California Code of Regulations › Title 18 - Public Revenues › Division 1 - State Board of Equalization-Property Tax (California Department of Tax and Fee Administration - Timber Yield Tax, See Chapter 11) › Chapter 3 - Local Equalization › Article 1 - Hearing by County Board › Section 305.3 - Application for Equalization Under Revenue and Taxation Code Section 469

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) General. In
				  addition to any rights of appeal of escape or supplemental assessments as
				  described in Rule 305(d)(2) of this subchapter, if the result of an audit
				  discloses property subject to an escape assessment for any year covered by the
				  audit, then, pursuant to section
				  1605
				  of the Revenue and Taxation Code, an application may be filed for review,
				  equalization, and adjustment of the original assessment of all property of the
				  assessee at the location of the profession, trade, or business for that year,
				  except any property that has previously been equalized for the year in
				  question.
(b) Definitions. For
				  purposes of subsection (a) of this regulation:
(1) "Audit" means any audit of the books and
				  records of a taxpayer engaged in a profession, trade, or business who owns,
				  claims, possesses, or controls locally assessable business tangible personal
				  property and trade fixtures within the county.
(2) "Property subject to an escape
				  assessment" means any individual item of the assessee's property that was
				  underassessed or not assessed at all when the assessor made the original
				  assessment of the assessee's property, and which has not been previously
				  equalized by an appeals board, regardless of whether the assessor actually
				  makes or enrolls an escape assessment. Property is subject to an escape
				  assessment even if the audit discloses an overassessment of another portion of
				  an item of the property, and the amount of the underassessment could be offset
				  completely by the amount of overassessment. If the audit discloses that any
				  property was subject to an escape assessment, the assessor shall include that
				  fact as a finding presented to the taxpayer as required by Rule 191. If no such
				  finding is made by the assessor, the taxpayer may file an application and
				  present evidence to the board of the existence and disclosure of property of
				  material value subject to escape assessment. For purposes of this regulation
				  only, "material value" means value of no less than 1 percent of the audited
				  value of the taxpayer's trade fixtures and tangible personal property for the
				  year under audit. If the board determines that property subject to escape
				  assessment was disclosed as a result of an audit, the board shall permit the
				  taxpayer's section
				  469 appeal.
(3) "Result of an audit" means the final
				  conclusions reached by the assessor during the audit process as described in
				  Rule 191.
(4) "Original assessment"
				  means the assessment and any subsequent roll corrections or roll changes prior
				  to the date of the commencement of the audit for the roll year for which the
				  result of the audit discloses property subject to an escape
				  assessment.
(5) "All property of
				  the assessee" means any property, real or personal, assessed to the assessee,
				  or the assessee's statutory or legal predecessor in interest, at the location
				  of the profession, trade, or business for the year of the audit.
(6) "Location of the profession, trade, or
				  business" means a site, as determined by the board, where the property subject
				  to the escape assessment in located. Site includes all property within the same
				  appraisal unit as the property that is subject to escape assessment.
Site also includes other property not within the same
					 appraisal unit as the property that is subject to escape assessment, when the
					 other property and the property that escaped assessment function as part of the
					 same economic unit of profession, trade, or business. A "location of the
					 profession, trade, or business" may include multiple parcels of real property,
					 noncontiguous parcels, parcels with separate addresses, and parcels in separate
					 revenue districts within the county.
(7) "Property that has been previously
				  equalized for the year in question" means that the board has previously made a
				  final determination of full value for that item, category, or class of property
				  that was the subject of an assessment appeals hearing or was the subject of a
				  stipulated agreement approved by the board. An item, category, or class or
				  property, or portion thereof, shall be deemed to have been the subject of a
				  hearing or of a stipulated agreement only to the extent the board's decision or
				  the stipulated agreement specifically identify the value of such item,
				  category, or class, or portion thereof, as having been contested and resolved
				  at hearing or as having been agreed to by the parties in
				  stipulation.