5 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 2. Collection Generally [2601 - 2636] ( Chapter 2 enacted by Stats. 1939, Ch. 154. ) ## 2612.6. The auditor shall enter the descriptions and the separate valuations on the roll in lieu of the original assessment, shall compute the taxes and penalties thereon and notify the tax collector thereof. (Added by Stats. 1957, Ch. 850.)
  160. 2613.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 5. COLLECTION OF TAXES [2501 - 3205] ( Part 5 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 2. Collection Generally [2601 - 2636] ( Chapter 2 enacted by Stats. 1939, Ch. 154. )

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    Taxes must be paid at the tax collector’s office unless the board of supervisors orders another or additional collection location.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 5. COLLECTION OF TAXES [2501 - 3205] ( Part 5 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 2. Collection Generally [2601 - 2636] ( Chapter 2 enacted by Stats. 1939, Ch. 154. ) ## 2613. All taxes shall be paid at the tax collector’s office unless the board of supervisors, upon recommendation of the tax collector and on or before the day when payments may be made, orders that taxes be collected in any other or additional location, in addition to a location within the county. (Amended by Stats. 2007, Ch. 340, Sec. 4. Effective January 1, 2008.)
  161. 2614.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 5. COLLECTION OF TAXES [2501 - 3205] ( Part 5 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 2. Collection Generally [2601 - 2636] ( Chapter 2 enacted by Stats. 1939, Ch. 154. )

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    The tax collector must record the fact and date of payment on the relevant roll or delinquent roll.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 5. COLLECTION OF TAXES [2501 - 3205] ( Part 5 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 2. Collection Generally [2601 - 2636] ( Chapter 2 enacted by Stats. 1939, Ch. 154. ) ## 2614. The tax collector shall mark the fact and date of payment on the roll or delinquent roll, opposite the tax to which the payment relates. (Amended by Stats. 1943, Ch. 409.)
  162. 2614.5.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 5. COLLECTION OF TAXES [2501 - 3205] ( Part 5 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 2. Collection Generally [2601 - 2636] ( Chapter 2 enacted by Stats. 1939, Ch. 154. )

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    The tax collector may adopt a procedure showing payment facts and dates on machine-prepared lists if the county board of supervisors approves it by resolution.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 5. COLLECTION OF TAXES [2501 - 3205] ( Part 5 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 2. Collection Generally [2601 - 2636] ( Chapter 2 enacted by Stats. 1939, Ch. 154. ) ## 2614.5. The tax collector may, when approved by resolution of the board of supervisors of such county, adopt a procedure showing the fact and date of payment on machine-prepared lists. (Added by Stats. 1965, Ch. 835.)
  163. 2615.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 5. COLLECTION OF TAXES [2501 - 3205] ( Part 5 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 2. Collection Generally [2601 - 2636] ( Chapter 2 enacted by Stats. 1939, Ch. 154. )

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    The tax collector must give a receipt when taxes are paid in cash or when the payer asks for one, and the receipt must be free.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 5. COLLECTION OF TAXES [2501 - 3205] ( Part 5 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 2. Collection Generally [2601 - 2636] ( Chapter 2 enacted by Stats. 1939, Ch. 154. ) ## 2615. Whenever taxes are paid in cash or whenever a receipt is requested at the time of payment by the person paying the tax, the tax collector shall give a receipt to the person making payment, specifying each of the following: (a) The amount paid. (b) The fiscal year and the installment of taxes to which the payment applies. (c) The description of the property. The receipt shall be issued without charge. (Amended by Stats. 1981, Ch. 1012, Sec. 1.)
  164. 2615.5.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 5. COLLECTION OF TAXES [2501 - 3205] ( Part 5 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 2. Collection Generally [2601 - 2636] ( Chapter 2 enacted by Stats. 1939, Ch. 154. )

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    When certain taxpayers receive a county tax bill, the bill must include a notice about homeowners’ exemption ineligibility, and taxpayers must tell the assessor when they are no longer eligible.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 5. COLLECTION OF TAXES [2501 - 3205] ( Part 5 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 2. Collection Generally [2601 - 2636] ( Chapter 2 enacted by Stats. 1939, Ch. 154. ) ## 2615.5. When the county sends a tax bill or copy thereof to any homeowner who received the homeowners’ exemption in the immediately preceding year, except where such person has transferred title in the property since the immediately preceding lien date, or to any person who has filed an exemption claim during the preceding assessment year, the tax bill or copy shall be accompanied by a notice concerning ineligibility for the homeowners’ exemption. The notice shall inform the taxpayer of the circumstances under which he becomes ineligible for the exemption, of the penalties which are applicable if he allows the exemption to continue when he is not eligible for the exemption, and of his duty to inform the assessor when he is no longer eligible for the exemption. Failure to receive the notice shall not excuse the taxpayer of the duty to inform the assessor of his ineligibility for the exemption. (Added by Stats. 1979, Ch. 65.)
  165. 2615.6.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 5. COLLECTION OF TAXES [2501 - 3205] ( Part 5 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 2. Collection Generally [2601 - 2636] ( Chapter 2 enacted by Stats. 1939, Ch. 154. )

