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1620-1627 Refunds: Procedural Requirements to Initiate

1620. CLAIM REQUIRED
Refunds may be made only upon a verified claim filed by the person who paid the tax or his/her guardian, executor or administrator (Rev. & Tax. Code §5097).

EXCEPTION: Revenue and Taxation Code section 5097.2 permits the tax collector or the auditor to make a refund within four years after the date of the payment without a claim being filed, under the following conditions:

1) The amount was paid more than once;

2) The amount paid exceeds the amount due on the property as shown on the roll;

3) The amount paid exceeds the amount due on the property as a result of corrections to the roll or cancellations ordered by the board of supervisors after such taxes were paid;

4) In any other case where the claim for refund is made under penalty of perjury and is for an amount less than ten dollars ($10), if written consent of the county legal advisor is obtained for the refund; or

5) The amount paid exceeds the amount due on the property as a result of a reduction attributable to a hearing before an assessment appeals board or an assessment hearing officer.

The claim must be filed for both secured and unsecured taxes (M-2171) in order to comply with necessary administrative procedures before filing a court action (Rev. & Tax. Code §5140). See M-1630 and M-2175 regarding court action.

NOTE: Form SCO 1-06 is recommended for use but is not mandatory. However, irrespective of the manner of the claim for refund, the law requires a verification before a refund can be made (Rev. & Tax. Code §5097).

1621. CLAIM FOR REFUND BY MAIL
A claim for refund may be submitted by mail. The terms and conditions under which such mailed applications may be accepted are set forth in Revenue and Taxation Code section 2513.

1622. CONTENTS OF CLAIM
The claim shall be in writing, specifying whether the whole assessment or part of the assessment is claimed to be void. If the claim is for part of an assessment, it must be identified. The claimant must also specify the grounds on which the claim is founded (Rev. & Tax. Code §5097.02).

1623. IMPOUNDING OF FUNDS
When a claim for refund of taxes is filed, the amount of tax computed on the portions of the assessment not in dispute shall not be impounded (Rev. & Tax. Code §5097.03).

1624. TIME LIMITATIONS
If a verified, written claim for refund is filed pursuant to Revenue and Taxation Code section 5097 (M-1620), the following time frames apply.

1) Except as provided in Revenue and Taxation Code section 5097(a)(3), the claim must be filed within four years after the making of the payment sought to be refunded, or within one year after the mailing of the notice as prescribed in Revenue and Taxation Code section 2635, or the period agreed upon by the assessor and the taxpayer as provided by Revenue and Taxation Code section 532.1, or within 60 days of the date of the notice by the auditor as prescribed in Revenue and Taxation Code section 4836(a), whichever is later (Rev. & Tax. Code §5097(a) (2)).

2) An application for a reduction of an assessment filed under Revenue and Taxation Code section 1603 constitutes a sufficient claim for refund if the applicant states that the claim is for a refund. If the application does not include a claim for refund, the applicant can file a separate claim for refund, pursuant to Revenue and Taxation Code sections 1603 or 1604, within the time frame specified in section 5097(a)(3). (Rev. & Tax. Code §5097(b)).

3) If an application for equalization of an escape assessment is filed pursuant to section 1603, a claim may be filed on any taxes resulting from the escape assessment or the original assessment to which the escape relates within the period provided in Revenue and Taxation Code section 5097(a)(3). (Rev. & Tax. Code §5097(c)).

1625. COMPUTATION OF AMOUNT
Penalties and costs refundable shall be computed only on the tax refunded (Rev. & Tax. Code §5106).

1626. REFUND OF CITY AND DISTRICT TAXES
The refund may include taxes collected for a city or revenue district (Rev. & Tax. Code §5099).

1627. 1915 ACT BOND ASSESSMENTS
The Improvement Bond Act of 1915 (Sts. & Hy. Code §8684) provides: "Taxpayers shall have the same right to pay assessments together with interest, and any penalties thereon, under protest as they have to pay general city taxes under protest, but their written protest must accompany such payment." Former Revenue & Taxation Code section 5138, which was repealed, provided for such an action after payment under protest.

With the repeal of the protest provision, Article 2 (commencing with Rev. & Tax. Code §5140) provides for the filing of an action against a city only in superior court, but not in the small claims division, if the city council has refused to refund on a claim filed pursuant to Article 1 (commencing with Rev. & Tax. Code §5096). (For other payments under protest, and claims for refund provisions, see M-1246 and M-1601.)

NOTE: Once an apportionment and distribution have been made by a county that collects 1915 Act bond assessments on behalf of a city, any claim for refund must be filed with the city.