Gary Gartner (Schaefer) 415-533-2003
Jean Nakano (Vazquez) 916-445-4154
GOVERNOR NEWSOM ISSUES EXECUTIVE ORDER EXTENDING CALIFORNIA BUSINESS TAX FILING DEADLINE
State Board of Equalization Leaders Antonio Vazquez & Mike Schaefer Work With Governor To Help Businesses Impacted By COVID-19
SACRAMENTO – Today, Governor Gavin Newsom signed an Executive Order extending the tax filing deadline for Business Personal Property Tax Statements from tomorrow, May 7, 2020 to May 31, 2020, to avoid penalties.
The Governor also signed an executive order that waives penalties for property taxes paid after April 10 for taxpayers who demonstrate they have experienced financial hardship due to the COVID-19 pandemic through May 6, 2021. This will apply to residential properties and small businesses.
The first Executive Order will extend the deadline for certain businesses to file Business Personal Property Statements from tomorrow to May 31, 2020, to avoid penalties.
California business property taxpayers are required to report their taxable business personal property with a combined value of $100,000 or more to their county assessors annually. Businesses faced a 10% penalty if they were unable to file by this Thursday’s May 7 deadline.
Business Personal Property includes business equipment, supplies, leasehold improvements, and tangible assets like printers, copiers, furniture, manufacturing, and lab and restaurant equipment, but not real property.
State Board of Equalization (BOE) Chairman Antonio Vazquez and Vice Chair Mike Schaefer have worked collaboratively with the Governor’s Office over the last month to obtain relief for business personal property taxpayers whose businesses have been impacted by the COVID-19 pandemic.
Governor Newsom said, “The COVID-19 pandemic has impacted the lives and livelihoods of many, and as we look toward opening our local communities and economies, we want to make sure that those that have been most impacted have the ability to get back on their feet.”
“I appreciate that the Governor took the time to listen to our concerns on behalf of business personal property taxpayers and take much-needed action to assist them during this difficult time,” Chairman Antonio Vazquez stated.
“I want to thank BOE Vice Chair Mike Schaefer, for joining me in working with the Governor’s Office to find a solution and extend the May 7 deadline for Business Personal Property Tax Statements to help taxpayers,” he added.
State Board of Equalization Vice Chair Mike Schaefer said, “In these times of unprecedented hardship for Californians, the Board of Equalization is determined to do everything in our power to ease the burden of COVID-19 on taxpayers.”
“I commend Governor Newsom’s timely and thoughtful action to extend the filing date to May 31, and thereby diminish the burden of COVID-19 on California small businesses and taxpayers,” he added.
Taxpayers should contact their State Board of Equalization Member (boe.ca.gov link opens in a new tab) or their local Assessor for more information.
The five-member California State Board of Equalization (BOE) is the nation’s only directly elected tax board that serves the public through fair, efficient, and uniform tax administration of property taxes.
Video: Governor Newsom Announces Executive Order Extending Property Tax and Business Personal Property Tax Statement Deadlines:
Elected on November 6, 2018, Antonio Vazquez is the Chairman and Third District Member of the California State Board of Equalization, representing more than 10 million residents in Los Angeles, a portion of San Bernardino, and Ventura Counties. Vazquez previously served on the Santa Monica City Council for over 10 years, including holding the offices of Mayor Pro Tempore in 2015 and Mayor in 2016.
Mike Schaefer made history on January 7, 2019 in Sacramento, when at age 80 he became the oldest freshman constitutional officer in state history, taking his Oath of Office from Governor Gavin Newsom as a member of the California State Board of Equalization. Schaefer is the Vice Chair and Fourth District Member, representing 10 million constituents in San Diego, Orange, Riverside, San Bernardino and Imperial Counties. He served for two terms on the San Diego City Council when he was 27 years old.
EXECUTIVE ORDER N-61-20
WHEREAS on March 4, 2020, I proclaimed a State of Emergency to exist in
California as a result of the threat of COVID-19; and
WHEREAS many taxpayers have suffered financial hardship as a result of COVID-19, which has undermined their ability to pay property taxes when those taxes have become due; and
WHEREAS under the provisions of Government Code section 8571, I find that strict compliance with various statutes specified in this Order would prevent, hinder, or delay appropriate actions to prevent and mitigate the effects of the COVID-19 pandemic.
NOW, THEREFORE, I, GAVIN NEWSOM, Governor of the State of California, in accordance with the authority vested in me by the State Constitution and statutes of the State of California, and in particular, Government Code sections 8567, 8571, and 8627, do hereby issue the following Order to become effective immediately:
IT IS HEREBY ORDERED THAT:
1) Division 1 of the Revenue and Taxation Code (including sections 75.52, 2610.5, 2618, 2922, 2705, and 4103) is suspended until May 6, 2021 to the extent that it requires a tax collector to impose penalties, costs, or interest for the failure to pay taxes on property on the secured or unsecured roll, or to pay a supplemental bill, before the date and time such taxes became delinquent, and a tax collector shall cancel such penalties, costs, and interest provided all of the following conditions are satisfied:
i) The property for which taxes were not paid is either:
residential real property occupied by the taxpayer, or
real property owned and operated by a taxpayer that
qualifies as a small business under the Small Business Administration’s Regulations, Code of Federal Regulations, Title 13, section 121.201;
ii) The taxes owed on the property in question were not delinquent prior to March 4, 2020;
iii) The taxpayer timely files a claim for relief in a form and manner prescribed by the tax collector; and
iv) The taxpayer demonstrates to the satisfaction of the tax collector that the taxpayer has suffered economic hardship, or was otherwise unable to tender payment of taxes in a timely fashion, due to the COVID-19 pandemic, or any local, state, or federal government response to COVID-19.
Revenue and Taxation Code section 4985.2, subdivision (a) is suspended to the extent necessary to implement this Paragraph 1.
2) The taxes owed on a property by a taxpayer making payments pursuant to an installment plan under Revenue and Taxation Code section 4837.5 or Revenue and Taxation Code, Part 7, Chapter 3 (commencing with section 4186) shall not be considered delinquent under Paragraph 1 of this Order if, on or before March 4, 2020, all payments required by the plan were made.
3) Paragraph 1 shall not apply to any property for which taxes are paid through an impound account.
4) Revenue and Taxation Code section 441, subdivision (b), and section 463, subdivision (a), are suspended until May 31, 2020 to the extent that either imposes a penalty for failing to file a property statement on or before May 7, 2020, such that no penalty shall be imposed upon a taxpayer if the taxpayer files a personal property tax statement as required by Revenue and Taxation Code section 441(a) on or before May 31, 2020.
IT IS FURTHER ORDERED that, as soon as hereafter possible, this Order be filed in the Office of the Secretary of State and that widespread publicity and notice be given of this Order.
This Order is not intended to excuse any taxpayer from the duty to pay any taxes separate and apart from any penalty, costs, or interest resulting from the failure to pay taxes before the date and time such taxes became delinquent.
This Order is not intended to limit or restrict the existing authority of a tax collector, auditor, or board of supervisors to waive, cancel, or excuse penalties, costs, or interest.
This Order is not intended to, and does not, create any rights or benefits, substantive or procedural, enforceable at law or in equity, against the State of California, its agencies, departments, entities, officers, employees, or any other person.
IN WITNESS WHEREOF I have hereunto set my hand and caused the Great Seal of the State of California to be affixed this 6th day of May 2020.
Governor of California
Secretary of State