    Verify source ↗

    When a county sends a tax bill, it must include a notice about senior citizens’ property tax assistance and postponement, and the Franchise Tax Board must prepare the notice text.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 5. COLLECTION OF TAXES [2501 - 3205] ( Part 5 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 2. Collection Generally [2601 - 2636] ( Chapter 2 enacted by Stats. 1939, Ch. 154. ) ## 2615.6. (a) When the county sends to any person a tax bill, it shall be accompanied by a notice regarding property tax assistance and postponement for senior citizens under the Gonsalves-Deukmejian-Petris Senior Citizens Property Tax Assistance Law (Chapter 1 (commencing with Section 20501) of Part 10.5 of Division 2) and the Senior Citizens and Disabled Citizens Property Tax Postponement Law (Chapter 2 (commencing with Section 20581) of Part 10.5 of Division 2). The text of this notice shall be prepared by the Franchise Tax Board. (b) Subdivision (a) is inoperative for any lien date for which funding for the Gonsalves-Deukmejian-Petris Senior Citizens Property Tax Assistance Law (Chapter 1 (commencing with Section 20501) of Part 10.5 of Division 2), and for the Senior Citizens and Disabled Citizens Property Tax Postponement Law (Chapter 2 (commencing with Section 20581) of Part 10.5 of Division 2), is not provided by state law. If subdivision (a) has become inoperative under this subdivision, subdivision (a) shall become operative again commencing with the first lien date for which funding for these laws is provided by state law. (Amended by Stats. 2014, Ch. 71, Sec. 160. (SB 1304) Effective January 1, 2015.)
  166. 2616.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 5. COLLECTION OF TAXES [2501 - 3205] ( Part 5 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 2. Collection Generally [2601 - 2636] ( Chapter 2 enacted by Stats. 1939, Ch. 154. )

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    The tax collector must account to the auditor and file sworn statements at least once every 12 months, with one filing due the same day as the accounting.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 5. COLLECTION OF TAXES [2501 - 3205] ( Part 5 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 2. Collection Generally [2601 - 2636] ( Chapter 2 enacted by Stats. 1939, Ch. 154. ) ## 2616. Not less than once every 12 months and on dates approved by the auditor, the tax collector shall account to the auditor for all moneys collected during the preceding reporting period. On the same day he or she shall file with the auditor a statement under oath, showing that all money collected by him or her has been paid as required by law. Not less than once every 12 months and on dates approved by the auditor, the tax collector shall file with the auditor a statement under oath, showing an itemized account of all his or her transactions and receipts since his or her last settlement. In counties using a mechanized management reporting system in reporting information for a uniform four-week period, the board of supervisors, by ordinance, may provide for the duties required by this section to be performed on a corresponding uniform four-week period. (Amended by Stats. 1992, Ch. 523, Sec. 16. Effective January 1, 1993.)
  167. 2617.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 5. COLLECTION OF TAXES [2501 - 3205] ( Part 5 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 2. Collection Generally [2601 - 2636] ( Chapter 2 enacted by Stats. 1939, Ch. 154. )

    Verify source ↗

    Property taxes due on November 1 become delinquent on December 10 if unpaid, and a 10% delinquent penalty then applies.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 5. COLLECTION OF TAXES [2501 - 3205] ( Part 5 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 2. Collection Generally [2601 - 2636] ( Chapter 2 enacted by Stats. 1939, Ch. 154. ) ## 2617. All taxes due November 1, if unpaid, are delinquent at 5 p.m., or the close of business, whichever is later, on December 10, and thereafter a delinquent penalty of 10 percent attaches to them. (Amended by Stats. 1991, Ch. 532, Sec. 9.)
  168. 2618.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 5. COLLECTION OF TAXES [2501 - 3205] ( Part 5 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 2. Collection Generally [2601 - 2636] ( Chapter 2 enacted by Stats. 1939, Ch. 154. )

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    If the second half of real property taxes is unpaid, it becomes delinquent on April 10 at 5 p.m. or the close of business, whichever is later, and a 10% delinquent penalty attaches.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 5. COLLECTION OF TAXES [2501 - 3205] ( Part 5 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 2. Collection Generally [2601 - 2636] ( Chapter 2 enacted by Stats. 1939, Ch. 154. ) ## 2618. The second half of taxes on real property, if unpaid, is delinquent at 5 p.m., or the close of business, whichever is later, on April 10, and thereafter a delinquent penalty of 10 percent attaches to it. (Amended by Stats. 1991, Ch. 532, Sec. 10.)
  169. 2619.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 5. COLLECTION OF TAXES [2501 - 3205] ( Part 5 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 2. Collection Generally [2601 - 2636] ( Chapter 2 enacted by Stats. 1939, Ch. 154. )

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    If certain tax delinquency dates fall on a weekend or legal holiday, the delinquency time moves to the next business day at 5 p.m. or close of business, whichever is later.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 5. COLLECTION OF TAXES [2501 - 3205] ( Part 5 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 2. Collection Generally [2601 - 2636] ( Chapter 2 enacted by Stats. 1939, Ch. 154. ) ## 2619. If December 10 or April 10 falls on Saturday, Sunday or a legal holiday, the time of delinquency is at 5 p.m., or the close of business, whichever is later, on the next business day. If the board of supervisors, by adoption of an ordinance or resolution, closes the county’s offices for business prior to the time of delinquency on the “next business day” or for that whole day, that day shall be considered a legal holiday for purposes of this section. (Amended by Stats. 1994, Ch. 705, Sec. 20. Effective January 1, 1995.)
  170. 2621.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 5. COLLECTION OF TAXES [2501 - 3205] ( Part 5 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 2. Collection Generally [2601 - 2636] ( Chapter 2 enacted by Stats. 1939, Ch. 154. )

