<div>April 3, 2020 The Honorable Gavin NewsomGovernor, State of CaliforniaState CapitolSacramento, CA 95814 Subject: Request Executive Order Partially Suspending Revenue and Taxation Code Sections 2618 and 4103    Dear Governor Newsom: Thank you for your leadership in response to the COVID-19 pandemic, including your March 12 executive order allowing the California Department of Tax and Fee Administration and the Franchise Tax Board to extend tax payment deadlines. Your executive orders extending those deadlines will allow individuals to focus on paying immediate, necessary expenses during these uncertain times. Your action also gives businesses a better chance to maintain positive cash-flow at a time when operations have been reduced dramatically, making it possible for businesses to keep idle employees on payroll and continue paying bills. On April 10, property owners throughout California will be required to remit payment for the second installment of locally assessed property taxes. Failure to pay the second installment by that date results in a 10% penalty (Revenue and Taxation Code section 2618), and if those taxes remain unpaid by June 30, an additional penalty of 1.5% per month attaches (Revenue and Taxation Code section 4103). Counties have limited discretion to waive delinquency penalties under section 4985.2, for “reasonable cause and circumstances beyond the taxpayer’s control [that] occurred notwithstanding the exercise of ordinary care in the absence of willful neglect.” Moreover, that local waiver can be given only if full payment is made by June 30. Therein lies the problem that requires your action. There have been conflicting media reports about whether local Treasurer-Tax Collectors may grant waivers under Revenue and Taxation Code section 4985.2 for economic reasons or only for reasons directly related to COVID-19 – such as the taxpayer being hospitalized or otherwise directly incapacitated with the disease. Many counties are interpreting existing law to forbid them from allowing a penalty waiver if the taxpayer needed the tax payment to meet payroll, or to pay rent or provide for their family or other economic reasons. This means in the best case, relief will be inconsistently granted across the state, and at worst, available to almost no one. Additionally, when businesses are trying to avoid furloughs and layoffs, the administrative burden of applying for waivers can be extremely onerous. Businesses with multiple parcels in more than one county may be required to file a penalty waiver request for each parcel number – resulting in thousands of requests that county employees will have to process and evaluate. None of this will be done by April 10, and taxpayers who choose to defer payment will do so with no certainty of the status of their request for waiver until it is too late to do something about it before the 10% penalty attaches. During a State of Emergency, Government Code Section 8571 authorizes the governor to suspend a statute, and we urge you to exercise your authority to partially suspend Revenue and Taxation Code sections 2618 and 4103 to allow payment of the second installment of property taxes by July 15, the extension date you already granted for income tax filing and payment. We are aware that property taxes are primarily a local revenue source, and we are sensitive to the needs of local government at this extraordinary time. For that reason, we do not believe the suspension need apply to payments of property taxes by third-party holders of “impound accounts.” When considering the balance between the needs of the taxpayers and the needs of local government, we ask you to consider the following: <ul><li>Taxes on all business personal property already have been fully paid;</li></ul> <ul><li>The first installment (50%) of property taxes on the secured roll was paid in December. Some taxpayers paid their entire property tax at that time for income tax reasons;</li></ul> <ul><li>About 57% of homeowners use impound accounts, and local government would receive that money as well.</li></ul> Given that the counties have received or will receive the vast majority of property tax revenue under our requested partial suspension, a 90-day delay in receiving the remaining tax is a reasonable share of the burden for local government to bear when balanced against the daily fight to survive that taxpayers are facing. Suspension of these sections for all 58 counties will allow taxpayers time to focus on staying afloat in the days and weeks ahead as we all fight COVID-19 through social distancing and keeping business doors closed. We thank you for considering this request and for your continued work on behalf of Californians during this historic health crisis. Taxpayers appreciate your candor and transparent daily updates, and the many steps that you and your administration have taken to protect the health of all Californians and minimize the impact of COVID-19.  