Current through Register 2024 Notice Reg. No. 38, September 20, 2024
(a) Content and Arrangement of
Board-Prescribed Racehorse Forms. The annual tax imposed by section
5721
of the Revenue and Taxation Code on the privilege of breeding, training, caring
for, or racing racehorses in this state shall be administered as provided
herein. A county assessor shall use board-prescribed racehorse forms. An
assessor shall not change headings, shall not reduce the font size of text, and
shall not change questions in, add questions to, or delete questions from the
racehorse forms prescribed by the board. An assessor may add county-specific
identifying information, such as the assessor's name and logo, the county's
name and logo, and the assessor's contact information, to a board-prescribed
racehorse form. An assessor may designate an area on a board-prescribed
racehorse form as for assessor's use only and may delete, edit, or move an area
on a board-prescribed racehorse form that is designated for assessor's use
only. Subject to board approval, an assessor may also:
(1) Alter the size of a board-prescribed
racehorse form to meet the needs of office procedures and facilities;
(2) Bold specific text or enlarge font sizes
on a board-prescribed racehorse form; and
(3) Change the orientation of a
board-prescribed racehorse form, for example, from portrait layout to landscape
layout.
(b) Checklist for
Annual Racehorse Tax Forms.
Annually, on or before September 1, the assessor shall notify
the board, on a checklist provided by the board, of those board-prescribed
racehorse forms, including instructions, which the assessor:
(1) Will reproduce from the current prototype
forms and instructions distributed by the board for use for the succeeding
assessment year with or without the addition of county-specific identifying
information;
(2) Will produce with
changes authorized by subdivision (a)(1), (2), or (3); or
(3) Will have no need.
(c) Approval of Annual Racehorse Tax Forms.
When filing the checklist, the assessor shall submit to the board (either in
hard copy or electronically) for approval a copy of each form, including
instructions, which the assessor will produce with changes authorized by
subdivision (a)(1), (2), or (3). If a form does not conform with the
specifications prescribed by the board, the assessor shall be notified in
writing of the variances. The assessor shall submit a revised racehorse form
within 30 days of the date of the notice.
(d) County-Developed Racehorse Tax Forms. An
assessor may only develop a property tax form if a statute expressly exempts
the assessor from the requirement that the assessor use a board-prescribed form
(see, for example, Revenue and Taxation Code sections
75.31
and
534),
or the assessor needs a form to request relevant information that is not
requested in a form the board prescribed for the same purpose.
(1) Assessors are encouraged to jointly
develop uniform questions and property tax forms to obtain the same information
throughout the state.
(2) Assessors
are encouraged to request that the board change questions in, add questions to,
and delete questions from board-prescribed property tax forms or prescribe new
property tax forms when:
(A) Multiple
assessors need to request information that is not requested in a form the board
prescribed for the same purpose; or
(B) Board-prescribed property tax forms
contain questions that assessors no longer need.
(3) An assessor may not use a
county-developed property tax form unless the assessor obtains prior approval
from the board that the current statutory and regulatory provisions are
reflected on the form, and an assessor does not have authority to impose
penalties on any person for failing to complete a county-developed property tax
form.
(e) Distribution of
Forms and Retention of Reports.
(1) Copies of
the forms prescribed by the board for reporting the tax due and for reporting
the names of persons whose racehorses are boarded with others shall be
furnished by the assessor no later than December 15 prior to the calendar year
in which the tax is due by mailing them to persons believed to be required to
use them and by making them available at the assessor's office to any person
requesting them.
(2) The assessor
shall maintain a record of those persons believed to be liable for the annual
racehorse tax to whom the assessor has furnished copies of the forms. A copy of
the record shall be delivered to the tax collector within 10 days of the date
when copies of the forms are furnished so that the tax collector can be
cognizant of the taxpayers who can reasonably be expected to file
returns.
(3) The assessor shall
retain a copy of all tax returns filed by taxpayers for a period of five years
from the date the returns became due. They shall be arranged or identified so
as to indicate whether or not an audit is required under subsection (f) of this
regulation.
(f) Audits.
(1) The assessor shall audit the tax records
relative to his or her county of any racehorse owner who, according to the
assessor's records, had a gross tax liability (before addition of any
penalties) that exceeds $4,000 for each of four consecutive calendar years.
This audit shall be performed within five years of the date on which the annual
racehorse tax first became due and shall include, but not be limited to, a
comparison of the annual racehorse tax return with records maintained by the
taxpayer. The assessor, when performing an audit pursuant to this regulation of
a taxpayer's records of racehorses taxable at a home ranch or other business
location, may also audit records of the same taxpayer pertaining to personal
property and fixtures on property having tax situs at the same
location.
(2) When an assessor
schedules an audit of the records of any racehorse owner, whether as part of an
audit required by section
469
of the Revenue and Taxation Code or independently thereof, the assessor shall
advise the assessor of any other county in which racehorses of the taxpayer
were taxable, as shown in the Annual Racehorse Tax Return or in any other
source, of the date on which the audit will be performed. Upon completion of
the audit, the assessor shall make that portion of the audit findings relevant
to the annual racehorse tax available to the assessor of any other county in
which racehorses of the taxpayer were taxable.
(3) On discovery that horses escaped
taxation, the assessor shall determine whether they were subject to the annual
racehorse tax, were subject to the property tax, or were exempt. If determined
taxable, the assessor shall either provide the tax collector with copies of the
audit workpapers so that a determination of additional racehorse tax due can be
calculated, or enroll an ad valorem assessment of escaped personal
property.
(g) Forms
Posted on the Internet. Counties are encouraged to make annual racehorse forms
available on their county Internet websites, and to ensure that only the most
current forms are posted on their websites.
(h) Nothing herein shall be construed to
prohibit the assessor from auditing the records of taxpayers for which audits
are not required by this regulation.
1. New section
filed 11-1-72; effective thirtieth day thereafter (Register 72, No.
45).
2. Amendment of subsection (a) filed 10-26-73; effective
thirtieth day thereafter (Register 73, No. 43).
3. Amendment of
subsections (a)(3) and (c) filed 2-2-83; effective thirtieth day thereafter
(Register 83, No. 6).
4. Amendment of section and NOTE filed
2-17-2005; operative 3-19-2005 (Register 2005, No. 7).
5. Amendment
filed 1-14-2013; operative 4-1-2013 (Register 2013, No.
3).
Note: Authority cited: Section
15606,
Government Code; and Section
5781,
Revenue and Taxation Code. Reference: Section
15606,
Government Code; and Sections
469,
5701,
5721,
5765,
5768,
5781
and
5790,
Revenue and Taxation Code.