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    After the second installment of secured-roll taxes is delinquent, the tax collector must collect a cost for preparing delinquent tax records and giving notice of delinquency, up to $55 and no more than actual cost.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 5. COLLECTION OF TAXES [2501 - 3205] ( Part 5 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 2. Collection Generally [2601 - 2636] ( Chapter 2 enacted by Stats. 1939, Ch. 154. ) ## 2621. After the second installment of taxes on the secured roll is delinquent, the tax collector shall collect a cost of up to fifty-five dollars ($55), but no more than the actual cost, for preparing the delinquent tax records and giving notice of delinquency on each separate valuation on the secured roll of: (a) Real property, except possessory interests. (b) Possessory interests. (c) Personal property cross-secured to real property. The cost shall be collected even though the property appears on the roll due to a special assessment and no valuation of the property is given. (Amended by Stats. 2022, Ch. 451, Sec. 2. (SB 1494) Effective January 1, 2023.)
  171. 2623.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 5. COLLECTION OF TAXES [2501 - 3205] ( Part 5 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 2. Collection Generally [2601 - 2636] ( Chapter 2 enacted by Stats. 1939, Ch. 154. )

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    Before February 1, the auditor must compute and record delinquent penalties, total them, charge the tax collector, and deliver the secured roll.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 5. COLLECTION OF TAXES [2501 - 3205] ( Part 5 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 2. Collection Generally [2601 - 2636] ( Chapter 2 enacted by Stats. 1939, Ch. 154. ) ## 2623. Prior to February 1st, the auditor shall: (a) Compute and enter the delinquent penalty against all taxes on the secured roll not marked paid. (b) Foot the penalties. (c) Charge the tax collector with the total penalties due on the secured roll. (d) Deliver the secured roll to the tax collector. (Amended by Stats. 1953, Ch. 799.)
  172. 2624.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 5. COLLECTION OF TAXES [2501 - 3205] ( Part 5 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 2. Collection Generally [2601 - 2636] ( Chapter 2 enacted by Stats. 1939, Ch. 154. )

    Verify source ↗

    When the second half of real property taxes is delinquent, the tax collector must prepare a delinquent roll.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 5. COLLECTION OF TAXES [2501 - 3205] ( Part 5 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 2. Collection Generally [2601 - 2636] ( Chapter 2 enacted by Stats. 1939, Ch. 154. ) ## 2624. After the second half of taxes on real property is delinquent, the tax collector shall prepare a delinquent roll. In numerical or alphabetical order, the delinquent roll shall show all information on the secured roll relating to property the taxes on which are delinquent. (Amended by Stats. 1943, Ch. 409.)
  173. 2626.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 5. COLLECTION OF TAXES [2501 - 3205] ( Part 5 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 2. Collection Generally [2601 - 2636] ( Chapter 2 enacted by Stats. 1939, Ch. 154. )

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    The auditor must compare the delinquent roll with the secured roll by June 1, and if the delinquent roll is correct, make the listed adjustments and settlement. The tax collector must deliver the treasurer’s receipt to the auditor unless the treasurer is the collector, and must immediately account for any deficiency.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 5. COLLECTION OF TAXES [2501 - 3205] ( Part 5 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 2. Collection Generally [2601 - 2636] ( Chapter 2 enacted by Stats. 1939, Ch. 154. ) ## 2626. On or before June 1st, the auditor shall compare the delinquent roll, if one is prepared, with the secured roll. If satisfied the delinquent roll is correct, he shall: (a) Foot the unpaid taxes and penalties. (b) Credit the tax collector with the unpaid taxes and penalties on the secured roll. (c) Make a final settlement with him of all taxes and penalties charged against him on the secured roll. The tax collector shall deliver the treasurer’s receipt to the auditor, unless the treasurer is the collector, and shall immediately account for any deficiency. The secured roll shall remain in the tax collector’s office. (Amended by Stats. 1976, Ch. 142.)
  174. 2627.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 5. COLLECTION OF TAXES [2501 - 3205] ( Part 5 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 2. Collection Generally [2601 - 2636] ( Chapter 2 enacted by Stats. 1939, Ch. 154. )

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    Within three days after the settlement, the auditor must compute and enter penalties and costs on the delinquent roll, charge the tax collector with the amount due, and deliver the certified delinquent roll to the tax collector.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 5. COLLECTION OF TAXES [2501 - 3205] ( Part 5 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 2. Collection Generally [2601 - 2636] ( Chapter 2 enacted by Stats. 1939, Ch. 154. ) ## 2627. Within three days after this settlement, the auditor shall: (a) Compute and enter the penalties and costs on the delinquent roll. (b) Charge the tax collector with the amount due on the delinquent roll. (c) Deliver the delinquent roll duly certified, to the tax collector. (Amended by Stats. 1943, Ch. 409.)
  175. 2628.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 5. COLLECTION OF TAXES [2501 - 3205] ( Part 5 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 2. Collection Generally [2601 - 2636] ( Chapter 2 enacted by Stats. 1939, Ch. 154. )