On behalf of California businesses and homeowners,        <table><tr><td>Robert Gutierrez</td><td><div class="indented">Jon Coupal</div></td></tr><tr><td>CalTax President</td><td><div class="indented">Howard Jarvis Taxpayers</div></td></tr><tr><td>and Chief Executive Officer</td><td><div class="indented">Association President</div></td></tr><tr><td>Also on behalf of:</td><td> </td></tr><tr><td>California Taxpayers Association</td><td>Howard Jarvis Taxpayers Association</td></tr><tr><td>Advanced Medical Technology Association</td><td>California Apartment Association</td></tr><tr><td>Agricultural Council of California</td><td>California Association of Boutique &amp;</td></tr><tr><td>Airlines for America</td><td>Breakfast Inns</td></tr><tr><td>American Property Casualty Insurance</td><td>California Association of Winegrape</td></tr><tr><td>Association</td><td>Growers</td></tr><tr><td>Apartment Association of Greater Los</td><td>California Attractions and Parks Association</td></tr><tr><td>Angeles</td><td>California Bankers Association</td></tr><tr><td>Association of California Life &amp; Health</td><td>California Business Roundtable</td></tr><tr><td>Insurance Companies</td><td>California Business Properties Association</td></tr><tr><td>Bay Area Council</td><td>California Cattlemen’s Association</td></tr><tr><td>Building Owners and Managers Association</td><td>California Chamber of Commerce</td></tr><tr><td>of California</td><td>California Fuels &amp; Convenience Alliance</td></tr></table> California Hotel &amp; Lodging AssociationCalifornia Independent PetroleumAssociationCalifornia Lodging Industry AssociationCalifornia Manufacturers &amp; TechnologyAssociationCalifornia Mortgage Bankers Association California Retailers AssociationCalifornia Rental Housing AssociationCalifornia Restaurant AssociationCalifornia Travel AssociationCalifornia Trucking Association CampCalNOW RV Park and CampgroundAlliance Coalition of Sensible TaxpayersCoalition of Small &amp; Disabled VeteranBusinessesEl Monte/South El Monte Chamber ofCommerce Family Business Association of CaliforniaFlasher Barricade AssociationGreater Irvine Chamber of Commerce Greater Riverside Chambers of Commerce Greater San Fernando Valley Chamber of CommerceHotel Association of Los AngelesHumboldt and Mendocino RedwoodCompaniesInternational Council of Shopping Centers Kern County Taxpayer AssociationLong Beach Hospitality AllianceLos Angeles County EconomicDevelopment CorporationMike Naggar and Associates Inc. Murrieta/Wildomar Chamber of CommerceNareitNAIOP of California, the Commercial RealEstate Development Association North Bay Leadership CouncilNorth Orange County ChamberOfficial Police Garages Associations of LosAngelesOrange County Business CouncilOrange County Taxpayers AssociationOrange County Realtors Oxnard Chamber of CommercePlumbing-Heating-Cooling ContractionsAssociation of CaliforniaPrivate Essential Access CommunityHospitals, PEACH Property Owners Association of RiversideCounty RyanSanta Ana Chamber of CommerceSanta Cruz Chamber of CommerceSan Gabriel Valley Economic PartnershipSanta Maria Valley Chamber of Commerce Santa Rosa Metro ChamberSilicon Valley Leadership GroupSouthern California Rental HousingAssociationSouthwest California Legislative Council Southwest Riverside County Association ofRealtorsSpidell Publishing, Inc.The Silicon Valley OrganizationTemecula Valley Chamber Commerce United Hospital AssociationValley Industry &amp; Commerce AssociationWestern Electrical Contractors AssociationWestern Manufactured HousingCommunities Association Western States Petroleum AssociationsWine Institute     ac: Ann O’Leary, Chief of Staff, Office of Governor Gavin Newsom Ana Matosantos, Cabinet Secretary, Office of Governor Gavin Newsom Anthony Williams, Office of Governor Gavin Newsom The Honorable Betty Yee, State Controller The Honorable Antonio Vazquez, Chair, Board of Equalization The Honorable Mike Schaefer, Vice Chair, Board of Equalization The Honorable Malia M. Cohen, Board of Equalization The Honorable Ted Gaines, Board of Equalization Keely Bosler, Director, Department of Finance</div>

California Tax Watchdog Asks Governor for Property Tax Extension

California Tax Watchdog Asks Governor for Property Tax Extension

California Taxpayers Association

The California Taxpayers Association wrote a letter to the governor advocating for a 90-day property tax payment deadline extension from April 10, 2020, due to COVID-19, asking the governor to consider that taxes on all business personal property have been paid already, that 50 percent of property taxes were secured in December 2019, and that over half of homeowners use impound accounts.

The California Taxpayers Association wrote a letter to the governor advocating for a 90-day property tax payment deadline extension from April 10, 2020, due to COVID-19, asking the governor to consider that taxes on all business personal property have been paid already, that 50 percent of property taxes were secured in December 2019, and that over half of homeowners use impound accounts.

California

Amnesties

Search Connectors

Retrieving Documents With a Tax Analysts’ Citation:

Field Restricted Searching:

California Tax Watchdog Asks Governor for Property Tax Extension