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2550-2551 Special Collection Procedures: Rubber-Tired Equipment

2550. GENERAL INFORMATION
In the absence of statutory directions, it is desirable to have some method of standard procedure to implement the requirements of Revenue and Taxation Code section 994(b) and to maintain control of the deduction.

The recommended procedure outlined below incorporates suggestions and recommendations from: the Assessment Standards Division of the State Board of Equalization, the Department of Motor Vehicles, and the Committee on County Tax Collecting Procedures. The procedure has received the committee's approval.

Although the major burden of implementing the procedure falls on the assessor and the auditor, the procedures they will follow are included in this manual so that there is a general understanding of the measures taken to ensure that the proper deduction is made.

2551. RECOMMENDED PROCEDURE
Assessor's Duties:

1) When the assessor receives a business property statement on which the assessee reports rubber-tired equipment that requires a permit (vehicle is oversize or overweight) to be moved or operated on public streets or highways, the assessor immediately mails an Application for Deduction of Vehicle License Fees from Property Tax (form SCO 2-19) to the assessee.

2) The assessee completes and signs the application form and files the application with either the tax collector or the assessor.

3) If the application is filed with the tax collector, the tax collector forwards the application to the assessor.

4) The assessor holds the application on file until the property reported by the applicant on his/her business property statement has been assessed.

When the assessment has been completed, the assessor enters, in Column (8) on the application form, the assessed value of each vehicle listed by the applicant that has been assessed.

If the applicant has listed vehicles that have not been assessed, the assessor enters "N.A." (not assessed) in Column (8) opposite the applicant's entry of the unassessed vehicles. After completing Column (8), the assessor signs the certification at the bottom of the application and forwards the application to the auditor.

5) The auditor determines the net tax due after deduction of the vehicle license fees from the property tax.

To arrive at the net tax due, the auditor determines the property tax, the vehicle license fee paid, and the deduction for each assessed vehicle. The property tax, license fee, tax deduction, and net tax due may be determined as follows.

Property Tax

a. The applicable tax rate must be entered in Column (9), opposite each assessed vehicle.

b. The tax applicable to each assessed vehicle must be computed and the tax entered in Column (10).

License Fee

There are two procedures for determining the license fee paid on vehicles listed on the application. The procedure used depends on whether the vehicle has a normal passenger license or a commercial license.

The type of license is determined from the license numbers shown in Column (2) on the application.

With the exception of personalized plates, passenger vehicle license identification has three or four numbers and three alphabetical letters. For example:

"123 ABC," "ABC 123" or "1CES938"

With the exception of personalized plates, commercial vehicle license identification has one alphabetical letter and five numbers. For example:

"Z 12345" or "12345 Z"

a. Vehicles with Passenger License:

i. Enter "$22.00" in Column (11) on the application.

ii. Subtract the amount in Column (11) from the amount in Column (6). The result is the amount of the vehicle license fee.

iii. Enter the amount of the vehicle license fee in Column (13).

b. Vehicles with Commercial License:

i. Enter "$22.00" in Column (11) on the application.

ii. Determine the weight fee by comparing the information provided by the applicant in Columns (3), (4), (5), and (7) of the application with a Schedule of Weight Fee. A copy of the schedule may be obtained from DMV.

iii. Subtract the amounts in Columns (11) and (12) from the amount in Column (6). The result is the amount of the vehicle license fee.

iv. Enter the amount of the vehicle license fee in Column (13).

Tax Deduction

The amount of tax deduction allowed per vehicle is the amount of the vehicle license fee paid on the vehicle, EXCEPT that the tax deduction per vehicle shall in no case be greater than the tax applicable to the vehicle. Therefore, enter the lesser of the amounts shown in Columns (10) and (13) in Column (14).

Net Tax Due

a. Enter the amount of tax due, as shown on the applicant's tax bill, in Box (15) at the bottom of the application form.

b. Total and enter the amounts in Column (14) in Box (16) at the bottom of the application.

c. Subtract the amount in Box (16) from the amount in Box (15); enter the result in Box (17).

When the net tax due has been determined, the auditor corrects the tax roll to reflect the deduction and credits the tax collector with the amount deducted.

The auditor then signs the certification at the bottom of the application and forwards the application to the tax collector.

Tax Collector’s Duties:

6) After receiving the completed application signed by the applicant, the assessor, and the auditor, the tax collector collects the net tax due.