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    The tax collector must make an annual collections report by August 10 and provide it to the auditor for audit purposes.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 5. COLLECTION OF TAXES [2501 - 3205] ( Part 5 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 2. Collection Generally [2601 - 2636] ( Chapter 2 enacted by Stats. 1939, Ch. 154. ) ## 2628. Annually, on or before August 10th, the tax collector shall make a collections report on the secured roll and, if one is prepared, the delinquent roll, and make it or them available to the auditor for purposes of audit. (Amended by Stats. 1976, Ch. 142.)
  176. 2629.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 5. COLLECTION OF TAXES [2501 - 3205] ( Part 5 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 2. Collection Generally [2601 - 2636] ( Chapter 2 enacted by Stats. 1939, Ch. 154. )

    Verify source ↗

    The auditor must administer an oath to the tax collector and have it written and subscribed on the delinquent roll.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 5. COLLECTION OF TAXES [2501 - 3205] ( Part 5 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 2. Collection Generally [2601 - 2636] ( Chapter 2 enacted by Stats. 1939, Ch. 154. ) ## 2629. The auditor shall then administer an oath to the tax collector, to be written and subscribed on the delinquent roll, that all property on the delinquent roll on which taxes have been paid has been credited with the payment on the delinquent roll. (Amended by Stats. 1943, Ch. 409.)
  177. 2630.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 5. COLLECTION OF TAXES [2501 - 3205] ( Part 5 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 2. Collection Generally [2601 - 2636] ( Chapter 2 enacted by Stats. 1939, Ch. 154. )

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    The auditor must total the unpaid amount on the delinquent roll, credit the tax collector with that amount, and make a final settlement with the tax collector.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 5. COLLECTION OF TAXES [2501 - 3205] ( Part 5 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 2. Collection Generally [2601 - 2636] ( Chapter 2 enacted by Stats. 1939, Ch. 154. ) ## 2630. The auditor shall foot the amount unpaid on the delinquent roll, credit the tax collector with the amount, and have a final settlement with him. (Amended by Stats. 1945, Ch. 694.)
  178. 2631.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 5. COLLECTION OF TAXES [2501 - 3205] ( Part 5 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 2. Collection Generally [2601 - 2636] ( Chapter 2 enacted by Stats. 1939, Ch. 154. )

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    If a roll or delinquent roll is transferred between collectors, the auditor must credit one collector and charge the other with the amount outstanding.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 5. COLLECTION OF TAXES [2501 - 3205] ( Part 5 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 2. Collection Generally [2601 - 2636] ( Chapter 2 enacted by Stats. 1939, Ch. 154. ) ## 2631. If the roll or delinquent roll is transferred from one collector to another, the auditor shall credit the one and charge the other with the amount outstanding. (Amended by Stats. 1943, Ch. 409.)
  179. 2632.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 5. COLLECTION OF TAXES [2501 - 3205] ( Part 5 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 2. Collection Generally [2601 - 2636] ( Chapter 2 enacted by Stats. 1939, Ch. 154. )

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    If a tax collector refuses or neglects for five days to make required payments or settlements, the collector is liable for the full amount of taxes charged against him.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 5. COLLECTION OF TAXES [2501 - 3205] ( Part 5 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 2. Collection Generally [2601 - 2636] ( Chapter 2 enacted by Stats. 1939, Ch. 154. ) ## 2632. If the tax collector refuses or neglects for five days to make payments or settlements as required in this division, he is liable for the full amount of taxes charged against him. (Enacted by Stats. 1939, Ch. 154.)
  180. 2633.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 5. COLLECTION OF TAXES [2501 - 3205] ( Part 5 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 2. Collection Generally [2601 - 2636] ( Chapter 2 enacted by Stats. 1939, Ch. 154. )

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    The district attorney must sue the tax collector and his sureties for the stated amount, and the controller or board of supervisors may require that suit if the district attorney neglects the duty.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 5. COLLECTION OF TAXES [2501 - 3205] ( Part 5 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 2. Collection Generally [2601 - 2636] ( Chapter 2 enacted by Stats. 1939, Ch. 154. ) ## 2633. The district attorney shall bring suit against the tax collector and his sureties for this amount. The controller or the board of supervisors may require the district attorney to bring this suit if he neglects his duty. After the suit is commenced, no credit shall be made to the collector for taxes outstanding. (Enacted by Stats. 1939, Ch. 154.)
  181. 2634.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 5. COLLECTION OF TAXES [2501 - 3205] ( Part 5 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 2. Collection Generally [2601 - 2636] ( Chapter 2 enacted by Stats. 1939, Ch. 154. )

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    A tax roll, delinquent roll, or certified copy from the tax collector is treated as prima facie evidence of several tax facts.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 5. COLLECTION OF TAXES [2501 - 3205] ( Part 5 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 2. Collection Generally [2601 - 2636] ( Chapter 2 enacted by Stats. 1939, Ch. 154. ) ## 2634. The roll or delinquent roll or a copy certified by the tax collector, showing unpaid taxes against any property, is prima facie evidence of the assessment, the property assessed, the delinquency, the amount of taxes due and unpaid, and that there has been compliance with all forms of law relating to assessment and levy of the taxes. (Amended by Stats. 1974, Ch. 1101.)
  182. 2635.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 5. COLLECTION OF TAXES [2501 - 3205] ( Part 5 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 2. Collection Generally [2601 - 2636] ( Chapter 2 enacted by Stats. 1939, Ch. 154. )

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    If taxes were paid by more than $20 too much, the tax collector must notify the taxpayer.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 5. COLLECTION OF TAXES [2501 - 3205] ( Part 5 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 2. Collection Generally [2601 - 2636] ( Chapter 2 enacted by Stats. 1939, Ch. 154. ) ## 2635. When the amount of taxes paid exceeds the amount due by more than twenty dollars ($20), the tax collector shall send notice of the overpayment to the taxpayer. The notice shall be mailed to the taxpayer’s last known address and shall state the amount of overpayment and that a refund claim may be filed pursuant to Chapter 5 (commencing with Section 5096) of Part 9. (Amended by Stats. 2019, Ch. 258, Sec. 3. (SB 789) Effective January 1, 2020.)
  183. 2635.5.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 5. COLLECTION OF TAXES [2501 - 3205] ( Part 5 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 2. Collection Generally [2601 - 2636] ( Chapter 2 enacted by Stats. 1939, Ch. 154. )

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    The tax collector may use a refund owed to a taxpayer or the taxpayer’s agent to pay delinquent taxes on the same property.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 5. COLLECTION OF TAXES [2501 - 3205] ( Part 5 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 2. Collection Generally [2601 - 2636] ( Chapter 2 enacted by Stats. 1939, Ch. 154. ) ## 2635.5. Notwithstanding any other law, the tax collector may apply any refund due a taxpayer, or the taxpayer’s agent, to any delinquent taxes due for the same property for which the same taxpayer, or his or her agent, is liable. (Amended by Stats. 2012, Ch. 161, Sec. 1. (AB 2643) Effective January 1, 2013.)
  184. 2636.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 5. COLLECTION OF TAXES [2501 - 3205] ( Part 5 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 2. Collection Generally [2601 - 2636] ( Chapter 2 enacted by Stats. 1939, Ch. 154. )

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    A tax collector may accept a taxpayer’s partial payment on a tax deficiency if the board of supervisors approves it.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 5. COLLECTION OF TAXES [2501 - 3205] ( Part 5 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 2. Collection Generally [2601 - 2636] ( Chapter 2 enacted by Stats. 1939, Ch. 154. ) ## 2636. Notwithstanding any other provision of law, in the case of a deficiency in the payment of taxes due and payable pursuant to this chapter, the tax collector, with the approval of the board of supervisors, may accept such partial payment from the taxpayer. Such partial payments are to be applied first to all penalties, interest and costs with the balance being applied to the taxes due. The difference between the amount paid by the taxpayer and the amount due shall be treated as a delinquent tax in the same manner as any other delinquent tax. (Amended by Stats. 1979, Ch. 242.)
  185. 27.

    ## Revenue and Taxation Code - RTC ## GENERAL PROVISIONS ( General Provisions enacted by Stats. 1939, Ch. 154. )

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    This section says the code, and amendments made by statutes enacted at the fifty-third legislative session, take effect on February 1, 1941.

    ## Revenue and Taxation Code - RTC ## GENERAL PROVISIONS ( General Provisions enacted by Stats. 1939, Ch. 154. ) ## 27. This code, and any amendment hereto made by any statute enacted at the fifty-third session of the Legislature, takes effect on February 1, 1941. (Enacted by Stats. 1939, Ch. 154.)
  186. 270.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 2. ASSESSMENT [201 - 1367] ( Part 2 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Taxation Base [201 - 287] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 2.5. Late Exemption Claims [270 - 279.5] ( Article 2.5 added by Stats. 1971, Ch. 303. )

    Verify source ↗

    Late exemption claims can still receive partial tax relief if an exemption application is filed by the specified lien date, or a reduced amount if filed later.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 2. ASSESSMENT [201 - 1367] ( Part 2 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Taxation Base [201 - 287] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 2.5. Late Exemption Claims [270 - 279.5] ( Article 2.5 added by Stats. 1971, Ch. 303. ) ## 270. (a) With respect to property as to which the college, cemetery, church, religious, exhibition, veterans’ organization, free public libraries, free museums, public schools, community colleges, state colleges, state universities, tribal housing, or welfare exemption was available but for which a timely application for exemption was not filed: (1) Ninety percent of any tax or penalty or interest thereon shall be canceled or refunded provided an appropriate application for exemption is filed on or before the lien date in the calendar year next succeeding the calendar year in which the exemption was not claimed by a timely application. (2) If the application is filed after the date specified in paragraph (1), 85 percent of any tax or penalty or interest thereon shall be canceled or refunded provided an appropriate application for exemption is filed and relief is not authorized under Section 214.01 or 271. (b) Notwithstanding the provisions of subdivision (a), any tax or penalty or interest thereon exceeding two hundred fifty dollars ($250) in total amount shall be canceled or refunded provided it is imposed upon property entitled to relief under subdivision (a) for which an appropriate claim for exemption has been filed. (c) With respect to property as to which the welfare exemption or veterans’ organization exemption was available, all provisions of Section 254.5, other than the specified dates for the filing of affidavits and other acts, are applicable to this section. (Amended by Stats. 2002, Ch. 775, Sec. 17. Effective January 1, 2003.)
  187. 2700.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 5. COLLECTION OF TAXES [2501 - 3205] ( Part 5 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 2.1. Collection in Equal Installments [2700 - 2708] ( Chapter 2.1 added by Stats. 1945, Ch. 976. )

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    A county board of supervisors may, by resolution, make this chapter apply to that county if the resolution is adopted before the county auditor’s deadline.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 5. COLLECTION OF TAXES [2501 - 3205] ( Part 5 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 2.1. Collection in Equal Installments [2700 - 2708] ( Chapter 2.1 added by Stats. 1945, Ch. 976. ) ## 2700. Notwithstanding Sections 2605, 2606, 2607, 2617, 2618, 2621, and 2624, if so ordered by a resolution of the board of supervisors of any county, this chapter shall be applicable to that county, provided that the resolution shall be adopted prior to the time the county auditor is required to compute and enter on the secured roll the respective amounts due in installments as taxes for the assessment year in which the resolution becomes effective. This chapter shall apply only to that county and shall then apply until otherwise ordered by a resolution of the board of supervisors. (Amended by Stats. 2006, Ch. 538, Sec. 611. Effective January 1, 2007.)
  188. 2700.1.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 5. COLLECTION OF TAXES [2501 - 3205] ( Part 5 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 2.1. Collection in Equal Installments [2700 - 2708] ( Chapter 2.1 added by Stats. 1945, Ch. 976. )

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    Certain taxes, assessments, fees, or charges that become a lien on land and are collected with county or other secured-roll taxes must be paid in two installments.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 5. COLLECTION OF TAXES [2501 - 3205] ( Part 5 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 2.1. Collection in Equal Installments [2700 - 2708] ( Chapter 2.1 added by Stats. 1945, Ch. 976. ) ## 2700.1. Notwithstanding the provisions of any other law, any tax, assessment, fee or charge to become a lien on land and to be collected with county taxes or other taxes or assessments collected on the secured roll shall be payable in two (2) installments as specified in this chapter. (Added by Stats. 1961, Ch. 1926.)
  189. 2701.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 5. COLLECTION OF TAXES [2501 - 3205] ( Part 5 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 2.1. Collection in Equal Installments [2700 - 2708] ( Chapter 2.1 added by Stats. 1945, Ch. 976. )

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    Half the taxes on real and personal property on the secured roll are due November 1st.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 5. COLLECTION OF TAXES [2501 - 3205] ( Part 5 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 2.1. Collection in Equal Installments [2700 - 2708] ( Chapter 2.1 added by Stats. 1945, Ch. 976. ) ## 2701. Half the taxes on real and personal property on the secured roll are due November 1st, and if the amount is not evenly divisible by two, the odd cent is also due unless the roll shows the odd cent as part of the second installment. (Amended by Stats. 1949, Ch. 246.)
  190. 2702.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 5. COLLECTION OF TAXES [2501 - 3205] ( Part 5 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 2.1. Collection in Equal Installments [2700 - 2708] ( Chapter 2.1 added by Stats. 1945, Ch. 976. )

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    The second half of property taxes on the secured roll is due February 1st.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 5. COLLECTION OF TAXES [2501 - 3205] ( Part 5 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 2.1. Collection in Equal Installments [2700 - 2708] ( Chapter 2.1 added by Stats. 1945, Ch. 976. ) ## 2702. The second half of taxes on real and personal property on the secured roll is due February 1st. (Amended by Stats. 1955, Ch. 384.)
  191. 2703.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 5. COLLECTION OF TAXES [2501 - 3205] ( Part 5 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 2.1. Collection in Equal Installments [2700 - 2708] ( Chapter 2.1 added by Stats. 1945, Ch. 976. )

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    The section lets a taxpayer pay the secured-roll tax in parts and requires the tax collector to accept current-year tax payments even if there are prior-year delinquencies on the property.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 5. COLLECTION OF TAXES [2501 - 3205] ( Part 5 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 2.1. Collection in Equal Installments [2700 - 2708] ( Chapter 2.1 added by Stats. 1945, Ch. 976. ) ## 2703. The entire tax on the secured roll may be paid when the first half is due. The first half may be paid separately when the first half is due or at any time thereafter until the properties on the current roll become tax defaulted. The second half may be paid separately only if the first half has been paid. The tax collector shall accept payment of current year taxes even though prior year delinquencies on the real property may exist. The acceptance of that payment shall not affect the validity of any sale in satisfaction of a lien for defaulted taxes. (Amended by Stats. 1984, Ch. 988, Sec. 8. Effective September 11, 1984.)
  192. 2704.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 5. COLLECTION OF TAXES [2501 - 3205] ( Part 5 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 2.1. Collection in Equal Installments [2700 - 2708] ( Chapter 2.1 added by Stats. 1945, Ch. 976. )

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    If taxes due November 1 are unpaid, they become delinquent on December 10 and a 10% delinquent penalty attaches.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 5. COLLECTION OF TAXES [2501 - 3205] ( Part 5 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 2.1. Collection in Equal Installments [2700 - 2708] ( Chapter 2.1 added by Stats. 1945, Ch. 976. ) ## 2704. All taxes due November 1, if unpaid, are delinquent at 5 p.m., or the close of business, whichever is later, on December 10, and thereafter a delinquent penalty of 10 percent attaches to them. (Amended by Stats. 1991, Ch. 532, Sec. 12.)
  193. 2705.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 5. COLLECTION OF TAXES [2501 - 3205] ( Part 5 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 2.1. Collection in Equal Installments [2700 - 2708] ( Chapter 2.1 added by Stats. 1945, Ch. 976. )

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    If the second half of taxes on the secured roll is unpaid, it becomes delinquent on April 10 at 5 p.m. or the close of business, whichever is later, and a 10% delinquent penalty then applies.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 5. COLLECTION OF TAXES [2501 - 3205] ( Part 5 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 2.1. Collection in Equal Installments [2700 - 2708] ( Chapter 2.1 added by Stats. 1945, Ch. 976. ) ## 2705. The second half of taxes on the secured roll, if unpaid, is delinquent at 5 p.m., or the close of business, whichever is later, on April 10, and thereafter a delinquent penalty of 10 percent attaches to it. (Amended by Stats. 1991, Ch. 532, Sec. 13.)
  194. 2705.5.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 5. COLLECTION OF TAXES [2501 - 3205] ( Part 5 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 2.1. Collection in Equal Installments [2700 - 2708] ( Chapter 2.1 added by Stats. 1945, Ch. 976. )

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    If December 10 or April 10 falls on a weekend or legal holiday, delinquency occurs on the next business day at 5 p.m. or the close of business, whichever is later. The board of supervisors can also make a day count as a legal holiday by closing county offices under an ordinance or resolution.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 5. COLLECTION OF TAXES [2501 - 3205] ( Part 5 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 2.1. Collection in Equal Installments [2700 - 2708] ( Chapter 2.1 added by Stats. 1945, Ch. 976. ) ## 2705.5. If December 10 or April 10 falls on Saturday, Sunday or a legal holiday, the time of delinquency is at 5 p.m., or the close of business, whichever is later, on the next business day. If the board of supervisors, by adoption of an ordinance or resolution, closes the county’s offices for business prior to the time of delinquency on the “next business day” or for that whole day, that day shall be considered a legal holiday for purposes of this section. (Amended by Stats. 1994, Ch. 705, Sec. 21. Effective January 1, 1995.)
  195. 2706.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 5. COLLECTION OF TAXES [2501 - 3205] ( Part 5 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 2.1. Collection in Equal Installments [2700 - 2708] ( Chapter 2.1 added by Stats. 1945, Ch. 976. )

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    After the second installment of secured-roll taxes becomes delinquent, the tax collector must charge a delinquency-cost amount, capped at $55 and never more than the actual cost, for preparing delinquent tax records and giving notice.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 5. COLLECTION OF TAXES [2501 - 3205] ( Part 5 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 2.1. Collection in Equal Installments [2700 - 2708] ( Chapter 2.1 added by Stats. 1945, Ch. 976. ) ## 2706. After the second installment of taxes on the secured roll is delinquent, the tax collector shall collect a cost of up to fifty-five dollars ($55), but no more than the actual cost, for preparing the delinquent tax records and giving notice of delinquency on each separate valuation on the secured roll of: (a) Real property, except possessory interests. (b) Possessory interests. (c) Personal property cross-secured to real property. The cost shall be collected even though the property appears on the roll due to a special assessment and no valuation of the property is given. (Amended by Stats. 2022, Ch. 451, Sec. 3. (SB 1494) Effective January 1, 2023.)
  196. 2707.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 5. COLLECTION OF TAXES [2501 - 3205] ( Part 5 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 2.1. Collection in Equal Installments [2700 - 2708] ( Chapter 2.1 added by Stats. 1945, Ch. 976. )

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    After the second half of secured-roll taxes is delinquent, the tax collector must prepare a delinquent roll.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 5. COLLECTION OF TAXES [2501 - 3205] ( Part 5 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 2.1. Collection in Equal Installments [2700 - 2708] ( Chapter 2.1 added by Stats. 1945, Ch. 976. ) ## 2707. After the second half of taxes on the secured roll is delinquent, the tax collector shall prepare a delinquent roll. In numerical or alphabetical order, the delinquent roll shall show all information on the secured roll relating to property the taxes on which are delinquent. (Added by Stats. 1945, Ch. 976.)
  197. 2708.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 5. COLLECTION OF TAXES [2501 - 3205] ( Part 5 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 2.1. Collection in Equal Installments [2700 - 2708] ( Chapter 2.1 added by Stats. 1945, Ch. 976. )

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    If there is a tax payment deficiency, the tax collector may accept a partial payment with approval from the board of supervisors.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 5. COLLECTION OF TAXES [2501 - 3205] ( Part 5 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 2.1. Collection in Equal Installments [2700 - 2708] ( Chapter 2.1 added by Stats. 1945, Ch. 976. ) ## 2708. Notwithstanding any other provision of law, in the case of a deficiency in the payment of taxes due and payable pursuant to this chapter, the tax collector, with the approval of the board of supervisors, may accept such partial payment from the taxpayer. Such partial payments are to be applied first to all penalties, interest and costs with the balance being applied to the taxes due. The difference between the amount paid by the taxpayer and the amount due shall be treated as a delinquent tax in the same manner as any other delinquent tax. (Amended by Stats. 1979, Ch. 242.)
  198. 271.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 2. ASSESSMENT [201 - 1367] ( Part 2 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Taxation Base [201 - 287] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 2.5. Late Exemption Claims [270 - 279.5] ( Article 2.5 added by Stats. 1971, Ch. 303. )

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    Late exemption claims can still lead to cancellation or refund of certain tax, penalty, or interest amounts if the exemption application is filed within the stated deadline, with partial relief available in some late-filed cases.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 2. ASSESSMENT [201 - 1367] ( Part 2 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Taxation Base [201 - 287] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 2.5. Late Exemption Claims [270 - 279.5] ( Article 2.5 added by Stats. 1971, Ch. 303. ) ## 271. (a) Provided that an appropriate application for exemption is filed within 90 days from the first day of the month following the month in which the property was acquired or by February 15 of the following calendar year, whichever occurs first, any tax or penalty or interest imposed upon: (1) Property owned by any organization qualified for the college, public school, cemetery, church, religious, exhibition, veterans’ organization, tribal housing, or welfare exemption that is acquired by that organization during a given calendar year, after the lien date but before the first day of the fiscal year commencing within that calendar year, when the property is of a kind that would have been qualified for the college, public school, cemetery, church, religious, exhibition, veterans’ organization, tribal housing, or welfare exemption if it had been owned by the organization on the lien date, shall be canceled or refunded. (2) Property owned by any organization that would have qualified for the college, public school, cemetery, church, religious, exhibition, veterans’ organization, tribal housing, or welfare exemption had the organization been in existence on the lien date, that was acquired by it during that calendar year after the lien date in that year but before the commencement of that fiscal year, and of a kind that presently qualifies for the exemption and that would have so qualified for that fiscal year had it been owned by the organization on the lien date and had the organization been in existence on the lien date, shall be canceled or refunded. (3) Property acquired after the beginning of any fiscal year by an organization qualified for the college, public school, cemetery, church, religious, exhibition, veterans’ organization, tribal housing, or welfare exemption and the property is of a kind that would have qualified for an exemption if it had been owned by the organization on the lien date, whether or not that organization was in existence on the lien date, shall be canceled or refunded in the proportion that the number of days for which the property was so qualified during the fiscal year bears to 365. (b) Eighty-five percent of any tax or penalty or interest thereon imposed upon property that would be entitled to relief under subdivision (a) or Section 214.01, except that an appropriate application for exemption was not filed within the time required by the applicable provision, shall be canceled or refunded provided that an appropriate application for exemption is filed after the last day on which relief could be granted under subdivision (a) or Section 214.01. (c) Notwithstanding subdivision (b), any tax or penalty or interest thereon exceeding two hundred fifty dollars ($250) in total amount shall be canceled or refunded provided it is imposed upon property entitled to relief under subdivision (b) for which an appropriate claim for exemption has been filed. (d) With respect to property acquired after the beginning of the fiscal year for which relief is sought, subdivisions (b) and (c) shall apply only to that pro rata portion of any tax or penalty or interest thereon that would have been canceled or refunded had the property qualified for relief under paragraph (3) of subdivision (a). (Amended by Stats. 2025, Ch. 72, Sec. 3. (AB 1516) Effective January 1, 2026.)
  199. 271.5.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 2. ASSESSMENT [201 - 1367] ( Part 2 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Taxation Base [201 - 287] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 2.5. Late Exemption Claims [270 - 279.5] ( Article 2.5 added by Stats. 1971, Ch. 303. )

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    If exempt property is sold or transferred, the exemption ends on the date of the sale or transfer.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 2. ASSESSMENT [201 - 1367] ( Part 2 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Taxation Base [201 - 287] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 2.5. Late Exemption Claims [270 - 279.5] ( Article 2.5 added by Stats. 1971, Ch. 303. ) ## 271.5. (a) In the event that property receiving the college, public school, cemetery, church, religious, exhibition, veterans’ organization, tribal housing, or welfare exemption is sold or otherwise transferred, the exemption shall cease to apply on the date of that sale or transfer. A new exemption shall be available subject to the provisions of Section 271. (b) Termination of the exemption under this section shall result in an escape assessment of the property pursuant to Section 531.1. (Amended by Stats. 2025, Ch. 72, Sec. 4. (AB 1516) Effective January 1, 2026.)
  200. 272.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 2. ASSESSMENT [201 - 1367] ( Part 2 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Taxation Base [201 - 287] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 2.5. Late Exemption Claims [270 - 279.5] ( Article 2.5 added by Stats. 1971, Ch. 303. )

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    If a late or timely exemption claim is granted, the assessor must enroll or correct the property tax roll, and the auditor must adjust the roll after notice.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 2. ASSESSMENT [201 - 1367] ( Part 2 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Taxation Base [201 - 287] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 2.5. Late Exemption Claims [270 - 279.5] ( Article 2.5 added by Stats. 1971, Ch. 303. ) ## 272. Notwithstanding any other provision of law, whenever a valid application for exemption on the property is filed pursuant to Section 270 or 271 and the assessor grants the claim prior to the completion of the roll for the year for which the exemption is claimed, the assessor shall enroll the property so as to provide for the amount of exemption on the property’s assessed value as provided by the applicable section. When the application for exemption on the property or the granting of the claim occurs after completion of the roll, the assessor shall initiate an action to correct the roll by addition of the appropriate amount of exemption on the property. Upon notification by the assessor, the auditor shall make the appropriate adjustment on the roll. Where authorized under the provisions of this article, the tax, penalty or interest thereon subject to cancellation or refund shall be canceled pursuant to Article 1 (commencing with Section 4985) of Chapter 4 of Part 9, as if it had been levied or charged erroneously, and, if paid, a refund thereof shall be made pursuant to Article 1 (commencing with Section 5096) of Chapter 5 of Part 9 as if it had been erroneously collected. The amount of tax, penalty or interest which is not canceled or refunded under this article with respect to property tax exemptions covered by this article and filed late may be paid in installments as provided in Chapter 3 (commencing with Section 4186) of Part 7. (Amended by Stats. 2003, Ch. 471, Sec. 12.5. Effective January 1, 2004.)

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